Global investment in fintechs collapses

KPMG Pulse of Fintech: Down by more than 50 percent

KPMG Pulse of Fintech: Down by more than 50 percent

Berlin, Juli 31st 2023

Investments in start-ups from the financial services sector have slumped drastically in the first half of this year compared to the previous year. While global venture capital investments from January to June 2022 still amounted to 107.8 billion dollars, this sum fell by more than 50 per cent to only 52.4 billion dollars in the first six months of this year. This is the result of the KPMG Pulse of Fintech, for which data from PitchBook was analysed.

Logistics and "green" fintechs with strong figures

Nevertheless, some bright spots can be identified. For example, supply chain and logistics-focused fintechs attracted $8.2 billion in investment in the first half of the year - even significantly more than the previous full-year record in 2019 ($5.5 billion). Green" fintechs also attracted a lot of interest: they were able to raise 1.7 billion dollars, which is already more than in the whole of 2022 (1.5 billion dollars).

Several billion-dollar deals

The US accounted for the lion's share of fintech investment in the first half of the year at $34.9bn; as did five of the seven first-half fintech deals worth more than $1bn. These include Thomas Bravo's $8bn acquisition of Coupa, Stripe's $6.9bn VC raise and Global Payments' $4bn acquisition of EVO Payments. The EMEA and ASPAC regions each saw a billion-dollar deal in the first six months: UK-based Wood Mackenzie was acquired by Veritas Capital for $3.1 billion, while China's Chongqing Ant Consumer Finance closed a $1.5 billion VC funding round.

Cautious outlook - AI with potential

With no end to geopolitical and macroeconomic uncertainties in sight, investment in fintech companies is likely to remain relatively weak in the second half of the year, KPMG estimates.

Press contact

Thomas Blees

Deputy Head Corporate Communications
KPMG AG Wirtschaftsprüfungsgesellschaft

T +49 30 2068 1408