KPMG has released two reports, Venture Pulse Q2’24 and Pulse of Fintech H1’24, which show that Ireland is following the global trend with investment up in the broader VC market, investment in fintech, is also up – “bucking the global trend.”
24 venture capital (VC) deals closed in Ireland “in Q2’24, worth $237.5 million, up 38 per cent from Q2’23,” according to the just released Venture Pulse Q2’24 report.
10 FinTech deals closed in Ireland in H1’24 “worth $140.8 million, an increase from the $59.2 million across 9 deals seen in H1’23 – which was sharply skewed by one large transaction,” according to the Pulse of Fintech H1’24 Report.
The most significant deal in Q2 “was $110 million raised by biotech SynOx Therapeutics — a Dublin-based drug discovery company focused on developing treatments for diffuse tenosynovial giant cell tumors.”
Venture Pulse and Pulse of Fintech reports “produced by KPMG analyse the latest global and Irish trends in investment data and provide insights from both a global and regional perspective.”
All figures cited are in USD; data for the reports is provided by PitchBook.
Irish and European investors are more confident this quarter. However, the uncertainties created by the 2024 elections in the US and Europe, together “with a sluggish IPO market and relatively high interest rates, mean they will remain cautious.”
The latest edition of the KPMG Venture Pulse report “reveals that venture capital (VC) investment in Ireland experienced a pickup in Q2’24 and saw 24 deals raising $237.5 million an increase of nearly two fifths (38 percent) compared to $172.5 million across 33 deals for the same period last year.”
VC investors showed increasing “willingness to make bigger bets again in Q2’24, although their focus was somewhat narrow — on areas like AI, biotech, and fintech.”
Meanwhile KPMG’s Pulse of Fintech report for H1’24 has also “been released, showing fintech activity also increased significantly in the first half of this year.”
Globally, VC investment soared “from US$75.4 billion to $94.3 billion between Q1’24 and Q2’24, fuelled by nine $1 billion mega-deals—the second largest total ever seen in a single quarter.”
While VC investment rose to a five-quarter high, deals volume “fell to 7,691—the lowest level seen globally since Q3’16. AI accounted for over half of the ten largest funding rounds globally during Q2’24 as VC investors continued to pour money into the space.”
A diverse range of start-ups attracted solid funding rounds “during Q2’24 and four deals accounted for three quarters of all Irish VC investment this quarter.”
The top four deals included “a $110 million raise by biotech SynOx Therapeutics, a drug discovery company focused on developing treatments for diffuse tenosynovial giant cell tumors.”
XOCEAN, the ocean data company, “raised $32.5 million in a Series B funding round and digital health and wellbeing provider Spectrum.Life secured $18.3 million in fresh funding.”
The 2023 KPMG Global Tech Innovator Ireland finalist Nory, “a fintech company focused on using AI to help restaurants operate more efficiently, also raised $16.1 million during the quarter.”
Commenting on VC activity in Ireland during Q2’24, Anna Scally, EMA Head of Technology, Media & Telecommunications and Head of Technology and Media at KPMG in Ireland, said:
“Irish and European investors are more confident this quarter. However, the uncertainties created by the 2024 elections in the US and Europe, together with a sluggish IPO market and relatively high interest rates, mean they will remain cautious, and it’s unlikely to see VC investment return to the levels reached in 2021 and 2022. It’s particularly encouraging to see investment and interest in Irish innovative solutions in biotech, ocean data tech, healthtech and AI.”
Heading into Q3’24, VC investment globally and in Ireland is “expected to remain relatively steady, with AI continuing to attract a large share of funding.”
Scally added:
“This surge highlights the growing confidence in Irish startups and Ireland’s innovative potential; we only have to look at the volume of exceptional entries and finalists in this year’s Global Tech Innovator competition 2024; the Irish winner will be announced in September.”
AI will likely remain a very hot area in addition “to energy and cleantech.”
As of January 17, 2025, financial institutions in the EU will “be required to comply with the Digital Operational Resilience Act (DORA).”
Given the complexities associated with compliance, there will likely “be growing interest in regtechs focused on helping companies comply.”
The first six months of 2024 were “particularly challenging for the fintech market globally, according to KPMG’s Pulse of Fintech H1 2024 report.”
Total global fintech investment—including VC, PE, and M&A deal value—fell “from $62.3 billion across 2,287 deals in H2’23 to $51.9 billion across 2,255 deals in H1’24.”
However, the trend in Ireland is positive “as $140.8 million was raised across 10 deals in H1’24 compared to $59.2 million across 9 deals in H1’23.”
It is worth nothing however that activity in H1’24 “was skewed significantly by one large transaction – the $109 million buyout of Ireland-based SoftCo by Keensight Capital.”
Other notable deals for the period were ones by Zartis, “offering software consulting services, and mobile payment platform CleverCards, both raising just over $10million and $8 million respectively.”
