- 24 venture capital (VC) deals closed in Ireland in Q2'24, worth $237.5 million, up 38 per cent from Q2’23, according to the just released Venture Pulse Q2’24 report.
- 10 FinTech deals closed in Ireland in H1’24 worth $140.8 million, an increase from the $59.2 million across 9 deals seen in H1’23 – which was sharply skewed by one large transaction, according to the Pulse of Fintech H1’24 Report.
- The most significant deal in Q2 was $110 million raised by biotech SynOx Therapeutics — a Dublin-based drug discovery company focused on developing treatments for diffuse tenosynovial giant cell tumors.
- Venture Pulse and Pulse of Fintech reports produced by KPMG analyse the latest global and Irish trends in investment data and provide insights from both a global and regional perspective. All figures cited are in USD; data for the reports is provided by PitchBook.
Irish and European investors are more confident this quarter. However, the uncertainties created by the 2024 elections in the US and Europe, together with a sluggish IPO market and relatively high interest rates, mean they will remain cautious.
Key investment areas
The latest edition of the KPMG Venture Pulse report reveals that venture capital (VC) investment in Ireland experienced a pickup in Q2’24 and saw 24 deals raising $237.5 million an increase of nearly two fifths (38 percent) compared to $172.5 million across 33 deals for the same period last year.
VC investors showed increasing willingness to make bigger bets again in Q2’24, although their focus was somewhat narrow — on areas like AI, biotech, and fintech. Meanwhile KPMG’s Pulse of Fintech report for H1’24 has also been released, showing fintech activity also increased significantly in the first half of this year.
Globally, VC investment soared from US$75.4 billion to $94.3 billion between Q1’24 and Q2’24, fuelled by nine $1 billion mega-deals—the second largest total ever seen in a single quarter.
While VC investment rose to a five-quarter high, deals volume fell to 7,691—the lowest level seen globally since Q3’16. AI accounted for over half of the ten largest funding rounds globally during Q2’24 as VC investors continued to pour money into the space.
The Irish market in Q2'24
A diverse range of start-ups attracted solid funding rounds during Q2'24 and four deals accounted for three quarters of all Irish VC investment this quarter.
The top four deals included a $110 million raise by biotech SynOx Therapeutics, a drug discovery company focused on developing treatments for diffuse tenosynovial giant cell tumors.
XOCEAN, the ocean data company, raised $32.5 million in a Series B funding round and digital health and wellbeing provider Spectrum.Life secured $18.3 million in fresh funding.
The 2023 KPMG Global Tech Innovator Ireland finalist Nory, a fintech company focused on using AI to help restaurants operate more efficiently, also raised $16.1 million during the quarter.
Commenting on VC activity in Ireland during Q2'24, Anna Scally, EMA Head of Technology, Media & Telecommunications and Head of Technology and Media at KPMG in Ireland, said: "Irish and European investors are more confident this quarter. However, the uncertainties created by the 2024 elections in the US and Europe, together with a sluggish IPO market and relatively high interest rates, mean they will remain cautious, and it’s unlikely to see VC investment return to the levels reached in 2021 and 2022. It’s particularly encouraging to see investment and interest in Irish innovative solutions in biotech, ocean data tech, healthtech and AI.
A hint of optimism heading into Q3’24
Heading into Q3’24, VC investment globally and in Ireland is expected to remain relatively steady, with AI continuing to attract a large share of funding.
Scally added, “This surge highlights the growing confidence in Irish startups and Ireland’s innovative potential; we only have to look at the volume of exceptional entries and finalists in this year’s Global Tech Innovator competition 2024; the Irish winner will be announced in September.”
AI will likely remain a very hot area in addition to energy and cleantech. As of January 17, 2025, financial institutions in the EU will be required to comply with the Digital Operational Resilience Act (DORA). Given the complexities associated with compliance, there will likely be growing interest in regtechs focused on helping companies comply.
Irish FinTech up to $140.8m, but global fintech declined
The first six months of 2024 were particularly challenging for the fintech market globally, according to KPMG’s Pulse of Fintech H1 2024 report. Total global fintech investment—including VC, PE, and M&A deal value—fell from $62.3 billion across 2,287 deals in H2’23 to $51.9 billion across 2,255 deals in H1’24.
