📊 Global fintech funding dropped 46% YoY in 2022

According to a new report from Crunchbase, global fintech funding reached $75.2 billion in 2022, indicating a 46% decrease from 2021, and a 52% decline when compared to 2020.

The data shows that the funding slowdown was particularly severe in the second half of the year, with Q4’22 funding clocking in at $10.7 billion, the lowest quarterly level since 2018.

The report also revealed that deals in the fintech sector fell 8% year-over-year, totaling 5,048 in 2022. The only region to see an increase in deals compared to 2021 was in Africa, according to a Techloy analysis.

The data suggests that while fintech funding remains robust, the market may be experiencing a slowdown in growth. It is worth noting that Africa showed a positive trend which could be an indication of new opportunities in the fintech scene on the continent.

Other 2022 highlights across fintech include:

• $100M+ mega-rounds accounted for $36.5B in funding in 2022, marking a 60% drop from 2021.
• Banking funding declined 63% YoY — the sharpest drop across fintech sectors analyzed — to return to pre-Covid levels.
• US fintech funding fell 50% YoY to $32.8B. Despite the drop, 2022 was the second-highest funding year for US fintechs on record.
• Africa-based fintechs saw a record 227 deals in 2022, a 25% increase YoY.
• Insurtech M&A exits reached a new high, rising 40% in 2022 to 81 deals.
• Fintech unicorn births steadily declined throughout 2022, sinking to a low of 5 new unicorns in Q4’22 — an 87% drop compared to Q4’21.