Investment in Ireland tech startups surge as Silicon Valley lags

Global Business

Investment in Ireland tech startups surge as Silicon Valley lags 1

In the last year international investment into Irish tech start-ups has surged. More than $270 million poured into eight companies, double the amount raised by the top Irish tech firms the previous year.

CCTV’s Lourda Sexton reports from Dublin.

Investment in Ireland tech startups surge as Silicon Valley lags

Investment in Ireland tech startups surge as Silicon Valley lags

In the last year international investment into Irish tech start-ups has surged.

Tech firms in Ireland started to compete more seriously with international rivals with the majority of the new funding coming from U.S. and European venture capital firms look for alternatives to overheated U.S. tech stocks.

Customer communication platform Intercom is leading the way, earlier this month they announced their latest round of funding was $50 million.

“We are really focused on using the money to build a product that our customers wants to use. We have 10,000 paying customers around the world now. I think that’s what is really differentiating the successful companies these days, those that are focusing on product and building something that people want rather than the marketing and sort of hyping things up,” Intercom Managing Editor John Collins said.

The boost in funding comes as many Silicon Valley tech companies are experiencing sharp falls in their valuations.

“In Ireland and Europe in general, there is better value in terms of company valuations,” Atlantic Bridge Capital Partner Gerry Maguire said. “I think in Silicon Valley some of the valuations in certain sectors have gotten a little bit higher and there may be a little bit of a pull back and maybe some of those investors are taking more time to make decisions and I think that is why some of those investors like Ireland.”