Funding for Irish tech startups slumps as AI hoovers up investors' resources

Funding for Irish tech, biotech, and biopharma startups and scaleups fell 58% in the first quarter to €222m. Global startup investment totaled about $300bn in the same period, with AI accounting for close to 80% of that amount. As investors concentrated on AI, less capital became available for Irish startups focused on fintech, security, and software-as-a-service. In the first three months of 2026, life sciences received 54% of Irish startup investment, while fintech attracted €28m and software received €27m. Funding declined across most deal sizes, with only deals under €1m increasing. The largest deals included Neurent Medical (€62.5m), Aerska (€33m), Evervault (€21m), and Circit (€20m).

"Funding into tech, biotech and biopharma startups and 'scaleups' here fell by 58pc in the first quarter to €222m. The slump comes as global figures from Crunchase show AI accounted for close to 80pc of the record $300bn invested in startups during the same period. The financial market's infatuation with AI resulted in less money being available for Irish tech startups, which have been focused on more conventional financial technology (fintech), security and software-as-a-service (Saas) companies."

"During the first three months of 2026, life sciences firms accounted for over half (54pc) of the money invested in Irish startups, while fintech companies attracted just €28m and software companies received €27m. Over the last year, Irish tech companies have tried to incorporate AI into their product suites and overall branding, as the technology takes centre stage in the world's attention."

"According to the IVCA figures, funding declined across all deal-size bands except transactions of less than €1m. In the €3m to €5m range, investment fell 77pc to €7.9m from €35m a year earlier. Deals worth between €5m and €10m dropped 62pc to €16.5m from €43.8m over the same period."

"The IVCA data shows that the top five deals of the quarter were the life science firms Neurent Medical (€62.5m) and Aerska (€33m), followed by the encryption firm Evervault (€21m) and the fintech firm Circit (€20m). Industry figures tried to put a positive gloss on the numbers. "While funding fell across most deal sizes, the outcome must be seen in the context of an exceptionally strong start to last year, when Irish firms raised more than half a billion euro, which was a record for a first quarter," said Caroline Gaynor, chairperson of the IVCA."

Read at Irish Independent