Funding for Irish tech startups has dropped sharply as global investors increasingly channel capital into artificial intelligence, according to new data from the Irish Venture Capital Association (IVCA), highlighting a major shift in early-stage technology investment trends.
The latest figures show that total investment into Irish tech, biotech, and biopharma startups fell 58% to €222 million in the first quarter of 2026. The decline reflects one of the steepest downturns in recent years, driven largely by a global reallocation of venture capital toward AI-focused companies.
At the global level, AI is reported to have attracted close to 80% of a record $300 billion invested in startups during the same period, underscoring the sector’s dominant position in the current funding cycle. This surge has reduced available capital for other technology segments, including fintech, cybersecurity, and SaaS startups in Ireland.
Despite the overall decline, life sciences companies accounted for 54% of all Irish startup funding in the quarter, continuing their strong performance relative to other sectors. In contrast, fintech startups raised just €28 million, while software companies secured €27 million.
The data also shows a significant slowdown across mid-sized funding rounds. Investments in the €3 million to €5 million range dropped 77%, while deals between €5 million and €10 million fell 62% compared to the previous year. Smaller deals under €1 million were the only segment to show relative resilience.
Among the largest deals of the quarter were Neurent Medical at €62.5 million, Aerska at €33 million, Evervault at €21 million, and Circit at €20 million, reflecting continued investor interest in select high-growth Irish companies.
Industry leaders say the downturn should be viewed in the context of an unusually strong previous year rather than a structural collapse in the market. IVCA Chairperson Caroline Gaynor noted that international investors accounted for 85% of total capital raised, highlighting Ireland’s continued reliance on global funding flows.
However, concerns remain about geopolitical uncertainty and its potential impact on investor sentiment in the coming quarters. Industry representatives also pointed to government-backed initiatives, including increased investment limits by Enterprise Ireland and a €250 million Seed and Venture Capital Scheme, as potential stabilising factors for early-stage startups.
Overall, the data suggests that while Ireland’s startup ecosystem remains active, it is increasingly shaped by global AI-driven investment priorities that are reshaping capital distribution across the tech sector.
