Saturday 22 July 2017

Venture financing volume dips to five-year low

In total, 12 venture capital deals were closed in Ireland in the second quarter of the year
In total, 12 venture capital deals were closed in Ireland in the second quarter of the year

Ellie Donnelly

The volume of completed venture financings in Ireland has dipped to a five-year low, according to the latest quarterly report on global venture capital trends from KPMG.

Despite the dip, venture capital investments remained robust, with €97m recorded in the three months to the end of June. This is down from €106m in the first three months of the year.

Of the €97m, €57m was raised by Dublin-based Iterum Therapeutics.

In total, 12 venture capital deals were closed in Ireland in the second quarter of the year, down from 22 in the first three months of 2017.

Commenting on the report, Anna Scally, partner at KPMG, said that the figures for Ireland followed a global trend in which the deal count was down quarter on quarter, yet deal value remained 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," Ms Scally said.

Despite the fall, the figures remain on par with global venture capital trends, where just 1,310 deals were completed during the three months to June 2017, down from 2,716 in the first quarter.

"As the external environment continues to present some challenges, Ireland remains largely competitive and continues to be seen as a global player," Ms Scally said.

Overall, global venture capital investment grew to $40.7bn (€35.6bn) in the three months to June.

Globally, the US led venture capital investment, accounting for $21.8bn, followed by Asia with $12.7bn, and Europe which recorded $4.1bn of investment.

Irish Independent

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