An artificial intelligence focus and geopolitics saw U.S. venture capital towards Ireland dry up in 2025 and helped cause a 46% quarterly slump in investment in Irish tech firms and startups.

Funding for the last three months of 2025 was down to €291M, according to the VenturePulse report by the Irish Venture Capital Association in association with William Fry. On an annual basis, the figure fell by 23% to €1.1B, the IVCA said.

“It’s been a roller coaster year for Irish SMEs looking to raise capital,” IVCA Chair Caroline Gaynor said in a statement, adding that there had been an “undoubted Trump effect” after uncertainty caused by tariffs led to the worst second quarter for a decade.

In addition, the fourth quarter saw a 71% retreat from the Irish market by international investors from €470M to €132M.

"This may be due to hesitation and uncertainty by U.S. venture capital firms due to a number of factors including an America first focus, negativity from across the Atlantic about Europe, and the impact of a weakening dollar,” Gaynor added.

However, she said she remained positive about Irish entrepreneurs looking to raise capital this year and insisted that current geopolitical events have highlighted the need for Ireland to be more self-reliant and have more access to local capital to fund the domestic tech sector.

The decline in overseas funding in 2025 was reflected in a one-third fall in larger deals in the €30M-plus category to €541M. In the fourth quarter, this dropped more than two-thirds, 69%, to €111M. Funding in the €10M to €30M range for the year overall also fell, declining by 14% to €269M.

The top five deals in the final quarter saw quantum computing company Equal 1 raise €30M; Shorla Oncology, speciality pharmaceuticals, €25M; Aerska, biotech, €17M; Fresco, smart kitchen platform, €15M; and Luminate Medical, healthcare technology, €14M.

Life sciences companies attracted the most funding last year, raising €461M, or 40% of the total, followed by software with €156M, cybersecurity with €136M, AI and machine learning with €104M and fintech with €96M across a total of 186 Irish deals completed, down from 217 in 2024.