OPINION: Ireland is losing Irish companies because they can’t scale here

When Ireland’s Government recently announced Budget 2027, it focused on addressing a problem that has beset Ireland’s startup community for decades.

A €1 billion Ireland Strategic Investment Fund (ISIF) scaling programme would seek to provide startups with greater access to growth capital. The need was made particularly stark after, in 2025, the Department of Enterprise grimly projected a €1.1 billion equity-financing gap for Irish enterprises by 2030.

The Budget recognised a problem that startups here have known about for years: Ireland is excellent at getting businesses started, but too many founders struggle to raise the money they need to scale and expand. 

Ireland’s scale-up funding gap

This is particularly the case for those seeking Series B investment and beyond. In fact, a 2026 survey from Scale Ireland shows that three-quarters of Irish startup founders find it difficult or very difficult to attract private capital.

Their response tends to be one of two options: sell to a foreign acquirer or move to bigger markets like the UK or US where there is a much larger pool of investors. And why wouldn’t they? It makes sense for the survival and growth of their company.

It does, however, raise a bigger question for Ireland: how do we help more companies grow internationally while keeping their roots here? 

Turning investment promises into action

The new ISIF programme is aimed at addressing the right issue, but its impact will depend on how it works in practice. What companies can access it, how will the money be deployed and on what terms, and how much process will founders have to navigate? These are the important questions that need to be answered with tangible solutions.

The proposed €1 billion is exciting, but only if the timing and application are right. In 2025, the European Commission revealed that Ireland performed below the EU average for innovation-friendly regulation, highlighting the need for better and clearer support infrastructures. Therefore, it is crucial to know if capital will be available at the point when a company needs it.

Budget 2027 also extends existing startup and small business investment schemes. Again, this is most welcome but also sort of a non-announcement. Of course we want these schemes to continue, but the extension does not address the underlying problems. In reality, processes remain complex, funds are slow to be administered and it is unclear who qualifies.

The Capital Gains Tax reduction from 33% to 31% is another positive signal. But a two-point reduction on its own is unlikely to close the scale-up funding gap. The wider goal should be to encourage more investment in Irish companies and give founders the confidence to reinvest in growth.

Growth requires more than capital

Founders need practical improvements: less time spent navigating national requirements, clearer processes and a more straightforward path to customers and investors in other member states. Europe has the scale to be a powerful growth market; it needs to work more like one.

Capital is vital, but it is not the only ingredient required for a growing company. Founders also need customers, experienced people, local knowledge and trusted connections. Starting a business can be lonely. A supportive community can help founders find advice, collaborators and opportunities through the conversations that happen when people spend time together.

Ireland has built a strong base of entrepreneurs and international connections. According to the European Commission, Ireland sits 7th of 27 EU member states on the European Startup and Scaleup Scoreboard, highlighting the potential in our competitive startup environment.

Helping Irish startups scale from home

The next task is to build the conditions that help more of those businesses raise later-stage capital and reach international markets from here. The Budget’s announcements are a start. Their success will be measured by whether companies can use the supports in time, whether private investment follows and whether more Irish businesses can scale without having to leave to do so.

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