KPMG Counts 11 VC Deals In Q1 2019

29 Apr 2019 | 09.42 am

KPMG Counts 11 VC Deals In Q1 2019

Largest investment was $32m for Atlantic Therapeutics

29 Apr 2019 | 09.42 am

KPMG has published its Venture Pulse Q1 2019 report, tracking venture capital activity around the globe.

The research shows that globally overall VC investment dropped from record heights of $71 billion in Q4 2018 to $53 billion in Q1 2019, due to a decline in Chinese investment, among other factors.

In Ireland, VC investment in Q1 was down significantly on the previous quarter.

Anna Scally (pictured), Head of Technology and Media & Fintech Lead at KPMG, commented: “The pattern of venture investing in Ireland can be quite volatile quarter to quarter and can be heavily influenced by one or two large fundraisings. Expectations are that the numbers will rebound significantly in Q2 2019.

“The healthcare and the technology sectors were the key drivers of activity so far this year. Regionally, Galway based companies featured significantly with Atlantic Therapeutics, Perfuze and Enterasense all closing significant deals in the first quarter this year.”

Galway-based medtech company Atlantic Therapeutics closed a $32 million Series B round, which was led by a number of international funds with local fund Atlantic Bridge Ventures, through its China-Ireland Growth Tech Fund, participating. Existing investors Seroba Life Sciences and Earlybird Venture Capital also followed their earlier investments in the company.

Galway-based medtechs Perfuze and Enterasense raised $3.4 million and $1.2 million respectively, with Enterasense also securing secure a further €2.5 million in Horizon 2020 grants. Dublin and Boston based HealthBeacon also secured $12 million in their Series A round.

Other companies that raised funds in Q1 2019 included CroíValve, a spinout from Trinity Centre for Bioengineering, which raised $3.7 million in a record angel round and in the technology sector, ChannelSight raised $10 million to further develop its software-as-a-service (SaaS) platform and to allow it to expand into more markets.

The funding figures are provided by Pitchbook, which is why they are denominated in US dollars.

Across Europe, deal volume plummeted from 882 deals in Q4 2018 to only 487 in Q1 2019. However, total VC capital investment in the region was $6.5 billion, just shy of the record high established in Q4 2018.

Scally added that funding in Ireland will be boosted this year with the recent announcement by Enterprise Ireland of its new €175 million Seed & Venture Capital Scheme (2019-24).

The Scheme is aimed at providing substantial additional funding for high-growth Irish companies with the potential to start and scale their businesses from Ireland.

Pre-seed investments, such as those made by accelerators, convertible debt investments, or post venture and private equity investments are not captured in KPMG’s Venture Pulse.

 

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