Venture Capital investment in Ireland rocketed in the first quarter of the year, totalling $668m across 28 deals, according to the latest KPMG Venture Pulse report.
It’s more than a 19-fold increase compared to the same period last year, when just $34m was invested across 17 deals.
The remarkable jump was chiefly driven by three deals raising over $100m each in the first quarter.
Of those the biggest deal was the $125m secured by the AI-powered productivity software company Tines, achieving a valuation in excess of $1bn.
Gavin Sheehan, Partner, Deal Advisory at KPMG in Ireland, said VC fundraising in Q1, 2025 was led by Tines, XOcean and Fire1.
“Globally, a lower deal count quarter-on-quarter is reflective of a more cautious sentiment given broader geopolitical uncertainty since the turn of the year,” he said.
“Notwithstanding these challenges, VC investment in Ireland mirrored international trends in terms of increased deal sizes and later stage investment with robust interest in the AI, big data and medtech sectors.”
Overall, Global VC investment surged from $118.7bn in Q4, 2024, to an eleven-quarter high of $126.3bn in Q1 this year, despite ongoing geopolitical conflicts and tensions, continued concerns about global trade and tariffs, and the delay of a major reopening in the IPO market.
The overall increase in deal value was largely driven by a series of mega-rounds by AI companies, including a record-setting $40bn raise by OpenAI.
In fact, the report noted AI dominates the top ten deals.
Meanwhile, VC investment in Europe held steady in Q1 at $18bn, although deal volume declined from 2,314 to 1,883 quarter-on-quarter.
A growth in megadeals — including five transactions at or over $500m — highlighted the shifting focus among VC investors towards larger, later-stage opportunities.
The Irish market surged as a result of the Tines deal and a $120m raise by medical device company Fire1, as well as a $120m raise by ocean data services company XOcean.
Fintech and medtech sectors in Ireland continue to attract significant interest from VC investors given their robust innovation ecosystems and strong talent base, with AI solutions also receiving significant investment over the quarter.
However, the report noted the sentiment of VC investors in Ireland was one of caution in the latter half of the year amid rising geopolitical uncertainties.
Heading into Q2, deal volume may become subdued as investors in Ireland and globally exercise caution amid trade tensions with the US.
The implications associated with any US tariffs remain to be determined; both investors and startups are expected to be quite focused on assessing potential impacts on both general operations and potential expansion plans.
“Despite these uncertainties, industries such as AI, health and biotech, and fintech are expected to maintain their appeal for investment and particularly for established start-ups with proven traction,” Mr Sheehan added.
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