TLDR:
- Venture capital investment in Irish companies declined by a third in 2023, with total investment dropping to $764 million across 101 deals.
- In 2022, there were 122 investments worth a total of $1.16 billion in Ireland.
Total VC investment globally fell from $531.4 billion in 2022 to $344 billion in 2023, with the fourth quarter of 2023 seeing the lowest recorded level of investment since Q2 2019.
The latest KPMG Venture Pulse report shows that venture capital (VC) investment in Irish companies has decreased significantly in 2023. The total investment in Irish companies dropped to $764 million across 101 deals last year, a decline of 34% compared to 2022, when there were 122 investments totaling $1.16 billion. The report attributes this decline to geopolitical uncertainties, high interest and inflation rates, and ongoing valuation concerns, which made investors cautious. The fourth quarter of 2023 saw a “particularly soft” market for VC investment, with global investment falling to its lowest level since Q2 2019. Europe experienced the sharpest decline in funding, with VC investment dropping from $18 billion in Q3 to $13.8 billion in Q4. However, despite the challenges, several Irish companies still attracted solid funding rounds, including EasyGo, which raised $32 million, and Shorla Oncology, which raised $35 million in Series B funding. The report expects VC investment to remain relatively soft in Q1 2024 due to ongoing conflicts in Europe and the Middle East and uncertainties related to upcoming elections.
