As talks continue on Government formation, Scale Ireland has called on any new government to prioritise the Irish indigenous tech sector, which it says complements our FDI sector

In a 10-point plan released yesterday (5 December), Scale Ireland, the not-for-profit representative organisation for Irish tech start-up and scaling companies, laid out priorities it asks the new Government to consider, and CEO Martina Fitzgerald confirmed to SiliconRepublic.com last night that Scale Ireland is also calling for the NDRC to be saved.

Readers will know that, NDRC is due to be shuttered at the end of 2025 and that there has been an outcry from many in the tech community with hundreds of founders signing an open letter to save the NDRC start-up accelerator in recent weeks. Scale Ireland’s call will add further pressure on the department to reconsider its plans. While many in the industry have said, off the record, that they recognise that changes may need to be made to the NDRC in its current form, there is a strong push in the sector for it to be retained, even if that does mean change.

Scale Ireland’s top priorities 

As part of the plan, Scale Ireland wants the Government to prioritise the Irish indigenous tech sector, which complements the FDI sector in the Irish economy. This will mean proactively supporting the ambition to double the number of large Irish exporting companies and increase R&D activity in the SME sector by 2030.

It has called for a reduction in red tape for start-up and scaling companies by committing to reduce the complexity of enterprise schemes and supports. “They are too focused on preventing misuse rather than promoting use,” Scale Ireland said. “They need to be clear and concise and simple to use with online guidance case studies. Companies need to be able to contact revenue without fear of triggering an audit.”

Scale Ireland also suggested setting up a scaling division in revenue to support start-ups and scaling companies, as well as ensuring compliance. This division would gain a clear understanding of the particular challenges and requirements facing this critically important sector and set clear percentage participation targets for revenue.

The organisation also advised introducing a lower 20pc rate of capital gains tax on all gains arising from innovative start-ups and scaling companies for founders, investors and staff to reflect the investment and personal risks taken. “This would increase competitiveness and support companies scaling globally from Ireland so they don’t move to countries with more attractive tax treatment.”

Other suggestions within Scale Ireland’s plan include overhauling share option schemes such as the Key Employee Engagement Programme so that start-ups can stay competitive for talent, diversifying and increasing funding opportunities by leveraging a small portion of pension fund savings into indigenous companies. “Political commitment is needed to make the necessary changes”, Scale Ireland said.

The organisation also said that the R&D Tax Credit Scheme needs to be enhanced in order to support R&D activity in the country, which is “the lifeblood of any high tech scaling company” and said this must be increased in the SME sector in line with other EU countries. It also advocated for support for the sustainability transition.

“Start-up and scaling companies need proactive support to develop sustainable business practices early in their journeys. Going green is not simply an ethical consideration, it is increasingly driving investment decisions,” it said.

“It is vital that we have a strong independent ecosystem which provides support and gives a voice for companies around the country.”

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