The number of venture capital deals worldwide fell in the first quarter of the year, with 2,716 deals completed globally during the period – compared to 3,201 in the last quarter of 2016.
The latest quarterly report on global VC trends from KPMG also calls out Ireland as a springboard to the European market with its fin-tech sector continuing to show signs of growth.
Despite the decline in the number of deals, venture capital investment grew to $26.8 billion in the first quarter, with the Americas leading VC investment, accounting for $17.8 billion.
US VC firms invested $17.3 billion during the period, while in Asia VC investment grew slightly quarter over quarter to $5.6 billion.
In Europe investment remained relatively flat at $3.4 billion. Corporates participated in 22% of all venture deals in Europe – the highest percentage seen over the last seven years.
Commenting on the research, Partner at KPMG Ireland Anna Scally said: "The slow start to 2017 is not surprising, as macroeconomic matters across the EU and in the US are contributing to investor caution. However, we do expect investor appetites to pick up later in the year as we all come to terms with the new normal.
"Dublin is increasingly being chosen as the European headquarters for multinational companies and growing firms, such as Kabbage. Other companies, especially in Ireland’s strong fin-tech market, increased operations and added headcount throughout the first quarter.
"Brexit is certainly a factor in this trend and is well-positioned to serve as a springboard to the vast European market. Ireland’s straightforward tax regime and strong tech talent base are also motivators," Ms Scally added.