New report suggests investment in Canadian fintech plummeted in first half of 2022

According to KPMG’s Pulse of Fintech H1'22, investments in fintech companies dropped by more than 50 per cent…

Image by Colin Behrens from Pixabay

On September 8, KPMG released its Pulse of Fintech H1'22 Global report. Let’s just say the data for Canada isn’t too rosy.

Here are a few highlights:

• Investment in the Canadian fintech space totaled US$810million (US$426.6 million in Q1 and US$382.4 million in Q2), down from US$1.9 billion in the second half of 2021).
• There were 85 fintech deals in total (including venture capital, M&A and private equity).
• 69 VC deals (amounting US$776.12 million).
• 29 deals in the crypto space, eight deals in payments, eight in RegTech, five in PropTech.
• 25 deals were seed round investments, 23 were early-stage and 17 were later-stage funding rounds.
• No IPOs.

Of course, such challenges are not unique to Canada. The COVID-19 pandemic has given a boost to many companies in the global ecosystem and a correction was perhaps inevitable.

Could we experience a rebound in the second half of the year? Maybe… yet a tough macroeconomic and regulatory environment (possible recession, crypto regulation initiatives…) could make things complicated.

This story was first published on The PhilaVerse (my Substack newsletter).