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Fintech funding shrinks as proportion of VC market

Oct 24, 2022
Global fintech and total VC funding
Data: CB Insights; Chart: Axios Visuals

Venture capital funding to fintech companies keeps falling, data from CB Insights shows.

Why it matters: The continued drying up of funding dollars paints a grim picture for startups operating amid economic headwinds.

By the numbers: Investment dollars into fintech companies was a meager $12.9 billion in Q3, the data show, compared to $36.1 billion in the year ago period.

  • Fintech investments made up 22% of the venture market in the third quarter of 2021. That figure slid to 17% for the same period this year.

Background: Q3 2021 was the second hottest quarter for fintech fundraising on record, with mega-rounds from FTX, Revolut, Chime, Kavak, and Varo Bank.

  • Now many fintechs, especially consumer-facing ones, are encountering lower investor interest amid rising inflation and following heavy spending to meet Covid demand.

The big picture: Venture capital investments across the board are coming back down to pre-pandemic levels of "normal." Whether it has further to slide is the big question.

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