Calming of the surge in funding since last year represents ‘normalisation rather than retreat’ says PitchBook.
Irish AI companies have raised nearly €950m in venture funding since the start of 2025, but consistent with previous findings, funding is largely concentrated among later-stage companies.
According to fresh data from PitchBook, AI businesses in the country raised a record €691.3m across 107 deals in 2025, which was followed by 75 deals in 2026 that grabbed €256m.
Multiple blockbuster deals crossing €100m each contributed to last year’s total value, driving the overall median AI deal size to a record €2.4m. That number settled down to €1.6m year-to-date in 2026. Though this is still higher than any of the averages before 2025.
The reduction in total deal value compared to last year represents “normalisation [of funding] rather than retreat”, says PitchBook, which found that the funding surge settled this year after a “banner year for investment”. Ireland currently ranks at the ninth spot in Europe for AI VC deal count, and second on per-capita basis.
According to the market intelligence platform, VC funding into AI is largely going to fewer, larger rounds in more established companies.
In 2025, the value of late-stage AI VC deals reached a record €380.5m – compounding 2.5 times its 2024 figures – while venture-growth investment reached €179m, nearly doubling from last year. This follows into 2026, with 18 late-stage deals nabbing €135.5m, while €61m was invested into three venture-growth rounds.
Major rounds last year include e-commerce analytics platform Wayflyer’s €161.8m raise and workflow software platform Tines’ €120.7m Series C. Meanwhile, among the largest rounds this year is Fonoa, which raised €94.1m to expand its tax compliance automation capabilities and CameraMatics, which raised €49m for its vehicle safety and fleet management software.
The report also finds that Ireland’s AI activity extends beyond enterprise software into healthcare, medtech, biotech and other applied sectors. Healthcare-related businesses feature among the largest Irish AI VC deals since 2020, including Fire1 and Deciphex.
According to PitchBook, funding concentration in larger companies means VCs are supporting already proven, de-risked businesses. Enterprise Ireland says that this shift is both a direct response to macroeconomic volatility and a reflection of Ireland’s AI landscape where more companies have grown and matured to the later stages of the VC funnel.
Meanwhile, analysis shows a growing list of international investors supporting Irish companies including Accel, Kinnevik, Tiger Global, Tencent, Summit Partners, 83North, Endeavor Catalyst, EQT Life Sciences, ABB, Samsung and Yokogawa. Domestic investment comes from the likes of Act, Elkstone, Atlantic Bridge, Delta Partners and Furthr.
In a separate report last month, the Irish Venture Capital Association (IVCA) raised alarm over the influence of foreign funding into domestic companies across sectors, after contributions from abroad represented 82pc of the total investment in Irish SMEs in the first half of 2026.
Global geopolitical instability, including the war in Iran, as well as the significant concentration of US capital in blockbuster AI deals could well impact future international VC investment into Ireland, the association’s chairperson Richard Watson said at the time.
“The level of investment reflects the calibre and growing maturity of Irish AI companies, the breadth of sectors they are operating in and the strength of the intellectual property being developed in Ireland,” said Jenny Melia, the CEO of Enterprise Ireland.
“As AI moves further into areas such as healthcare, financial services and critical infrastructure, trust, governance and assurance will also become increasingly important to commercial success.”
Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation Niamh Smyth, TD said: “AI is moving rapidly into practical use across the economy. For Irish businesses, the prize is greater productivity, stronger competitiveness and new opportunities for growth.”
Funding for the remainder of 2026 will be shaped by regulatory frameworks (including the AI Act and the now operational AI Office) and a VC market that has settled into a more selective, late-stage orientation, the report finds.
PitchBook’s report comes just ahead of the International AI Summit in Dublin on 14 October hosted by the Irish Government as part of its rotational presidency of the Council of the EU.
While over the weekend, leaders in the space, including Dr Abeba Birhane, a cognitive scientist and researcher in AI ethics at Trinity College Dublin, took part in an ‘AI Counter Summit’ to highlight the absence of worker voices in the Irish Government-hosted event.
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