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When it came to fintech news, we saw a pretty sluggish first half of 2023, and that is evidenced by the sobering funding statistics we cover below. But things feel like they are starting to pick up, as evidenced by our crowded inboxes. Read on for more details!
Deal volume is way down
It’s no secret that venture capital investment had slowed down this year, and last week, we saw just by how much.
S&P Global recently reported that funding into global fintech companies dove 49% year over year, to $23 billion during the first half of 2023. Round values declined, on average, 12% for seed firms and 14% for early-stage firms in 2022, and round values for growth-stage and mature startups were even lower, 43% and 66%, respectively.
Even more startling, we also saw a dramatic decline in the number of funding rounds raised during that time period — just 1,178 investments were made: a 64% drop from the same period in 2022. In the second quarter of 2023, there were 522 deals that closed, down from 656 in the first quarter and down from the 944 investments made in the second quarter of 2022.
Investor sentiment was already starting to wane …
