Key Takeaways
- • Elkstone is launching Venture Fund II targeting €150–€200 million to address an identified funding gap exceeding €1 billion in early-stage Irish and Northern Irish start-up investment.
- • The fund will deploy capital across 30–40 companies at typical ticket sizes of €1–€2 million, focusing on seed and pre-Series A stage technology-enabled businesses sector-agnostically.
- • Elkstone has lowered the minimum investor commitment to €100,000 (drawn over five to seven years) to align with Employment Investment Incentive Scheme (EIIS) relief thresholds, broadening retail and institutional access.
- • Fund II represents an expansion of Elkstone's track record, which includes successful early-stage exits in Flipdish, LetsGetChecked, Manna, and Soapbox Labs, and will leverage the firm's international venture network to facilitate follow-on capital for scaling companies.
- • The fund positions itself as Ireland's first all-island venture vehicle, explicitly targeting both Republic of Ireland and Northern Ireland founders to capture a geographically fragmented but underserved early-stage investment market.
Summary
Elkstone, a Dublin-based private market investment firm, has launched Venture Fund II with a target raise of €150–€200 million, positioning the vehicle as Ireland's first all-island venture capital fund. Founder Alan Merriman stated the firm aims to "fill a gap in the market" for early-stage, high-potential start-ups across both the Republic of Ireland and Northern Ireland. The fundraising announcement comes as Elkstone seeks to extend its track record of early-stage venture investing, having previously backed companies including Flipdish, LetsGetChecked, Manna, and Soapbox Labs.
The fund targets a portfolio of 30–40 companies, with typical investment sizes between €1 million and €2 million per deployment. Fund II will focus primarily on seed and pre-Series A stage companies, employing a sector-agnostic, technology-enabled investment thesis. Merriman identified a "funding gap well in excess of €1 billion" in the Irish early-stage investment landscape, arguing that Elkstone's €150 million-plus fund size is well-positioned to absorb market demand without saturation. The investment strategy emphasizes not only direct capital deployment but also facilitation of follow-on funding through Elkstone's international venture capital network, enabling portfolio companies to attract subsequent rounds as they scale.
To broaden institutional and retail investor participation, Elkstone has set the minimum investor commitment at €100,000—the legal minimum—with capital drawn over five to seven years. The firm explicitly aligned this threshold with the Employment Investment Incentive Scheme (EIIS) relief eligibility, a tax incentive mechanism designed to encourage investment in early-stage Irish companies. This structuring targets investors seeking to optimize tax efficiency while diversifying into early-stage venture exposure.
Merriman acknowledged the inherent risk profile of venture investing, noting that "it is inevitable some companies will fail," but emphasized the potential for outsized returns from portfolio winners. The all-island geographic mandate reflects a strategic positioning to capture the fragmented but underserved funding market spanning both jurisdictions, differentiating Fund II from regionally focused competitors and establishing Elkstone as a pan-Irish early-stage venture platform.
The fund targets a portfolio of 30–40 companies, with typical investment sizes between €1 million and €2 million per deployment. Fund II will focus primarily on seed and pre-Series A stage companies, employing a sector-agnostic, technology-enabled investment thesis. Merriman identified a "funding gap well in excess of €1 billion" in the Irish early-stage investment landscape, arguing that Elkstone's €150 million-plus fund size is well-positioned to absorb market demand without saturation. The investment strategy emphasizes not only direct capital deployment but also facilitation of follow-on funding through Elkstone's international venture capital network, enabling portfolio companies to attract subsequent rounds as they scale.
To broaden institutional and retail investor participation, Elkstone has set the minimum investor commitment at €100,000—the legal minimum—with capital drawn over five to seven years. The firm explicitly aligned this threshold with the Employment Investment Incentive Scheme (EIIS) relief eligibility, a tax incentive mechanism designed to encourage investment in early-stage Irish companies. This structuring targets investors seeking to optimize tax efficiency while diversifying into early-stage venture exposure.
Merriman acknowledged the inherent risk profile of venture investing, noting that "it is inevitable some companies will fail," but emphasized the potential for outsized returns from portfolio winners. The all-island geographic mandate reflects a strategic positioning to capture the fragmented but underserved funding market spanning both jurisdictions, differentiating Fund II from regionally focused competitors and establishing Elkstone as a pan-Irish early-stage venture platform.
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