Irish investment house Elkstone has closed a €100 million fund aimed at early stage Irish companies, with the Ireland Strategic Investment Fund (ISIF) anchoring it.
The fund is aiming to support the new generation of Irish entrepreneurs creating high potential, scalable companies.
Elkstone has already invested €10 million of the fund to date, including Bluedrop Medical, MEG, Inclusio, Allsorter, Danalto and Output Sports. Others are set to close imminently, with artificial intelligence and cybersecurity among the investment targets. The initial investments, which are expected to be in the range of €1 million to €2 million, are set to be completed by 2026.
Other backers of the fund, which is the largest early stage in Ireland, include Enterprise Ireland, through its seed and venture capital scheme, and Elkstone’s existing client base.
“We are delighted to have delivered on our promise to the Department of Finance and our clients to bring about a unique EIIS venture fund providing access to support the venture funding ecosystem here. Our fund investor base comprising both entrepreneurs and private capital alongside EI and ISIF, is a key edge in helping us bring meaningful value add to Irish founders as they look to fulfil their businesses potential and scale internationally “ said Elkstone chief executive Alan Merriman.
“Whilst the macro backdrop is undoubtedly challenging, it is a good time to be investing and we are very positive on the outlook for disruption and innovation. We are very much looking forward to continuing to play our part in enabling deserving early stage businesses to grow and bring about stellar returns for our investors and meaningful social and economic impact for the Irish economy.”
Elkstone, which was founded in 2011 and is best known for its venture investments in start-ups such as Flipdish, LetsGetChecked, Manna, and Soapbox Labs, has invested in more than 50 start-ups through its venture arm. That has led to the support of more than 1,000 new jobs, with the companies raising more than €600 million in subsequent funding rounds.
The company initially planned a €75 million fund, announcing it January last year, but later decided to expand it after recognising the potential in the market.
The commitment from ISIF to anchor the final close will help tap into that potential.
“ISIF is a strong supporter of indigenous Irish businesses that have ambitions to scale and target international markets,” said ISIF director Nick Ashmore. “This fund expands our reach in early-stage venture capital and gives Irish businesses a valuable new option for attracting the capital they need to grow. Our new partnership with Elkstone will fuel the success of a range of fast-growing Irish businesses and we aim to build on these success stories in the coming years.”
