• 33 VC deals closed in Ireland in Q2’21, worth $641.5 million
  • Investment levels highest on record
  • Activity spread across multiple sectors, with health and biotech featuring prominently
  • The Q2 2021 edition of the Venture Pulse report produced by KPMG analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. All figures cited are in USD; data for the report is provided by PitchBook

KPMG has published its Venture Pulse Q2’21 report, tracking venture capital (VC) activity around the globe. Findings show that 33 deals involving Irish companies closed in the period, totalling $641.5 million. This rebound in activity follows first quarter investment of 24 deals totalling $125.4 million and sets a new record for investment levels, following previous highs of $517 million in Q2’18 and $515.5 million in Q2’19. The period was also buoyed up by three separate $100m plus fundraisings.

Irish health and biotech companies were of particular interest to investors, as were software and technology companies. Earlier stage companies from a variety of sectors in Ireland also secured investment in the period including BAK Bulk Services, a family owned storage, product management and distribution company ($6 million); gifting platform &Open ($7.2 million) and Kastus, a developer of antimicrobial and antiviral surface coating technology ($6.85 million)

The lift in Irish VC investment was also echoed globally, where $157.1 billion was raised across 7,687 deals. The increase in activity is credited to a robust IPO market, high valuations, and a seemingly endless supply of dry powder, according to the report. 

Top deals in Ireland

The top 5 deals closed in Q2’21 in Ireland include:

  1. LetsGetChecked* ($150 million): a Dublin based developer of a medical health testing platform designed to connect customers and global laboratories for personal health testing.
  2. TechMet ($120 million): a Dublin headquartered investor in rare metals used in electric vehicles and tech products.
  3. GH Research ($125 million): The Dublin-based biopharmaceutical, which company develops novel therapies for the management of mental illness, will invest the funds to support further clinical development of drug products for psychiatric and neurological disorders.
  4. Wayflyer ($76 million): A revenue-based financing platform for e-commerce merchants with offices in Dublin, London, New York and Sydney.
  5. Ecocem ($27 million): A green cement company founded in Dublin in 2003, which will use the investment to bring new ultra-low-carbon cements to the market over the coming years.

Other notable deals in the period included a $26 million raise by Dublin-based cybersecurity automation start-up, Tines; a $25 million raise by Manna drone delivery service and a $17.3 million raise by Vela Games, a Dublin based game studio.

Commenting on the strong VC activity in Ireland during Q2’21, Anna Scally, Partner and Fintech Lead at KPMG in Ireland said: “The record investment levels in Q2’21 demonstrates how well Irish companies have reacted and adapted to the Covid-19 crisis. Irish businesses are providing solutions to issues we couldn’t have imagined two years ago and unsurprisingly, health, biotech and tech solution companies attracted keen investment. We’re seeing support for companies which are developing life enhancing products and services for our ‘new normal’ and I expect that trend to continue through the remainder of the year.”

“Similar to last quarter, investment was spread across a number of sectors and I’m especially   encouraged to see innovative green solutions and family businesses featuring in this quarter’s list, along with health and tech companies. As the green agenda continues to be a dominant boardroom issue, we will likely see even more innovative solutions emerge in this space from Irish companies in the future.”

Global highlights – Q2’21

  • Global VC investment rose from $147.2 billion across 8,557 deals in Q1’21 to $157.1 billion across 7,687 deals in Q2’21.
  • VC investment in Europe reached $34 billion across 1,848 deals in Q2’21 – up from $23.9 billion across 2,150 deals in Q1’21.
  • VC investment in the Americas was very strong in H1’21, with $84.9 billion invested across 3,660 deals surpassing the previous record of $80 billion set in the previous quarter. The US accounted for $75.8 billion of this investment and 3,297 deals.
  • The Asia-Pacific region saw solid VC investment in H1’21, despite a dip from $42.8 billion across 2,066 deals in Q1’21 to $38 billion across 1,998 deals in Q2’21, with a record $7.8 billion in India.
  • Corporate investment was very robust in Q2’21 – accounting for $73.9 billion in investment across 1,70 deals.
  • At mid-year, global median deal size was up across all deal stages, including medians of $2 million for Seed stage, $10 million for Series A, $25 million for Series B, $53 million for Series C, and $105 million for Series D+ deals.
  • VC-backed exit value reached $221 billion in Q2’21 – second only to the record $314 billion seen in Q1’21.
  • First time financings in first half of the year totalled $20.1 billion – well on track to exceed the peak high of $32 billion seen in 2018.

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, FinTech Lead. We’d be delighted to hear from you.

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