Venture capital (VC) investments in Ireland were at a four year low in 2023 as interest rate increases, high inflation and geopolitical uncertainties reared their head, according to the latest KPMG Venture Pulse report.
A total of 101 VC deals occurred in 2023, representing $764m (€701.9m) in investment. This is a sharp fall from the $1.16bn (€1.07bn) across 122 deals seen in 2022.
The yearly venture capital investment fell to a level not seen since 2019, buoyed by ongoing concerns around inflated valuations and a challenging exit environment.
Globally, VC investments saw a sharp decline, falling from $531.4bn across 51,894 deals in 2022 to $344bn across 37,808 deals in 2023.
Europe saw the steepest quarter-on-quarter decline, dropping from $18bn in Q3 23 to $13.8bn in Q4 23.
A total of 26 VC deals closed in the latest quarter (Q4 23) in Ireland, representing $174.7m (€159.8m) in investment.
The highlights of these deals include the $35m in Series-B funding for Shorla Oncology, a healthcare start-up that develops pharmaceutical therapies to help cancer patient.
Car charging network EasyGo raised $32m, while 4D cardiac imaging firm LUMA Vision raised $22m in Series A3 funding.
“Despite the significant challenges faced across the globe, VC investment in Ireland was reasonable in 2023,” said Anna Scally, head of technology and media at KPMG Ireland.
“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.”
VC funding concerns are not expected to abate in 2024, with concerns surrounding conflicts in Europe and the Middle East, uncertainties around global elections and continued lack of exit opportunities for VC-backed companies.
