Global fintech funding slipped 18% to $28.8 billion in the first quarter – the largest percentage drop in quarterly funding since 2018 – according to the latest data from CBInsights. – — the largest percentage drop in quarterly funding since 2018, according to the latest report from CBInsights.
Although volumes rose, the number of $100 million+ plus mega rounds fell.
Europe bucked the trend, with funding for the fintech sector rising by 39% to $7.9 million, despite a dip in deal volumes.
Canada also
 had a stellar quarter, reporting a significant 80% increase in funding, bringing in $615 million on 39 deals.
By contrast. the US saw a 27% drop in funding to $13.3 billion on 489 deals while Asia plummeted by 44% to $4.8 billion, although deals hit a record high of 388.
Funding also fell in Latin America and Africa, even though the number of deals rose.
CBInsights also reported that bank funding reached a four-quarter low, effectively halving between the second quarter of 2021 and the first quarter of 2022.
The report also noted that 34 new unicorns entered the market at the start of the year, with half coming from the US. Europe had 11Â in the first quarter, bringing its total to 54.
Drilling down into industry sector, capital markets start-ups was the star with a healthy 16 hike in spending – the only sector to record an increase.
Insurtech, banking, payments and wealth tech all recorded declines in funding.
To date, outside of the US, the UK has led the pack with a separate study from trade group Innovate Finance showing that investments in the country’s fintech companies more than tripled to $11.6 billion last year.,
Separate research from Deloitte found roughly 2,500 fintech companies in Britain albeit the majority are based in London, which according to the accountancy firm is the third biggest fintech hub in the world.
However, this does not translate into initial public offerings as few fintechs opt for London when it comes to selling shares on the stock market — something the government is trying to change as it looks to generate post-Brexit growth.
©Markets Media Europe 2022
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