Venture Pulse report highlights the current trends, opportunities and challenges faced by the venture capital (VC) market, both globally and in key regions around the world
The number of venture capital deals worldwide fell in the first quarter of 2017 with 2,716 deals completed globally during the period - compared to 3,201 in the last quarter of 2016 - according to the latest quarterly report on global VC trends from KPMG. The report calls out Ireland as a springboard to the European market with its fintech sector continuing to show signs of growth.
Anna Scally, Partner at KPMG in Ireland said: “The slow start to 2017 is not surprising, as macroeconomic matters across the EU and in the US are contributing to investor caution. However, we do expect investor appetites to pick up later in the year as we all come to terms with the new normal.
“Dublin is increasingly being chosen as the European headquarters for multinational companies and growing firms, such as Kabbage. Other companies, especially in Ireland’s strong fintech market, increased operations and added headcount throughout the first quarter.
“Brexit is certainly a factor in this trend and is well-positioned to serve as a springboard to the vast European market. Ireland’s straightforward tax regime and strong tech talent base are also motivators,” Scally adds.
Despite the decline, venture capital investment grew to US$26.8 billion in the first quarter of 2017. Globally, the Americas led VC investment, accounting for $17.8 billion. The US made up the lion’s share, with $17.3 billion invested. In Asia, VC investment grew slightly quarter over quarter to $5.6 billion, while in Europe investment remained relatively flat at $3.4 billion. Corporates participated in 22 percent of all venture deals in Europe –the highest percentage seen over the last seven years.
All figures cited are in USD; data for the report provided by PitchBook.
KPMG in Ireland employs 2,500 people across its audit, tax and advisory services from offices in Dublin, Belfast, Cork and Galway. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services.