The fintech funding slowdown speeds up
Global dollars to fintech companies slipped 33% in the second quarter, continuing a slowdown that started this year, data from CBInsights shows.
Why it matters: This is the most dramatic quarterly decrease in venture funding to fintech startups in recent years, signaling that investors are pulling back from the space at a faster pace than before.
For context, VC dollars to fintech companies dropped 20% in the first quarter of 2022, compared with the quarter prior.
In other words: Don't be surprised if the slowdown gets even worse in the third quarter.
- Don't forget that many investors are taking their first real summer vacation in years and and others taking time to digest the state of the market.
- And don't despair. Fintech is far from dead — second-quarter funding levels are still miles above 2020 figures. Not to mention fintech funds are still raising aggressively in the hopes of finding bargains, suggesting valuation cuts may get more aggressive than funding cuts.