Ireland Has the Potential to Create a Stable of Unicorns – IVCA

Irish entrepreneurs have the talent and potential to create a stable of unicorns (privately owned start-ups valued at more than $1 billion) and global winners if the absence of scaling finance can be addressed.

This was stated by the Irish Venture Capital Association, when it welcomed the announcement by Peter Burke TD, Minister for Enterprise, Trade & Employment, that his department has established an implementation committee to immediately start work on recommendations to assist high potential start-ups access scaling finance.

“Ireland has huge potential to create a stable of unicorns and baby unicorns if the scaling problem can be tackled,” commented Sarah-Jane Larkin, director general of the Irish Venture Capital Association.

“The Irish ecosystem for getting companies off the ground, including government and state bodies such as EI (Enterprise Ireland) and ISIF (Ireland Strategic Investment Fund), is largely working well. The big problem is that, because of a lack of local scaling finance, these innovative, tech-based Indigenous companies often fall into overseas ownership due to trade sales long before they have reached their potential.

“The challenge, recognised in the Minister’s announcement, is our over-dependence on unpredictable international investors in taking these start-ups to the next level of growth.”

She pointed out that in the first quarter of 2024, international funding into Irish SMEs fell by 57% to €184m from €425m last year.

“While we are developing innovative, exciting, indigenous technology start-ups we must put in place mechanisms to source private capital to scale them up to global winners.”

She echoed the department’s report that lack of this vital scaling finance means that after funding high-risk seed and early-stage companies, Ireland will lose out on employment, tax revenues, the opportunity to create long-term economic value, and the positive spill overs of developing world class firms.