Elkstone to create €50m seed fund for Irish tech firms

Wealth management firm Elkstone is launching a €50m seed fund for early-stage Irish tech firms.

Elkstone is already a key investor in growing Irish tech companies and previous investments include Manna, Penfold, Catapult, HealthBeacon, Coras, LetsGetChecked and Flipdish.

It is understood that the fund has been under development for a number of months and is already oversubscribed by investors.

Investors include high net worth individuals and Elkstone’s founder Alan Merriman.

The fund plans to invest in up to 40 companies, making investments of between €250,000 and €1.5m per company.

Early stage investing in Ireland rallies

The timing of the fund is pivotal as recent reports from the Irish Venture Capital Association (IVCA) signal a rallying of seed and early-stage funding in Ireland.

In the third quarter of 2019 there was a 36pc increase in the number of companies achieving investment up to €10m. This rose from 139 in the first nine months of 2018 to 189 in 2019. This figure is also up 11pc for the quarter versus the same period last year.

Seed funding in the third quarter was up 30pc on the same period last year.

Written by John Kennedy (john.kennedy3@boi.com)

Published: 25 February, 2020