New IVCA chair says proposed Personal Investment Account could help increase local funding for Irish start-ups and support economic growth.
Richard Watson, managing partner of Furthr VC, has been elected chairperson of the Irish Venture Capital and Private Equity Association (IVCA), succeeding Caroline Gaynor, partner at Lightstone Ventures, who has completed her term in office.
The IVCA represents venture capital and private equity firms across the island of Ireland at a time when the sector is grappling with a slowdown in investment activity and growing concerns over the availability of scale-up funding for indigenous businesses.
“We have an abundance of super tech entrepreneurs and tech start-ups in Ireland, but their potential is being constrained by a significant shortage of scale-up capital”
Last year, venture capital investment into Irish technology start-ups and SMEs totalled €1.1 billion, marking the first decline in annual funding levels since 2018. Against that backdrop, Watson has highlighted the need to strengthen domestic investment sources and reduce Ireland’s reliance on international capital.
Powering the indigenous knowledge economy
Commenting on the funding landscape, Watson said: “We have become overly reliant on overseas investors to fuel the development of our indigenous knowledge-based economy. This is particularly worrying in a world which has become increasingly isolationist while at the same time vast amounts of international venture capital are being channelled into large-scale Artificial Intelligence (AI) deals, particularly in the United States.”
He warned that a shortage of locally available growth capital is limiting the potential of Irish technology businesses.
“We have an abundance of super tech entrepreneurs and tech start-ups in Ireland, but their potential is being constrained by a significant shortage of scale-up capital. We need to stimulate the supply of local institutional funding. The Government’s proposed Personal Investment Account (PIA) could become one mechanism for encouraging greater domestic investment, helping to boost economic growth and jobs.”
The comments come amid concerns within the venture capital sector that Irish start-ups are becoming increasingly dependent on overseas investors. In the first quarter of this year, 85% of funding secured by Irish technology SMEs came from international venture capital firms.
As managing partner of Furthr VC, Watson oversees a portfolio of 22 companies focused primarily on medtech and business-to-business software across Ireland. He brings a combination of engineering, research and investment experience to the role, having graduated in electronic engineering and biomedical engineering research from Trinity College Dublin before completing an MBA at Durham University.
His appointment comes at a pivotal time for Ireland’s venture capital ecosystem as policymakers, investors and entrepreneurs seek new ways to increase the flow of capital into high-growth indigenous businesses and support long-term innovation-led economic development.
Outgoing chair Caroline Gaynor completed her term after leading the IVCA during a period of significant change in global venture capital markets and increased focus on funding sustainability for Irish start-ups.
The IVCA said Watson will now lead the organisation as it continues to advocate for policies designed to strengthen Ireland’s venture capital and private equity landscape and improve access to funding for growing businesses.
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