Minister for Enterprise, Tourism and Employment, Peter Burke T.D., has published a new report, Market Demand for and Supply of Scaling Finance in Ireland, which highlights a €1.1 billion gap in equity financing for Irish firms seeking to scale and expand internationally over the next 2–5 years.

The study, commissioned by the Department and conducted by SQW Economic Research Consultants, found the gap is particularly acute for:

• Deals in the €5m–€10m range
• Capital and R&D intensive sectors (e.g. innovative start-ups)
• Firms requiring patient, long-term investment

Key challenges identified include undercapitalisation at earlier stages, difficulties in meeting scaling metrics, lack of specialist personnel to secure later-stage funding, and risk aversion. On the supply side, most Irish funds are too small to support scaling strategies or lead larger deals. The average fund size in Ireland is just under €70 million and Irish VC funds are even smaller at €60 million on average – far below the €200m–€300m range considered optimal for executing a scaling strategy.

Minister Burke said that these findings will guide the development of targeted policy measures to help Irish businesses grow into larger international players, with proposals to be brought to Government later this year. The full report is available here.