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

Ireland's government recently unveiled Budget 2027, targeting the challenges plaguing the country's startup ecosystem for years. A key component, a €1 billion Ireland Strategic Investment Fund (ISIF) scaling programme, aims to enhance startups' access to growth capital. This initiative responds to a critical issue: Ireland excels at starting businesses but struggles with providing sufficient funding for scaling up, particularly for companies seeking Series B investments and beyond.

A 2026 Scale Ireland survey revealed that three-quarters of Irish startup founders face difficulties attracting private capital, often opting to sell to foreign acquirers or relocate to larger markets such as the UK or US. While this makes sense for business survival and growth, it raises a significant question: how can Ireland assist more companies in scaling while preserving their local roots?

The new ISIF programme seeks to address this concern, but its effectiveness hinges on practical implementation. Key questions include which companies can access the fund, how the money will be deployed and under what terms, and the level of complexity founders will encounter in the process. The proposed €1 billion is promising, but its success depends on timely availability and streamlined application processes.

Ireland's performance in innovation-friendly regulation, as noted by the European Commission, lags behind the EU average, necessitating better and clearer support infrastructures. The budget also extends existing startup and small business investment schemes, which is welcome but does not tackle underlying issues. Processes remain cumbersome, funds are slow to disburse, and qualification criteria remain unclear.

Another positive aspect of Budget 2027 is the tax reduction on capital gains from 33% to 31%. However, this two-point decrease alone is unlikely to bridge the scale-up funding gap. The broader aim should be to attract more investment in Irish companies and give founders the confidence to reinvest in growth. Beyond capital, founders require practical improvements: reduced time spent navigating national requirements, clearer processes, and easier access to customers and investors in other member states.

Europe, with its scale, has the potential to be a powerful growth market; it needs to function more like one. While capital is crucial, it is not the sole ingredient for a growing company's success. Founders also need customers, experienced individuals, local knowledge, and trusted connections.

Ireland boasts a robust base of entrepreneurs and international connections. According to the European Commission, Ireland ranks 7th out of 27 EU member states on the European Startup and Scaleup Scoreboard, indicating the country's competitive startup landscape. The next step is to establish conditions that enable more startups to secure later-stage capital and expand internationally from within the country.

The Budget's announcements are a beginning, but their success will be determined by whether companies can utilize the supports in a timely manner, if private investment follows, and whether more Irish businesses can achieve scaling without relocating.