Almost 50 Irish technology firms have received €264 million (£208 million) in venture capital funding this year, despite the global downturn in the sector, a new survey shows.

The survey of 49 firms, by Dublin-based corporate finance group Ion Equity, found they had attracted investment worth from €400,000 to €20 million.

It paints a much rosier picture than two other recent venture capital reports by PricewaterhouseCoopers and the Irish Venture Capital Association.

Both these reports predicted a slowdown in the amount of funds raised by domestic-based technology firms in 2001.

Ion Equity chief executive Mr Neil O'Leary said the results of the survey showed there was plenty of venture capital available to technology companies.

"The suggestion that emerging Irish IT firms were facing difficulties in raising finance during the current year is misplaced," he said. "There is very safely more than €250 million spent this year already. It could be more than €300 million by the end of the year."

Mr O'Leary said a much larger proportion of the money invested this year was by international ventre capital funds.

"There is more of a trend of international firms investing directly than simply participating through local players' funds," Mr O'Leary added.

"The challenge for Irish firms is not locating the investment money available, but rather to come up with a plausible business model," he said.

Mr O'Leary said the figures reflected strong interest in companies engaged in the creation of communication technologies that sold into areas such as telecoms and financial services.

It is likely the amount of venture capital raised by Irish firms is more than €264 million, as many firms have not publicised internal funding rounds.

See Ireland.com's technology section for an online updated list of fundraisings by Irish technology firms.