Abstract
While it is widely recognised that informal investors play a vital role in the development of new businesses, extent research on the nature of informal investment activity has focussed on large economies. There is little research about informal investment in small economies, including Ireland. This paper uses data from the Global Entrepreneurship Monitor to outline the extent and nature of informal venture capital activity in Ireland and to provide an estimate of the size of the informal venture capital market in Ireland. Results suggest that Family, Friends and Colleagues provided at least €195 million to new businesses in 2011, and Business Angels invested €80 million. We find that for every €1 of formal venture capital funding, there is approximately €5 of informal capital funds. We conclude by highlighting implications for policy and practice.