Global FinTech Funding
The annual State of Fintech report by CB Insights shows significantly lower activity in 2022 than 2021, consistent with wider capital markets trends. It is worth noting however that, while down, 2022 levels still the second highest on record.
The total value and number of deals for 2022 were USD 75.2bn raised in 5,048 deals, down from record highs of USD 139.8bn and 5,474 deals in 2021.
Early-stage deals accounted for 68% of the total and Venture Capitalists continue to be the largest investor group. Payments, Banking and Wealthtech were the biggest recipients. The US accounted for approx. 35% of the market, with Europe at 26% and Asia at 23%.
Average deal size fell 40% globally in 2022, with Africa being notable as the only region where median deal size increased.
Mega funding round deals decreased by 60% in value terms and 52% in number of deals. Q4 2022 was significantly lower than Q1, reflecting investors' conservative sentiment in the face of rising interest rates, economic volatility and tighter liquidity.
FinTech has now produced 312 unicorns, however the birth rate of 68 in 2022 was slowed significantly lower than in prior years.
M&A activity fell from 924 to 742 deals, IPOs 82 to 23, and SPACs 19 to 9.
Source: CB Insights