LONDON—Global investments in the fintech sector fell by more than 30% last year from 2021’s record high levels, according to new research by KPMG.
For the conclusions published as part of its Pulse of FinTech report, KPMG said it analyzed all private equity, venture capital and merger and acquisition activity in the fintech sector worldwide. In 2021, these investments totaled $239 billion, last year that number was “only” $164 billion, Consultancy.eu stated in its analysis.
The drop comes despite a solid start for the fintechs in 2022, the analysis notes.
In the first quarter of 2022, nearly €81 billion was pumped into fintech – the second-highest quarterly amount since 2019.
“However, investments cooled off rapidly in the following three quarters amid unfavorable macroeconomic and geopolitical developments,” Consultancy.eu noted.
Second Year of Decline
The number of deals similarly dropped significantly, down from 7,321 in 2021 to 6,006 in 2022.
“Total investment was still the third-highest ever, while the number of fintech deals came second only to 2021’s record high. 2022 was a particularly excellent year for regtech, with investment growing quite significantly year-over-year,” said KPMG’s Global Fintech Leader Anton Ruddenklau.
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