Irish VC investment remains stable in Q3 2024

This quarter's largest deal was Galway-based medtech Luminate Medical, which raised $15 million to bring cancer care to more patients in their homes. The following two most significant deals were Galway-based medical device company Loci Orthopaedics, which raised $13.8 million in a series A funding round and Dublin-based developer of credit risk management platform Atlax 360, which raised $13.45 million. These deals reflect continued interest in the medtech and fintech sectors, which have remained resilient despite a more challenging investment climate. 

Commenting on VC activity in Ireland during Q3'24, Anna Scally EMA region Head of Technology & Media, and Partner KPMG in Ireland said: “Following a strong Q2’24, VC investment in Ireland saw a significant slowdown in Q3’24, as both traditional and corporate VCs pulled back. However, the recent announcement by the Government of a new Seed and Venture Capital Scheme, set to operate from 2025 to 2029 will inject a record $275 million into the ecosystem and offers a promising boost. Administered by Enterprise Ireland, this scheme will provide essential funding for early-stage Irish companies. As VCs continue to seek opportunities to support scaling businesses, this initiative will be vital in fostering growth and innovation.”

"Budget 2025 introduced expanded Capital Gains Tax (CGT) relief for Angel Investors, making it easier for them to support start-ups and scaling businesses. The reduced CGT rates of 16% (or 18% through partnerships) apply to investment gains, and the lifetime limit for relief has been increased from €3 million to €10 million. With the increased relief cap, investors should have greater motivation to inject capital into early stage companies, helping them scale and, in turn, contribute to the Irish economy's growth. That said, certain of the terms and conditions applying to the relief are not ideal, and it is hoped that they can be improved in subsequent budgets."

The last quarter in 2024 will remain challenging, but with stabilising economic conditions and falling interest rates, there is optimism that investment will begin to pick up in 2025. Sectors such as AI, health tech, and cybersecurity are likely to remain focal points for investors.

With the KPMG Global Tech Innovator final taking place on November 13 in Lisbon, best of luck to Irish finalist Emma Meehan, founder of Precision Sports Technology, as she prepares to represent Ireland, competing with tech innovators from 23 other countries.

• Global VC investment dropped from $95.5 billion in Q2’24 to $70.1 billion in Q3’24; the number of VC deals dropped from 9,270 to 7,227 over the same period.
• VC investment in the Americas dropped from $58.6 billion in Q2’24 to $41.4 billion in Q3’24—including from $55.5 billion to $37.5 billion in the US; in Asia, VC investment dropped from $18.5 billion to $15.6 billion, while in Europe it dropped from $17.9 billion to $12.5 billion.
• Global corporate VC investment fell from $54 billion to $35.2 billion between Q2’24 and Q3’24; this included declines from $34.4 billion to $19.6 billion in the Americas—including from $32.7 to $17.8 billion in the US—from $10.7 to $9.4 billion in Asia, and from $8.5 billion to $5.9 billion in Europe.
• Global exit value dropped from $52.9 billion in Q2’24 to $39.2 billion in Q3’24.
• Exit activity in Asia rose from $11.2 billion to $18.2 billion quarter-over-quarter, while it fell from $25.4 billion to $11.2 billion in the Americas, and from $16.3 billion to $9.8 billion in Europe.
• Global fundraising activity was well off the pace needed to match even 2023’s subdued total of $202.8 billion; at the end of Q3’24, global fundraising stood at $143.1 billion.