KPMG has published its Venture Pulse Q2’21 report, tracking venture capital (VC) activity around the globe. Findings show that 33 deals involving Irish companies closed in the period, totalling $641.5 million. This rebound in activity follows first quarter investment of 24 deals totalling $125.4 million and sets a new record for investment levels, following previous highs of $517 million in Q2’18 and $515.5 million in Q2’19. The period was also buoyed up by three separate $100m plus fundraisings.
Irish health and biotech companies were of particular interest to investors, as were software and technology companies. Earlier stage companies from a variety of sectors in Ireland also secured investment in the period including BAK Bulk Services, a family owned storage, product management and distribution company ($6 million); gifting platform &Open ($7.2 million) and Kastus, a developer of antimicrobial and antiviral surface coating technology ($6.85 million)
The lift in Irish VC investment was also echoed globally, where $157.1 billion was raised across 7,687 deals. The increase in activity is credited to a robust IPO market, high valuations, and a seemingly endless supply of dry powder, according to the report.
The top 5 deals closed in Q2’21 in Ireland include:
Other notable deals in the period included a $26 million raise by Dublin-based cybersecurity automation start-up, Tines; a $25 million raise by Manna drone delivery service and a $17.3 million raise by Vela Games, a Dublin based game studio.
Commenting on the strong VC activity in Ireland during Q2’21, Anna Scally, Partner and Fintech Lead at KPMG in Ireland said: “The record investment levels in Q2’21 demonstrates how well Irish companies have reacted and adapted to the Covid-19 crisis. Irish businesses are providing solutions to issues we couldn’t have imagined two years ago and unsurprisingly, health, biotech and tech solution companies attracted keen investment. We’re seeing support for companies which are developing life enhancing products and services for our ‘new normal’ and I expect that trend to continue through the remainder of the year.”
“Similar to last quarter, investment was spread across a number of sectors and I’m especially encouraged to see innovative green solutions and family businesses featuring in this quarter’s list, along with health and tech companies. As the green agenda continues to be a dominant boardroom issue, we will likely see even more innovative solutions emerge in this space from Irish companies in the future.”
The pace of change is challenging leaders like never before. To find out more about how KPMG perspectives and fresh thinking can help you focus on what’s next for your business or organisation, please get in touch with Anna Scally, FinTech Lead. We’d be delighted to hear from you.