Irish SME finance and funding in 2025 

Our expert panel discussed recent shifts in private investment, the “funding gap” and funding avenues available for Irish SMEs, and what’s needed to get investment ready.

The panelists on Tuesday April 15th were:

• Helen Cahill, Co-founder and CEO of Financefair;
• Mark Flood, Director at Renatus Capital Partners;
• and Alan O’ Dea, CFA, Investment Director at Beechbrook Capital.
• The panel was moderated by Brendan Lenihan, Managing Director of Navigo Consulting.

Key Takeaways: Finance and Funding for Irish SMEs

The panel offered insights into the evolving landscape of funding for Irish SMEs. The discussion looked beyond fundamental funding options to the broader economic context, the role of technology, and the changing dynamics of public versus private markets.

1. “Open for Business” in uncertain times

Despite recent global market volatility, the panelists confirmed their firms are actively investing. They emphasised a consistent, long-term view, even as they carefully assess unique risks within each market cycle.

Mark Flood highlighted that his firm’s portfolio has both headwinds (e.g., car license plates facing 130% tariffs from China) and tailwinds (e.g., construction tech in the semiconductor/pharma sectors benefiting from US reshoring), indicating diverse impacts of global events.

Alan O’Dea cautioned against making snap decisions based on short-term market swings, advocating for a calm, measured approach, and expressing confidence in companies’ ability to adapt.

2. Evolving funding and diverse avenues 

Addressing the Irish SME “funding gap”: Ireland boasts a robust ecosystem for early-stage funding (Enterprise Ireland, LEOs) but  a significant gap emerges as companies scale beyond initial seed funding. Here’s how the different companies are approaching this gap.

• Financefair: Helen Cahill reiterated Financefair’s role in providing “deep” and “sticky” growth funding, leveraging strong and growing revenues, particularly for businesses lacking tangible assets (e.g., tech, e-commerce, SaaS). They provide funding from €250k up to €3m and can work alongside or be refinanced by other funders, acting as a “growth catalyst.”
• Beechbrook Capital: Alan O’Dea detailed Beechbrook’s provision of “transformative capital” (€4m-€30m) to profitable companies (EBITDA of €1.5m-€2m+). Their non-amortising loans support organic growth (CapEx, hiring) or inorganic growth (acquisitions), prioritising reinvestment of cash flows. This “true cash flow lending” backs management teams to navigate growth and crises, often serving as an interim solution before conventional bank refinancing.
• Renatus: Mark Flood explained Renatus’s equity investment model, where they take shares in businesses. Private equity is suited for shareholder exits, allowing founders to de-risk/monetise success, and funding acquisitions or significant capital investments. Renatus brings “growth DNA” and strategic/organisational expertise to complement capital.

3. Getting investment ready: practical advice for Irish SMEs in 2025

Everyone stressed preparation is essential:

• Seek professional advice: This is crucial for understanding the market, matchmaking with suitable funders, negotiating terms, and preparing necessary information efficiently.
• Craft a compelling story: (Mark Flood recommended a “3-Page PDF”) with:
  
  • Past performance: Highlight the last three years of achievements.
  • Future strategy: Outline a clear plan for the next three years, demonstrating growth potential.
  • Organisational chart & people: Showcase the right team, especially their commitment to the business’s future.
• “Have Your House in Order”: Meticulous preparation of all documentation for due diligence (leases, agreements, financials), ideally years in advance with a good advisor and CFO.
• Be “selfish” and forensic: Critically assess and present internal strengths: strong management, clear capital table, quality of customers/receivables, and robust financial controls.
• Understand funding choices: Acknowledge the “education gap” regarding the diverse alternative funding options beyond traditional bank loans.

4. Future Trends:

• Maturing Irish funding ecosystem: Alan O’Dea noted a significant closing of the funding gap in Ireland since 2018, driven by the increasing presence of international private equity and private credit. This has led to the growth of dedicated debt advisory services, indicating a more mature market.
• The role of AI: Panelists agreed that AI is being heavily implemented in their own operational workflows to enhance productivity and accelerate decision-making by leveraging data. However, for underwriting, human judgment and the backing of management teams remain paramount, as AI is not yet seen as a sole decision-maker for complex SME investments. 
• Public vs. Private markets for SMEs: The panel discussed the decline in small to medium-sized enterprises using public equity markets (like AIM in the UK) for funding, favouring private equity and M&A.
  
  • Reasons for Private Preference: Mark Flood suggested that “hero companies” like Ryanair or Kerry Group might not IPO today due to the plethora of private options. Private equity offers less public scrutiny, direct relationships, and often a “handshake” approach that is less complex than public market obligations.
  • “The 1 to 3 Million Euro Gap”: Mark Flood identified the biggest funding gap as being in the €1-3 million range, particularly for EIS (Employment Investment Incentive Scheme) type investments, where investors get tax breaks and provide experience. Below €1m, friends and family are often the source, and above €3-5m, numerous private equity “brass plates” exist.
  • Obligations of public markets: Helen Cahill noted that even listing on smaller exchanges (like the Swedish Stock Exchange for one of their former clients) comes with significant obligations.
  • Need for role models: While private exits mean less public visibility for success stories, Mark Flood stressed the ongoing need for role models in the entrepreneurial ecosystem.
  • Structural importance of public markets: While acknowledging the structural importance of vibrant public markets for an economy and nation, the panelists largely concluded that for many scaling Irish SMEs, the current private market ecosystem offers a more attractive and less burdensome path to growth. Helen Cahill pointed out that the “mindset” of the scaling middle market in Ireland is not currently aligned with public market flotation.

The panel ended by emphasising the numerous alternative funding options available for Irish SMEs, which they expect to continue to evolve and become more prominent in the years to come.

Finance speaker bios

Helen Cahill

Helen is the Co-Founder and CEO of Financefair, a Fintech Software Platform for ambitious, scaling businesses. Having provided over €2bn of fast, flexible, and non-dilutive funding solutions tailored to growth-stage companies over the last 9 years Financefair are bridging the funding gap where traditional lenders fall short.

Mark Flood

Mark co-founded Renatus with Brendan Traynor in 2014. Before founding Renatus, Mark was Managing Director of the Racing Post’s Irish operation. Renatus is a boutique private equity firm investing in Irish and UK companies with global ambitions, supporting founders and partners in achieving their growth objectives.

Alan O’Dea

Alan has been with Beechbrook Capital for 7 years and is a director in the investment team responsible for investments across Ireland, the UK and Northern Europe. His role includes origination, execution and ongoing portfolio management of invested companies. He is a member of the ESG Committee at Beechbrook.

Brendan Lenihan

Brendan is a professional non-executive director, chartered accountant, management consultant and mediator.  He is MD of Navigo Consulting, helping clients to succeed with their business objectives in the areas of strategy, governance, finance and change.  He is Board Chair of Irish International Trading Corporation (Cork) plc and a member of the Investment Committee of Enterprise Ireland. 

Don’t miss our next finance conference

If you’d like to make sure you don’t miss the next one, you can sign up for our newsletter or follow us on social media to be the first to know when we announce the next date.

If you have any questions for our panelists, or want more information, please contact jackie@paulodonovan.ie.