Two Irish technology firms have raised more than $30 million (€33.3 million) in venture capital funding despite the current wariness in the hi-tech sector.
NTera, an Irish nanotechnology company, is understood to have secured approximately €20-€23 million in funding, while Dublin-based firm Vordel has secured up to $10 million.
Both companies raised a significant portion of the cash from a select band of international venture capital firms including the Intel 64 Fund, Elderstreet and Dresdner Kleinwort Wasserstein.
NTera, a University College Dublin-based campus company known until recently as Nanomat, is understood to have received the cash influx from a combination of Irish and US backers.
It has already received £7 million (€8.89 million) from Cross Atlantic Capital Partners, Evolution Capital and private investors. It has been seeking funding over the past year.
Belfast businessman Mr Gerry McCrory, founder of Irish venture firm Crucible, has been one of the strongest supporters of the company. Crucible is 37 per cent owned by Cross Atlantic Capital Partners and Mr McCrory now heads the Irish arm of the US-based Cross Atlantic.
Nanotechnology is computing at the infinitesimally small level of molecules and atoms - a nanometer is a billionth of a meter, or 80,000 times more slender than a single human hair. One of the most cutting edge areas of the technology sector, nanotechnology promises to eventually deliver computer chips only a few molecules in size, and tiny self-assembling molecular "engines" that could build substances, or nanomaterials, only a nanometer wide.
Nanotechnology could also supply minute machines that would enter the bloodstream and deliver medication to targeted areas.
NTera is focusing on developing nanomaterials with a broad range of applications, including flat-panel screen displays, medical diagnostic sensors, drug delivery and photovoltaic cells that will darken and lighten windows on demand. The company intends to license its intellectual property rather than get involved with the manufacture of nanomaterials or specific products.
While several Irish universities and companies conduct research in nanotechnology, NTera is the only full-fledged Irish company focused solely on commercial applications in the area.
NTera was set up as a campus company in 1997 by Dr Donald Fitzmaurice, Professor of Nanochemistry at UCD. He is now chief technology officer.
The firm is known to have been preparing for expansion by looking closely at the US market and bolstering its scientific advisory board with recognised names in the international nanotechnology field.
The firm has a US presence through Enterprise Ireland's technology incubation facility in Silicon Valley. A company called Nanomat already exists in the US, prompting the recent name change to NTera. Vordel, which develops products providing a secure framework for web services, announced yesterday it had raised up to $10 million financing in a funding round led by UK venture capital firm Elderstreet.
A number of existing investors including ICC venture capital, Intel 64 Fund, Powerscourt Nominees Limited and Dresdner Kleinwort Wasserstein also supplied funding. Vordel's flagship product, TalkXML, enables companies to quickly deploy secure solutions to extend their business processes over public networks and integrate with the systems of their trading partners.
