Western Development Commission Reaches €100 Million Investment Milestone

The Western Development Commission (WDC) has achieved a major milestone by reaching €100 million in investments through its Western Investment Fund (WIF). This fund has played a crucial role in supporting small and medium-sized enterprises (SMEs), start-ups, community projects, and strategic regional initiatives across the west of Ireland.

Gillian Buckley, head of investment at WDC, highlighted the importance of this achievement, noting that the fund has effectively leveraged additional public and private capital. The WIF serves as an “evergreen investment fund,” meaning that all returns are reinvested into new ventures, making it a vital source of seed funding for companies throughout the region, particularly in the deep tech sector.

Investment Focus and Impact

The WIF has invested in notable companies such as Aerogen, AltoCloud, and CitySwift. According to the WDC, portfolio companies and projects currently employ approximately 5,000 people directly and indirectly and have generated over €5 billion in revenues, with half of this amount coming from exports.

Buckley remarked, “It is a major milestone for what is a relatively small fund in the West of Ireland. The vast majority of that money has been revolved through the evergreen fund process and reinvested back into the region.” She further explained that the investments have attracted over €500 million from both public and private sources and European Union grants.

The WDC’s focus on the deep tech sector is rooted in its mission to retain young talent and provide high-quality job opportunities within the region. “The bulk of money goes into deep tech companies across the Western region,” Buckley stated, emphasizing the dedicated funds aimed at encouraging start-ups and scaling up existing businesses.

Long-Term Commitment to Growth

While the fund primarily targets early-stage investments, Buckley noted that it often remains involved with companies for the long haul. “We have some companies that we’ve been invested in for almost 20 years. We are patient capital, and we do need patient capital,” she explained. The support provided extends beyond financial assistance, as the WDC aims to lighten the load for entrepreneurs during their challenging journeys.

One significant success story is Aerogen, which the WIF supported in 2008 when it assisted John Power in completing a management buyback. Since then, Aerogen has grown substantially, currently employing over 600 people. In January, the company announced plans to create more than 700 new jobs as part of a €300 million expansion supported by Enterprise Ireland.

Buckley also highlighted the achievements of CitySwift and AltoCloud, both of which have experienced remarkable growth following initial investments from the WIF. CitySwift has scaled its operations significantly and is now marketing its technology globally, while AltoCloud was acquired by Genesys, resulting in over 400 jobs in Galway.

The impact of these investments extends to the community as well. Buckley noted that 70 percent of employment in supported companies is at the graduate level, a figure that exceeds the national average. The fund also supports social enterprises and community projects, contributing to the overall quality of life in the region.

Looking ahead, WDC senior investment manager Geraldine McLoughlin will participate as a panellist at the Founders Exchange in Galway on October 24, 2023, sharing valuable insights for entrepreneurs. The WDC continues to play a pivotal role in fostering growth and innovation, making a lasting impact on the west of Ireland’s economy and community.