TLDR:
– Venture capital activity in 2023 declined by over a third due to geopolitical uncertainties, high interest rates, inflation, and concerns about valuations.
– Total investment in Ireland decreased by over a third to just over $764 million across 101 deals in 2023.
In a challenging year for the venture capital market in 2023, total investment in Ireland declined by over a third, falling from $1.16 billion in 2022 to just over $764 million across 101 deals, according to KPMG’s latest Venture Pulse report. This decline was mirrored globally, with global VC investment falling by over a third in value terms from $531.4 billion in 2022 to $344 billion in 2023. The final quarter of 2023 was described as ‘particularly soft,’ with global investment reaching the lowest level since 2019. Investment levels in Ireland also fell to levels not seen in five years during the quarter. Despite the challenges, some Irish companies managed to attract funding, including Shorla Oncology, which raised $35 million in Series B funding, EasyGo, which raised $32 million, and LUMA Vision, which raised $22 million in Series A3 funding. Looking ahead to 2024, investment levels are expected to remain muted due to uncertainty arising from war and expected elections. Key trends in the industry for 2024 include an increased focus on profitability and a surge of investment into the field of Artificial Intelligence.
