Minister for Enterprise, Tourism and Employment, Peter Burke, has released a new report titled “Market Demand for and Supply of Scaling Finance in Ireland.” The report highlights a significant shortfall in equity financing available to Irish enterprises at the scaling stage of their development. This financing gap is estimated at approximately €1.1 billion over the next two to five years.
Prepared by SQW Economic Research Consultants for the Department, the report finds that demand for equity financing among scaling firms has been rising in Ireland over the past decade and is likely to grow further. The shortfall is particularly evident for funding deals in the €5 million to €10 million range, as well as for companies operating in capital- and R&D-intensive sectors. These often include innovative startups and firms in industries where product development takes considerable time and requires patient, long-term investment.
The report outlines several factors contributing to the financing gap, such as the difficulty firms face in securing capital aligned with their growth trajectories. Minister Burke acknowledged the importance of addressing this issue, noting that access to capital is a major barrier to companies reaching their full potential and expanding both domestically and internationally.
He emphasized that the findings of the report will support the development of focused policy measures. These new initiatives aimed at closing the finance gap are expected to be brought to the Government later this year.
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