Early-stage momentum remains robust, though challenges in scaling persist and funding activity softened across last year, according to latest TechIreland data.
Irish start-ups raised €992 million across 319 companies in 2025, according to TechIreland’s Start-up Funding Review 2026, with a strong first quarter shaping the overall performance of the year.
The total represents a modest increase of €14 million on 2024 and suggests that annual funding levels have stabilised in the €900 million to €1 billion range following the highs seen in 2021. The number of companies securing investment also edged higher from 307 in 2024.
“The pattern of Irish companies being underfunded relative to international competitors remains a worry”
A standout first quarter saw 69 companies raise €616 million, marking the strongest opening quarter for Irish start-up funding in a decade. Activity eased in the months that followed, with €376 million raised across the remaining three quarters by 250 companies.
Brian Caulfield, chair of TechIreland and lobby group Scale Ireland, said the year delivered mixed results. “2025 was very much a curate’s egg. It was good in parts, mainly in Q1, when 69 Irish companies raised a total of €616 million. That was the best quarter for fundraising in Ireland for 10 years. Unfortunately, the rest of the year saw a return to weakness with just €376 million raised by 250 companies across the rest of the year.”
He added that funding concentration remains a defining feature of the market. “Once again, just four outliers represented almost half of all funding at 46%. More widely, the pattern of Irish companies being underfunded relative to international competitors remains a worry.”
The largest rounds of the year came from LetsGetChecked at €150 million, XOCEAN at €115 million, Tines at €114 million and ProVerum at €73 million. Together, these four companies accounted for nearly half of total funding.
Early-stage strength continues
The report highlights sustained strength at the early stage of the funding pipeline, supported largely by Enterprise Ireland programmes. A record 211 companies raised rounds below €1 million during 2025, reflecting continued growth in start-up formation.
Enterprise Ireland’s Head of Start-ups, Conor O’Donovan, said expanding access to funding remains central to the agency’s strategy. “It is particularly encouraging that early-stage activity continues to strengthen, with a record number of companies accessing initial funding. At the same time, challenges in accessing scaling capital remain.”
He said the organisation is adapting its approach to address these gaps. “Enterprise Ireland’s new investment strategy moves beyond early-stage funding to multi-stage investing, enabling larger funding rounds and providing greater support for Irish companies to scale.”
While the number of rounds in the €1 million to €5 million range increased to 58, activity in the €5 million to €30 million bracket dropped back to levels last seen before 2019. Larger growth rounds above €30 million remained broadly consistent, though many of these were concentrated in the early part of the year.
Pressure on scaling capital
The uneven distribution of capital across funding stages reflects a broader trend identified by the Irish Venture Capital Association. Its latest VenturePulse survey found that Irish technology SMEs raised €221.7 million in the first quarter of 2026, down 58% on the same period in 2025, which had benefited from an exceptional inflow of investment.
Sarah-Jane Larkin, director general of the IVCA, said market conditions are shaping investor behaviour. “In the current global environment, heightened geopolitical uncertainty and volatility in international markets are likely to reinforce investor caution.”
She emphasised the importance of policy support for scaling businesses. “For Ireland, this underlines the importance of maintaining and accelerating the Finance for Scaling agenda. This work is critical to ensuring that indigenous companies can access the depth of capital required to grow, compete internationally and become long-term employers.”
Sector trends led by life sciences
Life sciences remained the dominant sector for investment in 2025, attracting more than half of total funding. Significant deals included LetsGetChecked, ProVerum, Deciphex and Perfuze.
Enterprise software and fintech ranked as the next most active sectors, both improving on their performance in the previous two years. The report also pointed to continuing momentum in deep tech, artificial intelligence, medtech and robotics.
Enterprise Ireland noted that 99 of the start-ups it supported in 2025 have AI at the core of their offering, reflecting the growing importance of the technology across industries.
In contrast, funding for energy and clean technology dropped sharply from €328 million in 2024 to €41 million in 2025, reflecting a slowdown in large capital-intensive transactions.
Regional funding and international standing
Dublin-based companies accounted for €667.5 million of funding across 192 firms, representing around 60% of funded companies and 67% of total investment value in 2025. Regional activity remained broad, with Galway, Cork, Louth, Wicklow and Antrim all recording solid levels of investment.
Companies outside Dublin raised €210.1 million during the year. Northern Ireland continued its upward trajectory, securing more than €114 million in funding, with a strong concentration in Antrim.
Clare Ryan, chief executive and co-founder of ITUS Secure Technologies, highlighted the experience of regional founders. “The imbalance between regional and Dublin-based fundraising still persists. Starting and scaling a company outside Dublin can feel remote to capital, networks and visibility. For founders based in regions, it often seems we have to prove both that the company model works and that the region does too.”
Funding directed towards female-founded companies remained steady at 15% of the total. In absolute terms, these businesses raised €146 million across 92 companies in 2025.
TechIreland noted that while progress remains gradual, the proportion compares favourably with some international markets where female founder funding is significantly lower.
Outlook for 2026
Margaret Rae, chief executive and founder of Konree Innovation, said the funding environment remains competitive. “The figures are strong and show Irish founded companies continue to attract strong investment. 2025 was challenging and 2026 is equally challenging as the large AI companies continue to draw in most of the investment funding.”
She pointed to continued investor interest in specialised sectors. “It’s good to see companies in the science, hardware and devices spaces do well. As AI levels the playing field in other areas, these companies will continue to attract strong interest and investment.”
The latest report reinforces Ireland’s position within Europe’s start-up ecosystem. Dublin ranked 40th globally and ninth among European cities in Dealroom’s Global Champions index, while Cork also featured among recognised tech hubs.
TechIreland’s findings suggest that Ireland continues to generate start-ups at scale, with strong early-stage support. Access to larger rounds and sustained investment across the full funding lifecycle remains central to strengthening long-term growth.
Top image: Brian Caulfield, chair, TechIreland
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