Venture capital funding into Irish small and medium-sized enterprises (SMEs) fell by 10% year-on-year to €578.4 million in the first half of 2026, according to the latest VenturePulse survey published by the Irish Venture Capital Association (IVCA) on 13 September 2026.

Data from the survey showed that international investors provided 82% of all capital raised during the six-month period, representing one of the highest levels of reliance on overseas funding on record. The H1 figure was heavily concentrated in top-tier transactions, with two companies—fintech firm Fonoa, which raised €94.4 million, and cybersecurity firm Cloudsmith, which secured €61.5 million—accounting for almost 44% of total investment.

IVCA chairperson Richard Watson raised "flashing red warning signals" over Ireland's extreme exposure to global financial market shifts and geopolitical turmoil. Watson warned that domestic tech start-ups and SMEs face growing risks as international venture capital is diverted into massive US artificial intelligence deals, noting that two frontier AI firms, Anthropic and OpenAI, absorbed 43% of all global start-up funding in the first half of the year.

Despite the overall half-year decline, investment in the second quarter of 2026 rose to €356.7 million, marking a year-on-year increase of more than 200% compared to a depressed Q2 in 2025. However, IVCA data indicated that the quarterly rebound was driven almost entirely by rounds exceeding €30 million, while funding rounds under €5 million declined, underscoring ongoing capital constraints for early-stage Irish businesses.