Irish technology companies raised €76m from investors in the second quarter of 2010, an increase of 33% on the same period last year, according to the Irish Venture Capital Association (IVCA) VenturePulse survey. The IVCA VenturePulse survey measures funding raised from domestic and international venture capital funds, from AIB and Bank of Ireland seed capital funds, Enterprise Ireland and from private investors including angels.
Private Irish companies are set to discard UK accounting rules and adopt International accounting rules – so called IFRS for SME. Planning for the change is essential if companies are to continue to have access to credit and to minimise a corporation tax bill. A newly published guide, produced by ACCA (Association of Chartered Certified Accountants) identifies the major accounting and tax differences and the opportunities the change will bring. The new rules will apply to companies as large as Dunnes Stores and Quinn Insurance and as small as the companies operating the local corner shop. Quoted companies already use IFRS, but so called “Non public Interest” or unquoted companies will have to adapt IFRS for SME in 2012/2013.
In the December 2009 budget, the Minister for Finance announced the setting-up of an office to help ensure that small and medium-sized enterprises (SMEs), sole traders and farm enterprises have access to credit from the banks who are participating in the NAMA scheme.
The Credit Review Office has been established to provide a process to review decisions by the participating banks to refuse, reduce or withdraw credit facilities. SMEs, sole traders and farm enterprises are eligible to apply to the Credit Review Office for a review of decisions by participating banks to refuse or reduce credit facilities (including applications for restructured credit facilities) up to €250,000.
On the 22nd July 2010 Feargal Ó Móráin, Director of Corporate and Investment Services at Enterprise Ireland, launched the Enterprise Ireland Seed & Venture Capital report for 2009. Despite the difficult climate for business, Irish venture capital firms supported by Enterprise made 87 investments with a value of €52 million in 2009, marking a 53% increase on the value of investments in 2008. The number of new companies invested in during the year, at 25, also represented a significant increase of 47% on the previous year.
Irish companies raised €288m in 2009, up 18.6% on the previous year according to the Irish Venture Capital Association (IVCA) Venture Pulse survey.
“This strong performance was against a backdrop of a severe credit crunch and global banking crisis,” commented John Tracey, chairman IVCA and CEO, TVC Holdings plc. He said that the record year in Ireland compared with significant falls in activity levels of between 50-70% in US and UK markets which were back to levels experienced in the late 1990s.