However, the trend in Ireland is positive as $140.8 million was raised across 10 deals in H1’24 compared to $59.2 million across 9 deals in H1’23. It is worth nothing however that activity in H1’24 was skewed significantly by one large transaction – the $109 million buyout of Ireland-based SoftCo by Keensight Capital.
Other notable deals for the period were ones by Zartis, offering software consulting services, and mobile payment platform CleverCards, both raising just over $10million and $8 million respectively.
Fintech deals provide optimism in Ireland
The volume of early-stage deals has been thriving both because of the interest in new technologies... and newer business models.
Ian Nelson, Head of Financial Services at KPMG Ireland noted: “The first six months of 2024 have been challenging for the fintech market globally amid the high interest rate environment and the significant amount of global geopolitical uncertainty.
However, we can see that, in Ireland, there is interest in strong business cases within the wider fintech space. The volume of early-stage deals has been thriving both because of the interest in new technologies, such as AI applications, and newer business models to meet the changing nature of the financial services sector. We expect to see this continue, in the remainder of 2024.”
Venture Capital: Key global highlights – Q2’24
- Global VC investment rose from $75.4 billion in Q1’24 to a five-quarter high of $94.3 billion in Q2’24.
- Global VC deal volume fell from 9,082 deals in Q1’24 to 7,691 in Q2’24; it was the lowest total of deals seen since Q3’16.
- VC investment in the Americas rose from $39.5 billion across 3,883 deals to $58.3 billion across 3,472 deals between Q1’24 and Q2’24; the US accounted for $55.6 billion of this total, spread across 3,108 deals.
- VC investment in Europe rose from $13.9 billion across 2,270 deals in Q1’24 to $17.4 billion across 1,869 deals in Q2’24.
- In Asia, VC investment remained soft, falling from $20.8 billion in Q1’24 to $17.4 billion in Q2’24—its lowest level since Q1’17.
- Global Corporate VC participating investment rose from $36.2 billion to $41.1 billion between Q1’24 and Q2’24.
- Both the Americas and Europe saw CVC participating investment rise—to $21.9 billion and $8.9 billion respectively; in Asia, CVC participating investment fell from $11 billion to $9.8 billion quarter-over-quarter.
Fintech H1’24—Key global highlights
- Total global investment in fintech fell from $62.3 billion across 2,287 deals in H2’23 to $51.9 billion across 2,255 deals in H1’24.
- In the Americas, total investment fell from $38.5 billion to $36.7 billion between H2’23 and H1’24—including from $35 billion to $27.4 billion in the US— while in EMEA it fell from $19.1 billion to $11.4 billion, and in ASPAC it dropped from $4.6 billion to $3.7 billion.
- Fintech deal volume in the Americas rose from 1,066 to 1,123 deals between H2’23 and H1’24—including from 866 to 916 deal in the US—while it rose from 406 to 438 deals in ASPAC; deal volume dropped in the EMEA region from 804 to 689 deals.
- Global M&A deal value was $32.6 billion across 264 deals globally in H1’24. The Americas attracted $26.8 billion across 130 deals, EMEA attracted $5.5 billion across 102 deals, and ASPAC attracted $310 million across 31 deals.
- Global VC investment was $18.3 billion in H1’24, of which the Americas saw $9.3 billion—including $7.6 billion in the US—EMEA saw 5.4 billion, and ASPAC saw $3.4 billion.
- Global PE investment was just $979.5 million in H1’24. The US accounted for all $568.9 million in PE investment in the Americas, while EMEA saw $402.8 million, and ASPAC saw just $7.8 million.
- Corporate CVC investment accounted for $8.5 billion in VC investment in H1’24, including $4.4 billion in the Americas ($3.6 in the US), $2.23 billion in the EMEA region, and $1.7 billion in ASPAC.
- Payments accounted for the largest proportion of fintech investment in H1’24, attracting $21.4 billion.
- Regtech investment reached $5.3 billion at mid-year—already well ahead the $3.4 billion seen during all of 2023.
Get in touch
The pace of change is challenging leaders like never before.
To find out more about how KPMG perspectives and fresh thinking can help you focus on what’s next for your business or organisation, please get in touch with Anna Scally or Ian Nelson.
We’d be delighted to hear from you.
Anna Scally
Partner, International Tax & TMT Sector lead for KPMG in EMA
KPMG in Ireland
Ian Nelson
Partner, Head of Financial Services & Regulatory
KPMG in Ireland
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