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HomePeer to Peer LendingFintech startup funding fell by 13pc final yr

Fintech startup funding fell by 13pc final yr

Fintech startup funding fell by 13 per cent in 2022, with $11.2bn (£9bn) invested final yr.

The variety of funding rounds which raised $100m or extra diminished by 34 per cent, whereas the variety of newly-minted unicorns fell to simply six corporations in 2022, in contrast with 14 in 2021.

In keeping with a brand new UK fintech report from SaaS-based market intelligence platform Tracxn, the UK stays one of many main fintech hubs globally. When it comes to startup funding, fintech is the main section within the nation.

Learn extra: Fintech lenders name on authorities to spice up SME entry to finance

Final yr’s funding drop was largely blamed on a 26 per cent fall in late-stage funding, from $9.8bn in 2021 to $7.2bn in 2022.

Nevertheless, early-stage investments rose by 34 per cent to $3.4bn this yr, in contrast with $2.6bn final yr.

Throughout the first quarter of 2022, Tracxn recorded the best ever quantity of funding within the UK fintech sector. $8.4bn was invested in UK fintechs in the course of the first half of the yr, in contrast with simply $2.8bn in the course of the second half of the yr.

Learn extra: Is now time to search for a job in fintech?

“This plunge in investments was primarily because of the ongoing battle, which has elevated the price of power and different dependent merchandise and brought on a slowdown in financial exercise throughout the area,” mentioned Tracxn.

“Nevertheless, the UK’s fintech sector is doing comparatively higher when it comes to funding, compared with international locations such because the US, China, and India.”

Tracxn’s analysis additionally discovered that funds, funding tech, cryptocurrencies, and banking tech had been the top-performing enterprise fashions when it comes to funding in 2022. Regardless of this, the banking tech and funds sectors noticed their funding ranges drop by 55.7 per cent and 31.4 per cent, respectively, compared with 2021.

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