Funding nonetheless the most important problem in 2026

Scale Eire additionally discovered that 35.4pc of respondents to its annual survey have been unaware of the landmark EU AI Act.

Irish founders have pointed fingers at funding as their greatest concern for the fifth 12 months in a row, finds the most recent annual Scale Eire State of Begin-up Survey, revealed at present (13 February).

Scale Eire surveyed 209 founders and CEOs of tech firms from Eire. Practically 75pc of them instructed surveyors that attracting non-public capital is “tough” or “very tough”.

Comparable numbers discovered it arduous to draw non-public capital again in 2022 – when the report was first launched – as in 2025, when Scale Eire reported 80pc of respondents have been discovering it arduous to draw capital.

This discovering is according to a 2025 Authorities report which discovered that Irish scale-up enterprises would face a €1.1bn hole in fairness financing over the following three to 5 years.

“Whereas funding stays the most important situation for start-ups and scaling firms, there are additionally appreciable and protracted issues with enterprise helps. They’re far too difficult,” mentioned the not-for-profit Scale Eire’s CEO Martina Fitzgerald.

In comparison with that earliest 2022 report, which discovered that one in 4 enterprise leaders mentioned recruiting and retaining employees was their greatest problem, in 2026 solely 9.1pc mentioned the identical.

The massive majority of companies surveyed (88.5pc) for 2026 mentioned they didn’t use the Key Employment Engagement Programme (KEEP) to recruit and retain employees. 45pc believed the scheme must be reformed.

Greater than 60pc of the surveyed founders mentioned that authorities helps – such because the KEEP scheme – are the “most crucial” to efficiently scaling a enterprise.

Nevertheless, there’s a sturdy indication that founders don’t discover the out there helps for start-ups and scale-ups sufficient. Greater than 66pc of the survey respondents should not assured that Eire is transferring in the proper course on this occasion, whereas 30.6pc are “assured” or “very assured” about this.

In the meantime, greater than 94pc of founders have already deployed or are prepping to deploy AI of their firms, the most recent survey has discovered. 85% consider AI will add worth to their firm’s efficiency.

Different stories counsel that AI’s results on the underside line in Eire are nonetheless anticipated to be lukewarm. In line with PwC’s AI Agent Survey, 53pc of Irish members see clear productiveness boosts from AI brokers, however solely 38pc expertise actual value reductions.

On high of that, Scale Eire discovered that 35.4pc of its respondents have been unaware of the landmark EU AI Act, whereas round 36pc mentioned that they don’t know what impression the regulation can have on their enterprise. Fitzgerald mentioned that this must be “addressed urgently”.

The EU AI Act is arguably probably the most strong and detailed type of AI regulation on this planet. The act is supposed to control AI expertise by means of a risk-based method – the riskier an AI utility is, the extra guidelines apply to it.

“The survey demonstrates that, whereas progress has been made in areas such because the R&D tax credit score, different challenges for the sector are very persistent,” mentioned Scale Eire chair Brian Caulfield.

“Begin-up and scaling firms stay vastly undercapitalised relative to US friends. Higher incentives are required to encourage non-public funding by angels and to mobilise pension fund financial savings to put money into indigenous enterprises.”

Don’t miss out on the data you have to succeed. Join the Day by day Transient, Silicon Republic’s digest of need-to-know sci-tech information.