The European Investment Fund (EIF), with the support of InnovFin Equity and COSME Equity Facility for Growth (EFG), is investing €20m in ACT Venture Capital‘s latest fund, ACT V, in Ireland.
The agreement will allow ACT to finance around 30 high potential early and expansion stage companies in the information and communication technology sector in the coming decade.
By mobilizing other investors, including funds from the private sector and EIF, this equity investment should lead to overall investments of more than €90m for primarily Irish SMEs looking to expand internationally.
ACT’s new fund will focus on expansion financing in high-growth, export-oriented companies in sectors such as software, internet, digital media, communications and mobile.
The fund includes investment from the Ireland Strategic Investment Fund (ISIF), Enterprise Ireland (EI), Allied Irish Banks (AIB) and private investors, and aims to back 15-18 expansion companies over the next four years and will invest up to €7m in each company.
Some of these companies will come from ACT’s seed fund which backs early-stage companies at a rate of 8-10 deals per year and having already completed over 50 such deals.
Led by John Flynn, Managing Director, Debbie Rennick, John O’Sullivan, Conor Mills, Tomas Miranda, and Gavin Bourke, ACT Venture Capital is a technology-focused venture capital investment firm backing entrepreneurs starting out and established teams scaling their growth in markets including application software, IT infrastructure, communications, Internet and mobile. To date, the firm has raised over €450m across multiple funds.