European Investment Fund invests €20m in Irish SMEs

By Daniel Lanyon on Monday 11 September 2017

Alternative LendingDigital BankingSavings and Investment

The new cash will be a boon for the Irish early stage tech industry.

The new cash will be a boon for the Irish early stage tech industry. 

The European Investment Fund (EIF), with the support of InnovFin Equity and COSME, is investing €20m in ACT Venture Capital’s latest fund, ACT V, in Ireland.

The deal aims to finance around 30 “high potential” early and stage companies in the information and communication technology sector in the coming decade. By mobilising other investors, including funds from the private sector and EIF, this equity investment by EIF should lead to overall investments of more than €90m for primarily Irish SMEs looking to expand internationally.

The investments made by the new fund will focus on expansion financing in high-growth, export-oriented companies in sectors such as software, internet, digital media, communications and mobile.

The fund includes investment from the Ireland Strategic Investment Fund (ISIF), Enterprise Ireland (EI), Allied Irish Banks (AIB) and private investors, and aims to back 15-18 expansion companies over the next four years and will invest up to €7 million in each company.

John Flynn, Managing Director of ACT Venture Capital, said “This fund will help to sustain Ireland as one of Europe’s most active locations for technology venture funding”. Mr Flynn added that “

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