Venture capital is designed for high-growth, scalable businesses with innovative products or services; founders should look for meaningful support alongside money

13th October 2025, Dublin:

Venture capital investment into Irish SMEs hit a record €532.8 million in Q1 2025 a clear vote of confidence in Ireland’s innovation economy. But by Q2, funding fell sharply to €112.6 million, reminding founders that markets fluctuate, while fundamentals endure.

Elkstone, CEO & Co-Founder Alan Merriman, featured in recent article with The Irish Times highlights: "VC is suited to companies in the innovation economy where investors are willing to take higher risks for the chance of much higher rewards. VC is really about backing early-stage companies with the potential to become category leaders.”

More than money, the best investors bring strategic support, networks, and experience helping founders navigate growth, talent, and governance. The right VC should accelerate your company’s journey, not just its valuation.

Alan Merriman added, "The most interesting aspect of venture is that the founders choose who invests. Founders talk to each other, so reputation matters hugely. The best VCs help with go-to-market strategies, recruitment, HR, legal advice and other operational challenges. The expectation is that they add meaningful support, not just write a cheque. "

Enterprise Ireland’s €250 million Seed and Venture Capital Scheme (2025–2029) will boost investment in high-growth areas like AI, fintech, and climate tech, further strengthening Ireland’s startup ecosystem.

So, what should founders do if they’re considering a VC raise?

“The most important step is due diligence: really understand which VCs are likely to be interested in your sector,” “Preparation is key. Founders need a strong deck and a compelling story. A warm introduction makes a big difference, as it reflects well on the founder and opens doors faster. And it’s important not to take the first money offered – choosing the right partner is critical.” Alan Merriman emphasised.

Key takeaways for founders:

  • Do your homework – find investors who align with your vision.

  • Tell your story well – clarity and ambition win attention.

  • Be selective – the right partner adds value beyond capital.

At Elkstone, we believe venture capital is a partnership, not a transaction. The first cheque might open the door, but the right one helps you build something lasting.

Read full article The Irish Times