Investment firm Elkstone has closed a €100m (£87m) early-stage fund, with an anchor commitment from the Ireland Strategic Investment Fund.
It plans to invest between €1m (£869,000) and €2m (£1.7m) in Irish companies over the next three years.
Elkstone chief executive, Alan Merriman, said: “We are delighted to have delivered on our promise to the Dept of Finance and our clients to bring about a unique EIIS venture fund providing access to support the venture funding ecosystem here.”
The investment firm has already allocated over €10m (£8.7m) of the early-stage fund.
“Whilst the macro backdrop is undoubtedly challenging, it is a good time to be investing and we are very positive on the outlook for disruption and innovation,” added Merriman.
Previous Elkstone investments include Irish unicorns Flipdish and LetsGetChecked.
While the fund is only for the Republic of Ireland it will continue to back UK and Northern Ireland startups through its Venture Club.
Elkstone’s venture portfolio UK investments include manufacturing software CloudNC, ETF platform HANetf and bicycle insurance startup Laka.
“ISIF is a strong supporter of indigenous Irish businesses that have ambitions to scale and target international markets,” said Nick Ashmore, director of the Ireland Strategic Investment Fund.
“This fund expands our reach in early-stage venture capital and gives Irish businesses a valuable new option for attracting the capital they need to grow.”