Global Fintech VC Trends 2022

The global fintech VC industry is going through tough times, with fintech funding falling to its lowest level since 2020, according to global stats.

Analyzing global resources for venture capital in fintech in Q1-Q2 2022 (Dealroom, CBInsights, Emarketer, and others), we’ve noticed the trends:

🟣Investments in fintech projects slowed down.

 In Q1 2022, the global fintech industry raised $32.4 billion, and it was projected to reach $179 billion by the end of 2022.

However, we see that the forecasts are failing to succeed. In Q1-Q2 2022, the fintech industry received $57.7 billion of investments because of the investors cutting back on investment.

In Q2 2022, global fintech VC decreased by 27% compared to Q1 2022.

🟣 Globally, fintech funding increased slightly in June compared to the previous months, but dollar-wise, not transaction volume-wise: $1.5 billion was committed from June 16-23.

🟣 Late-stage companies were the hardest, with Series D funding falling down by 43% in Q2 2022.

🟣In Q1 2022, most of the venture capital (over $9 billion) was invested in crypto projects. 

🟣At the moment, the number of fintech unicorns is bigger than ever, with 315 unicorns operating worldwide. In Q1 2022, 35 fintech startups were launched, and in Q2 2022, 34 fintech unicorns entered the global ecosystem.

🟣Apart from DeFi, the most trending fintech sectors in Q1-Q2 2022 were parametric insurance, green finance, BaaS, and embedded finance.

✔Parametric insurance is non-traditional insurance that provides pre-specified payouts for specific events based on their magnitude. These could be environmental triggers, such as an earthquake or a flood, business triggers, and others.

✔Green finance is any financial activity designed to ensure a better environmental impact. This includes a wide range of financial solutions and services, such as green bonds, green-tagged loans, crypto Carbon footprint offsetting, green investment funds, climate risk insurance, and more.

✔Banking as a service (BaaS) is a model through which banks open up their systems to allow third parties to access their data and enrich their products with more services.

✔Embedded finance stands for banking-like services offered by non-banks that aim to retain customers and boost their customer experience. Embedded financial solutions include the creation of bank accounts or wallets, integration of different payment systems within an existing solution, etc.

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