Venture Debt - Ireland | Statista Market Forecast

The total capital raised in the Venture Debt market market in Ireland is projected to reach US$65.85m in 2024.
Traditional Venture Debt dominates the market in Ireland with a projected market volume of US$62.85m in 2024.
In global comparison, most capital raised in Ireland will be generated the United States (US$22.4bn in 2024).
Ireland's Venture Debt market is gaining traction among startups seeking non-dilutive funding options to fuel their growth in the Capital Raising landscape.

Definition:

The Venture Debt market refers to a form of equity and debt financing combination, which is used to finance early stage and growth stage capital-backed companies. Besides equity funding rounds, business can seek venture debt that minimizes ownership dilution and governance requirements to increase the cash runway to reach the next milestone or even provide a cushion for delays.

Structure:

The market consists of two segments:
- The Traditional Venture Debt market refers to a form of debt financing that is often provided to venture-backed companies to either buy new equipment, meet a deficiency of short-term capital, or support expansion plans.
- The Growth Venture Debt market refers to a form of debt financing that is often structured with warrants or options, which provides a rapid development stage in which businesses can support their long-term oriented growth plans.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Key players in this market are companies such as Wells Fargo and Hercules Capital.

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Venture Capital
Venture Debt funds are sponsors by governments

The Venture Debt market in Ireland has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Venture Debt market in Ireland have been shifting towards alternative financing options, such as venture debt, due to the flexibility and lower cost compared to traditional forms of financing.

Entrepreneurs and start-ups in Ireland are increasingly looking for ways to fund their growth without diluting their equity, and venture debt provides an attractive solution. Additionally, venture debt allows companies to extend their cash runway and fund their expansion plans more effectively. Trends in the market indicate a growing demand for venture debt in Ireland.

The start-up ecosystem in the country has been thriving, with a significant increase in the number of tech companies and innovative ventures. These companies often require additional capital to fuel their growth, and venture debt has emerged as a popular financing option. Furthermore, venture capital investors in Ireland are increasingly partnering with venture debt providers to offer a comprehensive funding package to start-ups, which further drives the demand for venture debt in the market.

Local special circumstances in Ireland also contribute to the development of the Venture Debt market. The country has a favorable business environment, with a supportive government, strong infrastructure, and a skilled workforce. These factors attract both domestic and international entrepreneurs, leading to a vibrant start-up ecosystem.

Additionally, Ireland has a well-established network of venture capital firms and angel investors, which provides a conducive environment for venture debt providers to operate and grow. Underlying macroeconomic factors have also played a role in the growth of the Venture Debt market in Ireland. The country has experienced sustained economic growth in recent years, with a strong focus on innovation and technology.

This has created a favorable environment for start-ups and has increased the demand for venture debt as a financing option. Furthermore, low interest rates and favorable lending conditions have made it easier for venture debt providers to offer competitive terms to their customers. In conclusion, the Venture Debt market in Ireland is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

The shift towards alternative financing options, the growing demand for venture debt, the favorable business environment, and the sustained economic growth in the country have all contributed to the expansion of the market. As the start-up ecosystem in Ireland continues to thrive, the demand for venture debt is expected to further increase in the coming years.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.