Third best year of fintech investment despite large drop from 2021 high

Press release

Published March 19th, 2023 - 07:49 GMT

Third best year of fintech investment despite large drop from 2021 high

Manav Prakash - Advisory Partner.

Highlights

Investors prioritize profitability and cash flow as macroeconomic factors erode and valuations decline

ALBAWABA - Global fintech investment across M&A, PE, and VC fell to $164.1 billion across 6,006 deals in 2022, down from a record high of $238.9 billion across 7,321 deals in 2021.

But still the third best year for fintech investment ever and the second strongest year for deal volume, according to KPMG's Pulse of Fintech H2'22 report. The drop-off in fintech investment between H1’22 and H2’22 highlights rapidly shifting market conditions. Payments remained the strongest area of fintech investment globally, while investment in crypto and blockchain fell. EMEA saw a large decline in fintech funding year-over-year.

KPMG predicted that M&A deal sizes will be relatively smaller, B2B solutions will continue to attract solid investment, interest in non-crypto blockchain-based solutions will grow, AI-driven fintech solutions will gain more attention, regulators will put more scrutiny on the crypto space, and ESG-focused fintechs will see growth.

Background Information

KPMG

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