Sarah-Jane Larkin 

Credit: Fennell Photography

IVCA particularly welcomed the €1 billion investment programme through the Ireland Strategic Investment Fund to support scaling companies. This is a significant commitment to ambitious Irish businesses seeking to expand, internationalise and retain strategic activity and decision-making in Ireland. Deployed commercially, at pace and alongside experienced private investors and Irish venture capital and private equity fund managers, the programme can crowd in additional capital and deliver substantial economic impact.

The IVCA welcomes the extension of key tax measures supporting entrepreneurship and investment, including EII, SCI, SURE and Angel Investor Relief. These incentives help founders start and scale businesses, encourage private investment in innovative companies and strengthen Ireland’s pipeline of high-growth enterprises. Their extension provides valuable certainty for entrepreneurs, investors and SMEs across the country.

The IVCA also welcomed the enhancements to the R&D tax credit, including the increase in subcontractor limits, the higher first-year payment threshold and the enhancement of qualifying wage costs. These practical improvements will support cash flow, collaboration and sustained R&D investment, helping innovative businesses develop new products, build capability and scale from Ireland.

Additionally, the IVCA said the reduction in capital gains tax from 33 per cent to 31 per cent is a clear and welcome signal that Ireland intends to remain competitive for founders, investors and internationally ambitious businesses. Combined with the review of the wider investment tax regime, it creates an opportunity to build a simpler and more supportive environment for risk-taking, long-term investment and the recycling of capital into the next generation of Irish enterprise.

The additional €1 billion contribution to the Future Ireland Fund further strengthens the Budget’s long-term focus. IVCA said this prudent investment in fiscal resilience and intergenerational security should sit alongside an ambitious programme to mobilise domestic capital into productive Irish investment—supporting innovation, scaling businesses and sustainable employment today while building the economic strength required for the future.

Sarah-Jane Larkin, director general of IVCA, said: “Budget 2027 is a welcome statement of confidence in Irish enterprise. It recognises that investment, innovation and scaling companies are central to Ireland’s future prosperity. The reduction in capital gains tax, the examination of the wider investment tax regime, the extension of investor schemes, the strengthened R&D tax credit, the new Personal Investment Account and the €1 billion ISIF scaling programme collectively send a clear message that Ireland is open for investment and committed to growth.

“The opportunity now is to build on that momentum. The Personal Investment Account can give Irish savers a meaningful route to participate in long-term growth, while a complementary strategy for pension and institutional capital would unlock the much larger pool of domestic savings available to support productive investment.”

She added: “A professionally managed national fund-of-funds would be a powerful next step, enabling a small proportion of domestic pension savings to invest through Irish venture capital and private equity funds. It would complement today’s measures by supporting scaling companies, high-value employment and innovation, while giving Irish savers access to the long-term growth of the economy they help to build.”

Ms Larkin concluded: “This is a constructive and pro-enterprise budget that gives business and investors greater confidence. It provides a strong foundation for the next phase: connecting more Irish savings and institutional capital with Irish companies and domestic opportunity. Ireland has the capital, talent and ambition to translate today’s measures into stronger companies, quality jobs and sustainable long-term growth.”