The glory days of the fintech unicorn ended last year.
Why it matters: The drop in companies worth more than $1 billion illustrates the loss of confidence by investors across broad swaths of the fintech space.
Details: Only 69 fintechs earned unicorn status last year, a 58% drop from the prior year, according to CB Insights.
Yes, but: The 2022 total is still much higher than any year prior, except for the 2021 banner year.
Between the lines: The weak funding market last year handed the reins back to investors, empowering them to set terms that are more costly to the company. For example: higher liquidation preferences.
Of note: The funding slowdown worsened substantially during 2022, with a mere four unicorns birthed in Q4, per the data.
Zoom in: Notable new unicorns included Uniswap ($1.7 billion) and Bilt Rewards ($1.5 billion).
Bottom line: It's hard being a late-stage startup in this market.
