The next five years of the Seed and Venture Capital Scheme will have a record allocation of €250 million, aimed at increasing the availability of risk capital for start-ups.

It brings to €700m invested since 2013 in the scheme, which is managed by Enterprise Ireland, and represents a 42 per cent increase on previous rounds.

A recent review of the scheme’s operation between 2013 to 2022 by UK-based advisory firm SQW found the scheme had increased the availability of risk capital and has garnered significant private investment.

The review found that the equity ecosystem in Ireland was not self-sustaining so government support via Enterprise Ireland was still required.

To date, Enterprise Ireland has invested over €700 million in the scheme, which has leveraged funds totalling €3.3 billion.

Dublin-based digital health start-up Wellola has used the scheme to raise capital for its patient care and communication platform Portasana, which has has raised approximately €4m in funding and been deployed at organisations such as Leeds Teaching Hospital NHS Trust and Birmingham Community NHS Foundation Trust.

Minister for Enterprise, Trade and Employment Peter Burke said the 42 per cent increase in funding over the existing scheme will enable Enterprise Ireland to create larger funds that will be invested in Irish firms in key areas such as green tech, AI and life sciences, and others.

Mr Burke said the scheme had helped Enterprise Ireland become the largest venture capital investor in Europe over the last 30 years.

Enterprise Ireland divisional manager for investment services Leo McAdams said access to finance through Seed and Venture Capital Scheme had played an important role in developing a talented pipeline of innovative, high-growth Irish-owned companies.

The overall vision of the Seed and Venture Capital Scheme is to increase the availability of risk capital for start-ups to support economic growth through continued development of the seed and venture capital industry in Ireland to achieve a more robust, commercially viable and self-sustaining sector.