Ireland’s state-backed startup company tech accelerator, the National Digital Research Centre (NDRC), has announced it will cease operations in November 2025.
The NDRC said Ireland’s Department of the Environment, Climate and Communications, following consultation with the Department of Enterprise, Trade and Employment (DETE) and Enterprise Ireland, “concluded that the enterprise ecosystem has evolved significantly since NDRC’s inception, and has decided not to procure a new service contract for NDRC beyond its current contract expiration in November 2025.”
The NDRC said it has contributed to the development of the Irish startup ecosystem by advancing early-stage digital enterprises and helping portfolio companies to raise more than €500 million, of which over €200 million was secured in the last four years.
The decision has sparked reaction from Ireland’s startup community.
About 200 technology startup founders signed an open letter disagreeing with the decision and appealing for it to be reconsidered.
The letter was written by Paul Sheridan of Lynq, Luke Mackey of Kota, Eoin Cambay of Swan and Will O’Brien of Ulysses — and has been endorsed by 200 other founders who have created an estimated 2,745 jobs and raised about €1.1 billion.
“This closure comes at the worst possible time,” wrote the company founders.
“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.”
The signatories said engagement from global venture capital firms had increased because of NDRC and companies including Protex, Nory, Wayflyer, Tines, &Open, Kota and Cearaertas had raised significant capital from big 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 NDRC’s full statement read: “For more than two decades, the National Digital Research Centre (NDRC) has contributed to the development of the Irish startup ecosystem by advancing early-stage digital enterprises and aiding portfolio companies in raising +€500 million, of which +€200 million was secured in the last four years alone.
“It is with this legacy of achievement that we announce the NDRC will cease operations in November 2025.
“The NDRC, operational since 2006 and administered by Department of the Environment, Climate, and Communications (DECC), awarded its latest operating contract in November 2020 to Dogpatch Labs, in partnership with regional collaborators in Kerry (RDI Hub), Cork (Republic of Work), and Galway (PorterShed).
“This partnership, initially set for three years, was extended by an additional two years after a strong performance review, setting a new end date for November 2025.
“However, the Department of the Environment, Climate and Communications, following consultation with the Department of Enterprise, Trade and Employment (DETE) and Enterprise Ireland, concluded that the enterprise ecosystem has evolved significantly since NDRC’s inception, and has 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.”