Irish companies raised more than $247m (€216m) in venture capital funding in the second quarter of 2018, bringing the total for the year to end-June to more than $500m, or €437m.

Irish company Intercom raised $125m and 14 others raised $122.47m between them in the second quarter, and the 15 deals represented an increase in the number of transactions so far this year compared to the same period last year.

That’s according to KPMG’s Venture Pulse Q2 2018 report, tracking venture capital activity around the globe, which reached a new quarterly record.

KPMG partner Anna Scally said: “In Ireland, VC deal volume declined between Q1 2018 and Q2 2018. However, to date in 2018, the amount raised by Irish companies (Republic of Ireland only) is more than $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. In Q2 2018, Intercom raised $125m and Sublimity Therapeutics, a Dublin based oral drug delivery company raised $64m. 

In Association with

“Phorest, a SaaS company that specialises in computer software for hairdressers, spas, and beauty salon owners, raised over $23m and Neurent Medical, a Galway medtech startup, raised over $11m.”

Highlights from the KPMG report include:

• Globally, venture capital investment hit a new record high in Q2, reaching US$69.8 billion for 3,108 deals
• Global VC investment rose from $58 billion in Q1 to $69.8 billion, a solid increase buoyed by five $1 billion+ megadeals
• Corporate participation in global VC deals continued to rise, reaching a record 22% of overall volume, with associated deal value hitting nearly $46 billion
• Global first-time venture financing volume remained subdued during the second quarter and is likely to show its lowest annual total in a decade
• Asia set a new record for VC investment, with $35.9 billion raised in 466 deals. Chinese companies represented eight of the top 10 deals globally, led by a massive $14 billion deal by Ant Financial.
• The US saw nine deals valued at more than $250m during the quarter, topped by deals by Faraday Future and Lyft. California continued to dominate as the US VC market leader, accounting for nine of the top 10 deals in the US
• While overall investment in Europe remained strong at $5.6 billion, deal volume, in particular for angel/seed-stage deals, declined for the fifth straight quarter.

Top European deals for the quarter included London-based fintech Revolut ($250m), Estonian transport company Taxify ($175m), and London-based Freeline Therapeutics ($119m). First-time financing remained well off last year’s volume, with only 310 deals in the first half of 2018 versus 1,100 in all of 2017.

Global venture capital activity is expected to remain strong into the third quarter. The impact of tax reforms in the US, a significant amount of dry powder, and the continued flow of funding into the VC world are expected to keep the VC market strong. Autonomous driving, health tech and biotech are expected to be big winners over the next few quarters, in addition to blockchain.