Irish VC body urges government to mobilise €1 billion for startups, modelled on Denmark

The Irish Venture Capital and Private Equity Association (IVCA) is calling on the government to establish a government-convened fund-of-funds that could mobilise roughly €1 billion in private institutional capital for Irish startups and scale-ups. The proposal is included in the association's Pre-Budget Submission 2027 and would see the state help aggregate commitments from pension funds, insurers, banks and other institutional investors.

IVCA Director General Sarah-Jane Larkin said venture capital investment fell by almost 60% in the latest quarter to just over €221 million, with 85% of that capital coming from international investors — a sign, she said, of a market with strong companies and investor interest but heavy reliance on external capital conditions.

Founded in 1985, the IVCA represents Ireland-based venture capital and private equity firms along with their investors and advisers. It says its members have channelled more than €10 billion into innovative Irish companies over the past decade, spanning technology, life sciences, MedTech and other export-focused sectors.

The association argues that Ireland's startup ecosystem lacks sufficient domestic capital at later funding stages, identifying gaps at late Seed, Series A, Series B and subsequent scale-up rounds. As a result, it says, Irish companies increasingly turn overseas as their capital needs grow.

The proposed vehicle draws on Denmark's Dansk Vækstkapital model, which IVCA Chairperson Richard Watson said has already channelled more than €1.5 billion into Danish companies and could be replicated quickly in Ireland. Under the plan, the government would act as convener and possibly anchor investor through the Ireland Strategic Investment Fund (ISIF) or a new vehicle, while investment decisions would remain with private fund managers.

The IVCA also proposes reforms to pension rules, including an opt-in option for new entrants to Ireland's auto-enrolment pension system to direct a small share of contributions toward funds supporting Irish enterprise. It stressed the plan would not require major new public spending, instead using a limited portion of existing ISIF capital to catalyse much larger private investment flows.

The association points to similar efforts elsewhere in Europe, including France's Tibi Initiative, the UK's Mansion House reforms, Germany's Deutschlandfonds, the Dutch Venture Initiative and the European Investment Fund's European Tech Champions Initiative. Whether the proposal advances now depends on whether the Irish government incorporates it into Budget 2027.