Ireland's sovereign wealth fund powers tech boom
Ireland is eager to take advantage of its new-found economic solvency and is using its £20bn sovereign wealth fund to actively invest in its tech sector (Reuters/Clodagh Kilcoyne)
Last year, the FT’s Jude Webber suggested Ireland was having something of a cultural renaissance. Something similar may be going on in its tech sector thanks to the actions of its sovereign wealth fund.
A large tax windfall, courtesy of American corporations such as Apple, Google, Meta and Microsoft setting up shop in Ireland, means the Celtic Tiger – concerns about an underlying deficit aside – is at its best since it first crashed in 2008.
The state is now eager to take advantage of its newfound economic solvency: the $20bn Ireland Strategic Investment Fund has been actively investing in Irish tech-based innovation since its inception in 2014.
Most recently, ISIF announced three new transactions, investing in medical device company Proverum, life sciences VC Sofinnova Partners and venture debt provider Claret Capital.
According to its latest annual report for 2024, the ISIF had committed $10bn as part of its Irish portfolio - nearly double the $5.5bn it had committed in 2020.
A spokesperson for ISIF said there was a growing opportunity and ambition amongst Irish founders, and said the capital required to support them has been growing more quickly than the capital already available: “The opportunities in Ireland for international investors are very attractive. There has been a long-term trend of new capital and more investors entering the market over time, particularly from European and UK based investors.”
They continued: “Ireland has always been strong in life sciences, and we remain excited about new opportunities in medical devices, biotechnology and digital healthcare.”
Gary Nolan, chief executive and co-founder of Irish tech firm ZeroRisk, said he had seen a lot of investor appetite and said the company was due to expand into the US. In December 2024, ZeroRisk raised $4.8mn in a funding round led by Elkstone, an Irish family office, and according to Nolan, has received “three to four inbound expressions of interest every week since”.