Monday 22 July 2019

Intercom leads way in €436m VC boost

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Gavin McLoughlin

Gavin McLoughlin

Irish companies raised more than $500m (€436.33m) in venture capital in the first half of 2018, according to analysis compiled by KPMG.

The largest round was a $125m fundraising by Intercom, which makes customer messaging products for businesses' websites.

Other deals included a $64m raise by pharma business Sublimity Therapeutics which is looking to get approval for a drug aiming to treat ulcerative colitis.

Phorest, a company that specialises in computer software for hairdressers, spas, and beauty salon owners, raised over $23m.

Anna Scally, a partner and head of technology and media at KPMG Ireland, said deal volume had declined in the second quarter compared to the first.

"However, to date in 2018, the amount raised by Irish companies (Republic of Ireland only) is over $500m, made up of $377.57m across a number of companies plus the $125m Intercom deal. This is considerably higher than the same period last year, with an increase also in the number of deals year on year," she added.

KPMG said that on a worldwide basis, venture capital investment hit a new record high in the second quarter, reaching $69.8bn across 3,108 deals.

In Europe, $5.6bn was invested in the second quarter, including a $250m round by fintech business Revolut. The accountancy giant said venture capital activity globally is expected to remain strong in the third quarter of 2018.

"Autonomous driving, healthtech and biotech are expected to be big winners over the next few quarters, in addition to blockchain," the company said.

Irish Independent

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