“We have also seen transactions structured regarding selling more than raising funding,” he says. He says more minority deals will be done at lower valuations as people wait to do that larger raise. The structure of funding deals had also changed due to the lower values, Fitzell says. This was typically in the venture capital space, he added. This was typically among early-stage startups that raised a few years ago at massive valuations but were not “cash generating”. These companies had now used the money they raised previously and needed to return to the market for more. With those lower valuation, some firms have been forced into the dreaded “down round”, where they raise at a lower valuation than previously, Fitzell says. “It is in the more resilient areas where they are not subject to consumer demand or big input-cost inflation,” he says. He says the “better companies” are being competed for strongly, strengthening their valuations, particularly in healthcare, renewable energy and software. ‘The high levels of “dry powder” waiting to be deployed ensure financing is available,’ says Renatus Capital Partners director Brendan Traynor But it was a year of contrasting seasons, with rapid growth in the first nine months being offset by a recessionary last quarter as the tech world began to tighten its belt. It said Irish technology firms saw €1.3bn in venture capital in 2022. Last week, figures from the Irish Venture Capital Association pointed to signs of change. While Chupi was able to secure its funding, many believe we are facing an uncertain funding market for private firms in 2023. Everyone can be friends on a good day, but can you work through it and ensure everyone has the same strategic vision and goals? We really felt that with the partners.” “The overriding thing was ensuring we chose the right partner. We felt like as we were raising, things kept moving. Instead of seeing that, the world continued to shift underneath us. Everyone had emerged from Covid, expecting the ‘roaring twenties’ and stability. ‘People got used to cheap, almost free, money over the last couple of years. “I sit across several business communities, where other people were raising and flagging how challenging it was. While it was a positive story for Sweetman, she says raising funds in 2022 was a more challenging experience than for those who raised money in 2021. It will introduce new technology and open two stores in Ireland and the UK. She raised €3.75m in new equity and debt investment from BVP, Abbey International and Permanent TSB to fuel her ambitious growth plans for Ireland and the UK. Sweetman succeeded in her mission to land the funding and find the right partners to back her vision for Chupi. “As the year went on, the conversations changed. I have advised businesses as they were raising, but it was my first time being in the hot seat,” she says. For me, I have never sat on that side of the table. Russia’s war in Ukraine started setting off a bout of market uncertainty – one of the things no investor enjoys. As Sweetman started her first funding journey, things changed.
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