In short
- 17 venture capital (VC) deals worth $34.19 million closed in Ireland in Q1'24, down 80 percent from Q1'23
- Softbank closed acquisition of majority stake in Cubic Telecom marking one of the biggest ever software deals in Ireland
- A diverse range of start-ups continued to attract VC funding in Ireland during Q1'24, although at relatively small deal sizes
- This quarter's largest deal was $7 million raised by Galway-based medtech firm Ceroflo
- The Q1'24 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.
VC investment in Ireland experienced a very slow start to the year, attracting just $34.19 million across 17 deals during Q1'24, down 80 percent from the stronger Q1'23, which recorded $172.8 million across 24 deals, according to the latest quarterly KPMG Venture Pulse report.
Interest in Ireland’s technology companies remained positive, however, evident in Japan-based SoftBank closing its acquisition of a majority stake in the Dublin-based automotive software company Cubic Telecom for €473 million. This investment marks one of Ireland’s biggest-ever software deals with Cubic Telecom reaching a valuation of €900m as a result.
Lowest global VC investment in five years
But Ireland was not an outlier. Global VC investment fell to the lowest level in nearly five from $83.8 billion across 9,458 deals in Q4'23 to $75.9 billion across 7,520 deals in Q1'24 amid geopolitical tensions, the extended drought in exits among VC-backed companies, and a continued pullback in investment at later deal stages.
Meanwhile, Europe was the only region to see VC investment increase this quarter—from $15.1 billion in Q4'23 to $17.9 billion in Q1'24, although the number of deals dropped from 2,419 to 1,798 over the same period.
Given the increasing regulatory requirements, VC investment in cleantech and ESG reporting is expected to remain strong.
The Irish market in Q1’24
A diverse range of start-ups attracted VC funding in Ireland during the first quarter, although at relatively small deal sizes. This quarter's largest deal was $7 million raised by Galway-based medtech firm Ceroflo; this investment round will develop a novel technology for the treatment for intracranial atherosclerotic disease, a leading cause of stroke. The next three biggest deals by size were Dublin-based OOHPod, the smart parcel locker service, which raised $5.9 million, Dublin-based MOBY Bikes, the bike sharing start-up, which raised $3 million in equity funding through the Employment & Investment Incentive Scheme, which offers tax relief to investors in qualifying companies and Dublin-based medtech company Coroflo, raised $3 million in equity funding as it prepares for production of its breastfeeding monitor this year.
Commenting on VC activity in Ireland during Q1'24, Anna Scally, Partner, Head of Technology and Media at KPMG in Ireland, said: "Despite a very slow start to the year, interest in Ireland's technology companies remains reasonably positive, with opportunities for companies in the medtech, AI and cleantech areas in particular. Having recently launched the all-Ireland KPMG Private Enterprise Global Tech Innovator competition, we look forward to searching for Ireland's next top tech innovators and anticipate a lot of interest from tech innovators who are developing disruptive solutions but need funding, guidance and expertise to support and accelerate their growth on a global stage.”
Trends to watch in Q2'24
Heading into Q2'24, Irish VC investors are expected to remain very cautious as they assess how ongoing macroeconomic challenges and geopolitical issues could unfold, including uncertainties related to upcoming elections in the US and Europe. Given the increasing regulatory requirements, VC investment in cleantech and ESG reporting is expected to remain strong. Investments in medtech AI and GenAI are also expected to continue.
Scally added, "During this quarter, the European Parliament agreed to the text of the world's first binding law on AI, the Artificial Intelligence Act. This Act aims to ensure safety and compliance with fundamental rights while encouraging innovation within the EU. Once it becomes law, which could be as soon as the end of Q2'24, its impact will start to be felt within six months, with full implementation taking effect within 24 months. Companies will now have to factor the provisions of this Act into how they develop AI products and services to be rolled out in the European market."
Global key highlights – Q1’24
- Global VC investment dropped from $83.8 billion in Q4’23 to $75.9 billion in Q1’24; the number of VC deals dropped from 9,458 to 7,520 over the same period.
- VC investment in Europe rose from $15.1 billion in Q4’23 to $17.9 billion in Q1’24, while it dropped from $43.4 billion to $38.2 billion in the Americas—including from $40.1 billion to $36.6 billion in the U.S.—and from $22.9 billion to $18.9 billion in Asia.
- Global corporate-participating VC investment fell from $40.8 billion to $37.3 billion between Q4’23 and Q1’24, despite an increase from $18.7 to $20.1 billion in the Americas.
- Global exit value dropped from $49.8 billion in Q4’23 to $30.7 billion in Q1’24.
- Exit activity in the Americas rose from $12.5 billion to $18.6 billion between Q3’23 and Q4’24, while exit activity in Asia dropped from $33.9 billion to $10 billion, and from $3.4 billion to $2.1 billion in Europe.
- Total global exit value was very low across exit types in Q1’24, with just $23.2 billion in IPO exit value, $6.9 billion in M&A deal value, and $0.56 billion in buyout deal value.
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
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