September 08, 2022
Good morning, fintech readers. Welcome to Thursday.
Situational awareness: Coinbase is bankrolling a lawsuit against the Treasury Department after the government agency sanctioned Tornado Cash.
👀 Catch up quick: Check out our new events page, where you can watch past Axios Pro interviews, including our July 21 chat with SBF.
1 big thing: Trending down for 7 months
Fintech investors slowed their pace of funding for the seventh month in a row in August, according to data from investment bank FT Partners.
Why it matters: The slowdown affects all aspects of growth across the space, including startups and public players, and raises the question of when, and at what level, will the bottom of the investing drop arrive.
Details: Fintech funding is down 49%, to $74.2 billion, so far this year through August, compared to the year-ago period, FT Partners says.
- Funding in August hit its lowest monthly level since November 2020, with $3.6 billion announced across 258 financing deals.
Bottom line: As equity funding dries up, expect to see more venture debt rounds, creative term sheets, and cheap(er) M&A.