Global startups focused on building financial technology saw their fortunes improve last year as investors doubled, and more, the amount of capital flowing into fintech companies, measured on a quarterly basis.
The comedown from those highs took longer. But, today, looking at Q3 2022 data from CB Insights, it’s clear that the fintech funding boom is behind us; even more, global fintech funding 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’s a well-trod statistic that around one in every five venture capital dollars raised in 2021 went to fintech. It is also no huge surprise that after a heady year, fintech fundraising has fallen along with overall venture activity. But the portion of venture capital disbursement that fintech can lay claim to is also in decline.
Let’s chat 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!
Image and article originally from techcrunch.com. Read the original article here.