TLDR
- Venture capital investment in Ireland dropped 80% year-on-year in Q1
- Global VC investment declined to its lowest level in nearly five years
Venture capital investment in Ireland declined by 80% year-on-year in the first quarter of 2024, with only 17 deals worth a combined $34.2m compared to 24 deals worth $172.8m in Q1 2023. Despite the overall decline, interest in Ireland’s technology sector remained high, as shown by SoftBank’s acquisition of Cubic Telecom for €473m. The global VC investment also fell to its lowest level for nearly five years in Q1, dropping from $83.8bn across 9,458 deals in Q4 to $75.9bn across 7,520 deals in Q1.
Europe was the only region that saw an increase in the value of VC deals, rising from $15.1bn to $17.9bn quarter-on-quarter. However, deal numbers decreased from 2,419 to 1,798. In the Americas, VC investment fell from $43.4bn to $38.2bn, and globally, corporate-participating VC investment also declined.
In Ireland, the largest VC deal of the quarter was $7m raised by Galway medtech Ceroflo, with significant raises also seen in OOHPod, MOBY Bikes, and Coroflo. Despite the slow start to the year, interest in Ireland’s technology companies remains positive, particularly in the medtech, AI, and cleantech areas. Anna Scally, partner and head of technology and media at KPMG Ireland, highlighted the potential for tech innovators to accelerate their growth on a global stage through funding and guidance.
Irish VC investors are expected to remain cautious due to macroeconomic challenges and geopolitical issues. Investments in cleantech, ESG reporting, medtech, AI, and GenAI are likely to continue, but companies will need to navigate regulatory requirements, such as the AI Act passed by the European Parliament. Overall, the outlook for VC investment in Ireland remains positive despite the challenges faced in the first quarter of 2024.
