Venture financing stays robust even as volume lowers, says KPMG report

Venture financing stays robust even as volume lowers

KPMG Enterprise’s Global Network for Innovative Startups has launched has the Q2’17 edition of the Venture Pulse Report

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Venture Pulse 2017

The volume of completed venture financings in Ireland has dipped to a new low for the past five years, according to the latest quarterly report on global VC trends from KPMG. Despite this, VC investments remained robust with €97 million recorded in the quarter, down from €106 million in Q1.

 

The number of venture capital deals closed in Ireland in the first quarter of 2017 fell to twelve – compared to 22 in the first quarter of the year – according to KPMG’s quarterly Venture Pulse report. Despite the fall, the figures remain on par with global VC trends where just 1,310 deals were completed during the quarter – down from 2,716 in the first quarter. Total venture capital invested in Ireland in the first quarter of 2017 hit €97 million, down from €106 million in Q1, largely owing to the €57 million financing of Dublin-based Iterum Therapeutics.

Anna Scally, partner at KPMG said:“The figures for Ireland follow a global trend in which deal count was down quarter on quarter, yet deal value remains robust. This is indicative of investors becoming more discerning at the early stage of new investments while investment continues to accelerate in later-stage companies.

“Ireland is working to provide a conducive environment for long-term value creation and is not just focusing on start-ups. That said, the market also views early-stage, disruptive technologies and concepts as an opportunity to jumpstart innovation in their business. As the external environment continues to present some challenges, Ireland remains largely competitive and continues to be seen as a global player, particularly in the fintech space.

 

“One really interesting initiative which is up and running is TechIreland which aims to be the definitive source of data and insights on Irish innovation globally. They are doing that by mapping the companies that are engaged in deep engineering and R&D. This should help companies gain better visibility and stronger prospects for funding, while helping to bring together R&D initiatives across the tech ecosystem,” Scally adds.

 

Global venture capital investment grew to $40.7 billion in the second quarter of 2017. Globally, the United States led VC investment, accounting for $21.8 billion, followed by Asia ($12.7 billion) and Europe ($4.1 billion). Corporate venture capital investment as a percentage of total deal count spiked to 17.6 per cent, representing the highest percentage this decade and almost $20 billion in associated deal value globally.

 

For more, see Venture Pulse, or download the report below.

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For media queries, contact:

Paul Gray, Communications Manager, KPMG Ireland
paul.gray@kpmg.ie; (01) 700 4728

 

Notes to the Editor

Global figures cited are in USD; data for the report provided by PitchBook.
 

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