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KPMG Fintech Pulse H1’22 Report: Global Fintech Investments $107.8B across 2,980 Deals

KPMG | Sep 2022

KPMG pulse of fintech report H122 - KPMG Fintech Pulse H1'22 Report:  Global Fintech Investments $107.8B across 2,980 Deals

  • Global investment in fintech falls to $107.8 billion despite robust VC funding
    • Global investment in fintech fell from $111.2 billion across 3,372 deals in H1’22 to $107.8 billion across 2,980 deals in H1’21, mirroring the decline in investment experienced in the broader technology sector.
    • Total fintech investment and deals volume declined in both the Americas and EMEA regions, while the Asia-Pacific region attracted a new annual high of fintech investment amidst a decline in the number of deals.
  • US attracts vast majority of fintech investment in Americas
    • The US accounted for $34.9 billion of fintech investment in the Americas during H1’22, a drop from $49.7 billion in H2’22. Fintech investment outside of the US dropped even more prodigiously in the wake of the rapid rise in global geopolitical and macroeconomic uncertainty.
    • Brazil and Canada seeing declines in investment greater than 50 percent between H2’21 and H1’22. Brazil saw fintech investment drop from $3.7 billion to $1.4 billion, while Canada saw investment fall from $1.9 billion to $810 million.
  • Investors turning focus to profitability and cash flow
    • Given rising interest rates, increasing levels of inflation, and growing concerns about an economic recession, fintech investors across the Americas enhanced their focus on profitability, top-line revenue growth and cash flow when evaluating targets and companies within their portfolios.

See:  CB Insights: Canadian Fintech Funding Dropped 70 Percent in Q2-2022 YoY

  • Trends to watch for in H2’22
    • Market corrections — including declining valuations, increasing M&A and a growing number of distressed businesses — in light of the predicted recession and the over-enthusiasm and over-investment in key areas over the last 18 months.
    • Continued focus on embedded solutions, including payments, finance, and insurance.
    • Big tech companies and other corporates prioritizing partnerships, while also looking for opportunities for add-ins at bargain prices compared to recent years.
    • Growing focus on B2B solutions aimed at improvement of infrastructure or on the optimization of operational activities like AR/AP.
    • Blockchain and crypto space takes hit, still sees big deals.  Slowdown in crypto interest and investment, particularly retail firms offering coins, tokens and NFTs.
    • Increasing focus on underdeveloped fintech markets, including jurisdictions in Africa.
    • Payments space stays hot in eyes of investors in H1’22, but could taper off
    • C investment in fintech remains robust as Europe sets new record

NCFA Jan 2018 resize - KPMG Fintech Pulse H1'22 Report:  Global Fintech Investments $107.8B across 2,980 DealsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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