Irish SME Venture Funding Falls 58% in First Quarter of 2026

Irish SMEs raised €221.7 million in venture capital funding during the first quarter of 2026, according to the latest Venture Pulse survey from the Irish Venture Capital Association (IVCA).

The total represents a 58% decline from Q1 2025, when more than €500 million was raised in what was a record opening quarter for the Irish venture market.

Life sciences dominated investment activity, accounting for more than half of all funding raised during the quarter. Fintech companies attracted 13% of investment, while software firms secured 12%.

The largest funding round was raised by Neurent Medical, which secured €62.5 million. Aerska followed with a €33 million fundraising round.

While artificial intelligence continues to attract significant venture capital globally, the Irish market remains largely driven by life sciences. According to IVCA Director General Sarah-Jane Larkin, AI is increasingly embedded across Irish companies seeking investment, rather than appearing as a standalone investment category.

The data also shows a significant slowdown in mid-sized funding rounds. Deals valued between €5 million and €10 million fell by 62% year-on-year, while deals between €3 million and €5 million declined by 77%.

Sarah-Jane Larkin said the figures reflect Ireland’s continued reliance on overseas capital and highlighted the importance of strengthening domestic funding sources.

Recent measures aimed at increasing indigenous investment capacity include Enterprise Ireland’s expanded investment activity and the Government’s €250 million Seed and Venture Capital Scheme.

Q1 2026 Irish Venture Funding Snapshot

• Total funding raised: €221.7 million

• Year-on-year change: -58%

• Largest deal: Neurent Medical (€62.5 million)

• Second largest deal: Aerska (€33 million)

• Life sciences share of funding: More than 50%

• Fintech share of funding: 13%

• Software share of funding: 12%

• Change in €5m-€10m deals: -62%

• Change in €3m-€5m deals: -77%

Source: Irish Venture Capital Association Venture Pulse Survey Q1 2026