The Irish Venture Capital Association is seeking Government support to raise the €1 billion the industry will need to support Irish start-ups over the next five years.

“We know everyone is looking for money from the Government but from an economic point of view this would be self-funding,” says Maurice Roche, a general partner with Delta Partners and new chairman of the association.

“The new seed funds mean its a great time to start a business in Ireland,” said Mr Roche. “It’s a great time for entrepreneurs who are looking to raise €400,000- 500,000 – it’s much better than in the UK.”

The association’s estimates suggest over the next decade venture-backed firms will create 21,000 direct jobs and another 21,000 indirectly, generating about €300 million annually in payroll taxes.

Research by UCD has shown that employment in Irish venture capital-backed firms has grown at an annual rate of 18.6pc since 2003 at a time when jobs growth in the economy in general was zero.

The report, released earlier this year, also found that Irish VCs invest more in technology and knowledge-based firms than the rest of Europe. High-tech companies accounted for 92pc of all investment by Irish venture capitalists in both 2008 and 2009.

The Chairman has urged the Government to consider allowing pension funds to offset investments in Irish VCs against the pension levy.

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