FinTech Corporate Finance
The annual FinTech Almanac by FT Partners reports a slowdown in fintech corporate finance after a record breaking 2021. This is consistent with other areas of the market.
3,647 deals occurred in 2002, equivalent to last year but these progressively trended down during the year as inflation, economic and war fears took hold. Q1 2022 deals were 1,134 but Q4 2022 deals were 676. The total value of deals fell 58% USD 217.7bn.
Private company financing fell 38% to USD 88.1bn although the number of deals was up by 1%. Median deal sizes fell in all life stages except Seed and Series A which increased slightly. A bright spot was strong activity in Asia and Africa. Crypto and Blockchain deals also held up well considering their price of digital assets.
IPOs were just one due to market conditions and a rush to the market in 2021.
M&A totalled USD 129.6bn for 1,270 deals. Average deal sizes fell, exits fell and SPAC activity fell.
FT Partners remain optimistic about the long-term prospects for FinTech due to the early stage of FS industry digitalisation, emerging market volumes and consumer adoption of app-based solutions. They expect M&A activity to return with wider market confidence.
Source: FT Partners