Investment in technology companies in Northern Ireland reached an all-time high last year, topping £143.2 million.
The record investment was spread across 72 deals, according to Catalyst figures. NI Deal Tracker report, which also reported an average investment of £1.99 million.
This, according to the report, shows a significant increase compared to 2022, when a total of £139 million was invested across 89 deals.
Throughout 2023, there were seven deals reaching a value of more than £5 million, 23 between £1 million and £5 million, and 12 transactions between £500,000 and £1 million.
Many of the biggest deals were follow-on rounds from existing investors who were willing to back existing positions, including several from the UK Future Fund. Other important deals were closed by groups of local private investors and business angels.
Kieran Dalton, head of scaling at Catalyst, said the rise shows continued confidence in Northern Ireland's tech sector, which appears to have weathered a notable global recession.
“While the increase in venture capital investment in Northern Ireland companies was relatively modest in 2023, it remains very encouraging compared to the continued decline in activity in the UK venture capital investment market in general”.
“Equity financing in Northern Ireland has been very resilient, with many of the largest deals consisting of follow-on investments from existing investors who have been willing to back their existing positions.
“At every level, from Seed to Series B, many of the largest investments were made by a community of investors spanning individuals, companies, managers and institutions.”
Northern Ireland's technology sector has been booming in recent years, and the cybersecurity sector alone will represent a workforce of more than 2,000 people working in 100 different types of active cybersecurity companies in 2022.
Earlier this year, a new Cyber-AI Hub was announced for Belfast following an £18.9 million government investment package.
According to HSBC, venture capital funding into technology companies in Belfast increased by 221% between 2019 and 2023. Similar research by Invest Northern Ireland found that the region is the top international investment location for US cybersecurity companies, and Belfast is named one of the leading cities in the world. 15 digital economies of the future.
Catalyst noted that the growth in investment in Northern Ireland businesses comes despite a challenging economic backdrop, which has seen more than a decade of historically low interest rates come to a sudden end.
“Less than ten years ago, Northern Ireland saw just £5 million of venture capital investment in local companies in a year. Last year there were seven deals where companies raised more than that amount on their own.” said Steve Orr, CEO of Catalyst. .
“This is a testament to the quality of our startup founders, but also demonstrates a greater understanding among investors of what the Northern Ireland ecosystem has to offer.
“Northern Ireland has consistently demonstrated that it can produce innovative businesses with high growth potential worthy of capital investment and I look forward to seeing this interest continue to grow in the future.”
