A surge in venture capital funding in Ireland was primarily to fund buy-outs rather than startups, according to a PricewaterhouseCooper report published today.
Total investments in Ireland by venture capital firms surged in 2003 with a significant amount being used to fund buyouts, a PricewaterhouseCooper (PwC)report said today.
The study of technology investments in Europe said the amount of Irish-based venture capital (VC) used to support start-up declined by 25 per cent in 2003.
Last year the total invested by VC funds was €535 million in Ireland, compared with €129 million in 2002.
Irish VCs invested €255 million last year of which €176 million was used to fund the buy-outs of seven companies, including Riverdeep, Alphyra and Trinity Mirror.
Mr Shay Garvey, chairman of the Irish Venture Capital Association (IVCA) confirmed that: "Funds invested by their members in 2003 amounted to ?255 million compared to €105 million in 2002, an increase of 143 per cent. These funds invested funded the start up or expansion of 180 companies in 2003".