In short
- 26 venture capital (VC) deals closed in Ireland in Q4'23, worth $174.76 million
- VC declined in 2023 as total VC investment in Ireland companies reached $764.06 million across 101 deals, representing a 34 percent decrease from the €1.16 billion invested across 122 deals in 2022
- Annual Irish VC investment drops to a four-year low in 2023
- The Q4'23 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
2023 was a very challenging year for the venture capital (VC) market globally and in Ireland, as several factors combined to drive uncertainty and investor caution up, including geopolitical uncertainties, high interest rates and inflation levels, ongoing concerns about valuations, and the incredibly dry exit environment.
Twenty-six VC deals closed in Ireland in Q4'23, worth $174.76 million; the total investment in 2023 declined to $764.06 million across 101 deals, according to the latest quarterly KPMG Venture Pulse report, representing a 34 percent decrease from the $1.16 billion invested across 122 deals in 2022.
Lowest global VC investment
Global VC investment fell from $531.4 billion across 51,894 deals in 2022 to $344 billion across 37,808 deals in 2023. Q4'23 was a particularly soft quarter for the VC market, with global investment falling to $74.9 billion —the lowest level since Q2'19. Europe experienced the sharpest decline in funding—from $18 billion in Q3'23 to $13.8 billion in Q4'23.
Similarly, annual VC investment in Ireland fell to levels not seen since 2019 as investors remain cautious about their dealmaking activities.
Investors are still willing to back innovative companies with market-leading technology and market opportunity.
The Irish market in Q4'23
Several companies attracted solid funding rounds, including Shorla Oncology, an Irish-founded healthcare start-up that develops pharmaceutical therapies to help cancer patients, which raised $35 million in Series B funding. EasyGo, Ireland's largest private car charging network provider, raised $32 million, and LUMA Vision, a developer of a novel four-dimensional (4D) cardiac imaging and navigation platform raised $22M in Series A3 funding.
Commenting on VC activity in Ireland during Q4'23, Anna Scally, Partner, Head of Technology and Media at KPMG in Ireland, said: "Despite the significant challenges faced across the globe, VC investment in Ireland was reasonable in 2023. Investors are still willing to back innovative companies with market-leading technology and market opportunity. Investors are also willing to invest in key sectors, including AI, cleantech and life sciences."
Trends to watch in Q1'24
Given the current headwinds, including the ongoing conflicts in Europe and the Middle East, the continued lack of exit opportunities for VC-backed companies, and uncertainties related to some elections planned or anticipated to occur in 2024, VC investment is expected to remain relatively soft heading into Q1’24.
Other interesting trends include the ongoing surge of investment into AI, increased focus on profitability, the significant slowdown in the time to complete deals and the lack of exit opportunities.
Key highlights – 2023
- Global VC investment fell from $531.4 billion in 2022 to $344 billion in 2023—the lowest level since 2019.
- Global deal volume dropped to a five year low of 37,808 in 2023.
- Global Corporate Venture Capital-participating investment was $172.4 billion in 2023, down from $269.6 billion in 2022.
- CVC-participating investment dropped in all regions in 2023, with the Americas accounting for $96.7 billion, the Asia-Pacific region accounting for $44 billion, and Europe accounting for $28.2 billion.
- Global exit value dropped from $320.6 billion to $224.7 billion year-over-year.
- The median deal size dropped for Series B, C, and D+ deals in every region between 2022 and 2023; D+ deals saw the largest decline, including from $106.8 million to $60 million in the Americas, from $130 million to $59.4 million in Europe, and from $48.6 million to $29.9 million in the Asia-Pacific region.
- Unicorn VC deal flow dropped to a six-year low of $84.5 billion in 2023, down from $139.8 billion in 2022—and a far cry from the record $269.2 billion seen in 2021.
Key highlights – Q4’23
- Global investment fell from $85.4 billion across 8,919 deals in Q4’23 to $74.9 billion across 7,572 deals in Q4.
- The Americas accounted for $40.1 billion in VC investment in Q4’23, down only slightly from Q2’23’s $42.9 billion; the US accounted for $37.5 billion of the America’s Q4’23 investment.
- VC investment in Europe dropped from $18 billion in Q3’23 to $13.8 billion in Q4’23, while the Asia-Pacific region saw VC investment fall from $23.6 billion to $18.8 billion in Q4’23 over the same timeframe—the lowest level since Q1’17.
- Global CVC-participating investment dropped from $44.2 billion in Q3’23 to $33.4 billion in Q4
Get in touch
For further information on this edition of Venture Pulse, please contact Anna Scally, Head of Technology and Media. We'd be delighted to hear from you.
Anna Scally
Partner, International Tax & TMT Sector lead for KPMG in EMA
KPMG in Ireland
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Sandra Farrell
Associate Director of Communications
KPMG in Ireland