The largest investor in Europe and the second biggest investor in the world is not a venture capital fund - it is the Irish government. The Enterprise Ireland fund invests in more than 200 startups every year with the purpose of providing them with access to capital, resources, and access to the global market. They come only 2nd behind 500 Startups, a San Francisco Venture Capital and Private Equity firm, in deal activity.
Many may not be surprised by this. Large multinational corporations employ one in eight workers in Ireland and account for 80% of corporation tax receipts. Facebook, Amazon, Apple, Netflix, and Google all have their European headquarters in Ireland, and Ireland had the fastest-growing economy in the EU for five consecutive years.
Ireland's trade and innovation agency has an international network of 40 offices and a world-class research and development department. This network fosters connections between these companies and any angel investors, a key step in the Irish startup ecosystem. These 40 hibs Focus on delivering a clear Return on Investment case to their host countries to help their portfolio companies expand internationally. A thriving software engineering talent pool and investment capital make for an ideal startup environment. Over 2,200 startups are located in Dublin, where one in ten workers are software developers.
The Irish government's €16bn surplus is attributed in part to these investments. in fact, the income generated via Enterprise Ireland is three times more than they invested. It is thought that this method of government income generation could be adopted by other governments around the world, due to its success in promoting national and international business interests and due to the income gained.
