Global Startups Targeted on building financial technology saw their fortunes improve last year as investors doubled, and more so, the amount of capital flowing into fintech companies as measured on a quarterly basis.
The comedown of those highlights took longer. But, today, looking at Q3 2022 data from CB Insights, it is clear that the fintech financing boom is behind us; In fact, global fintech financing activity is now back to where it was before 2021, indicating that last year was more aberration than new normal for the startup category.
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It is a well-known statistic that about one in five venture capital dollars raised in 2021 went to fintech. It’s also no big surprise that after a tumultuous year, fintech fundraising has plummeted, along with overall corporate activity. But the proportion of venture capital payout that fintech can claim is also decreasing.
Let’s go through the numbers and then ask ourselves what a new valuation landscape, a changed venture capital market and a frozen IPO market mean for fintech startups large and small. To work!