200 technology startup founders have signed an open letter disagreeing with the decision by the Government to cease funding for the National Digital Research Centre and appealing for it to be reconsidered.
The accelerator programme is to shut at the end of next year and the founders have sought a clear and justified rational for the decision.
In their letter they said NDRC had played a vital role in the Irish startup ecosystem, especially over the last four years.
“This closure comes at the worst possible time,” they wrote.
“Ireland needs to build a more resilient, self-sufficient economy and reduce its dependence on foreign multinationals, which account for more than 80% of our corporation tax revenue, and create high-impact indigenous Irish startups.”
“This decision threatens to dismantle a proven success model for building homegrown businesses for what appears to be nothing more than bureaucratic pride.”
They founders added that under the stewardship of Dogpatch Labs, NDRC had built regional hubs and an ecosystem of early stage startups that could compete with European and US counterparts.
“Since 2021, NDRC-backed startups have raised €200 million, contributing to a total of €500 million over the past four years, while creating 650+ jobs,” the letter said.
The signatories said engagement from global venture capital firms had increased because of it and companies like Wayflyer, Tines, &Open, Protex, Nory, Kota and Cearaertas had raised significant capital from top-tier investors.
“Without the NDRC, the only national early-stage startup programs available are generalist initiatives like New Frontiers and Competitive Start Fund, which are being positioned as replacements,” the letter said.
“However, this perspective is disconnected from reality and dismissive of the unique value an entrepreneur-led accelerator provides to technology startups.”
“As founders with firsthand experience in building and scaling companies, we acknowledge the merits of initiatives from Enterprise Ireland and the government, but they are not designed to meet the specific demands of high-growth startups or address the challenges these businesses face.”
The letter was written by Paul Sheridan of Lynq, Luke Mackey of Kota, Eoin Cambay of Swan and Will O’Brien from Ulysses, and has been endorsed by 200 others who have created an estimated 2,745 jobs and raised €1.1bn.
Earlier this week, NDRC said the Department of the Environment, Climate and Communications, following consultation with the Department of Enterprise, Trade and Employment and Enterprise Ireland, had concluded that the enterprise ecosystem has evolved significantly since NDRC’s inception.
As a result the departments had decided not to procure a new service contract for NDRC beyond its current contract expiration in November 2025.
“As the NDRC enters its final operating year, we remain committed to maintaining our programmes. Operations will continue as usual until November 2025, and we have plans in place to manage and support ongoing investments,” NDRC said.
Neither the Department of the Environment nor the Department of Enterprise have so far responded today to a request for a comment on the situation.
NDRC was set up in 2006 and administered by Department of the Environment, Climate, and Communications.
It awarded its latest contract in November 2020 to Dogpatch Labs, in partnership with regional collaborators in Kerry’s RDI Hub, Cork’s Republic of Work and Galway’s PorterShed.
This partnership was for three years, but was extended by an additional two years.
