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

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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).

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Phil Siarri

Phil Siarri

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Founder of Nuadox | Tech & Innovation Commentator | Digital Strategist | MTL | More about me> linktr.ee/philsiarri