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Laxman Pai, Opalesque Asia: Global fintech funding saw a massive deceleration in the last quarter of 2022, registering only 599 rounds for $8 billion, compared to nearly 1,000 rounds worth $26 billion in the year-ago period, said a study. The fintech funding fell by a third globally to $63 billion in 2022.
According to S&P Global Market Intelligence's Global Fintech Funding Trends report, the current uncertainty, amplified by the mid-March collapse of Silicon Valley Bank, will likely sink the amount of capital raised by fintech this year to where it was in 2020 when COVID-19 brought much of the world to a standstill.
The report pointed out a challenging macro environment will likely nudge venture capitalists (VCs) and startups to go back to the drawing board to reassess their risk tolerance and the market opportunity. "Across financial verticals, we expect investor rotation into B2B and out of B2C to accelerate in 2023," it said.
As fintech-focused venture capitalists turned off the equity spigots in 2022, Latin America witnessed the sharpest fall in funding at 59%, followed by North America at 34%. EMEA and APAC regions contracted 19% and 25%, respectively.
The share of global venture capital attracted by individual countries somewhat correlated with their share of global GDP. However, it is heavily skewed in favor of the US, the UK, and India. The three markets pulled more than half of fintech funding from 2021 to 2022 while representing only one-third of th...................... To view our full article Click here
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