Budget 2021 reaction: Indigenous tech sector welcomes move by Minister to set up new investment fund and review EIIS

Dublin: Tuesday, 13th October, 2020:
Five organisations representing the indigenous technology sector have welcomed the move by the Minister for Finance to establish a proposed new equity fund with an initial €30 million in funding to invest in domestic, high innovation enterprises. In addition, the “Alliance for an Innovation-Driven Recovery” has praised the decision by the Minister to review the Employment and Investment Incentive Scheme (EIIS), but expressed the view that this needed to happen urgently.
Members of the Alliance are Euronext; HBAN (Halo Business Angel Network); Irish Venture Capital Association; Scale Ireland and TechIreland.
Speaking on behalf of the organisation, Sarah-Jane Larkin, director general, Irish Venture Capital Association, said, “With right structures there is major scope to attract more private investment into early stage indigenous tech start-ups and build a pipeline of scaling companies that will reduce our economic dependency on Foreign Direct investment.”
She added, “According to Ibec, households saved €9.8 billion in the first seven months of 2020, holding €20 billion more in Irish banks than they owe in debt. With zero or negative bank interest rates there is a pool of funds that could help to drive an Irish economic recovery if the right EIIS incentives are available, which they aren’t at the moment.”
However, Ms Larkin added that comparatively high levels of Capital Gains Tax remain a drag on entrepreneurship in Ireland and she hoped that the Minister would address this in future.
“As the Minister has pointed out we have to prepare for a post Brexit future. This includes being competitive with post Brexit incentives which will be offered in the UK.”
Press queries to:
Sarah-Jane Larkin, spokesperson, Alliance for an Innovation-Driven Recovery and director general, IVCA,Email:sjlarkin@ivca.ie; Mob: 087 320 9209 or
Ronnie Simpson, Simpson Consulting, Email:ronnie@simpsonconsulting.ie
Mob: 086 855 9410
About the Alliance for an Innovation-Driven Recovery
Euronext is the leading pan-European exchange, covering Belgium, France, Ireland,
The Netherlands, Norway, Portugal and the UK.https://www.euronext.com/en

HBAN is Ireland’s largest network of business angels and syndicates with over
15 angel groups across Ireland and abroad.https://www.hban.org/

The IVCA is the representative body for venture capital and private equity
firms on the island of Ireland.https://www.ivca.ie/

Scale Ireland is the independent, not-for-profit representative body for Ireland’s
high-growth tech startups.https://scaleireland.org/

Tech Ireland is an independent not for profit on a mission to promote Irish and
Ireland based innovation to the world through data, content and community