Venture capital firms invested €200m in Irish, women-led start-ups last year, according to Pitchbook’s ‘Europe All In’ analysis.
It represents a 39% increase year on year – and it makes Ireland number two in Europe for investment in women-led start-ups on a per capita basis.
Ireland also punches above its weight in terms of the volume of investments, with 83 deals agreed last year. That is more than was recorded in many larger countries, including the Netherlands, Italy and Belgium.
According to Jenny Melia, executive director at Enterprise Ireland, the results are down to the nature of the start-up community here.
“I think first of all it’s the calibre of the startups coming through; we have startups coming through in some really interesting areas in emerging technology where market trends are growing upwards,” she said. “We have teams with good IP [intellectual property] good leadership and good talent.
“The second piece that’s really important is the investment in the ecosystem over the years.”
This, Ms Melia says, has been a key focus of Enterprise Ireland for over a decade now.
In 2010 only 7% of start-ups were women-led – however a number of initiatives introduced since then has led to that proportion growing to 29% by 2023.
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“That comes down to the investment across the funding ecosystem,” she said “The investment in leadership development and capability, and I think the work that has taken place right across the ecosystem to ensure that we’re putting the best mentors in front of our female founders and that we are supporting them on networking.”
Ms Melia said that research EI conducted in recent years shows that around 70% of the firms they have invested in are still growing. However she also said it was important to realise the high risk nature of early-stage investment.
“This is why the State is getting in behind them to support this risk,” she said. “It’s some of the highest risk businesses that you’re getting behind at the beginning… they really go on to become what I call the rock stars.”
While the level of investment in women-led enterprises is improving – and female enterpreneurs are gaining ground on men – there is still a sizable gap between the two.
Ms Melia said there is clearly still work to be done – but that ultimately comes down to supporting women to take the next step in their businesses.
“We’re working very closely with our partners in the Irish venture capital community and we have introduced a road to VC investment programme,” she said. “It’s all around helping female founders to become investment-ready.”
