Global fintech funding saw dip in 2022, says Innovate Finance report
A new report from UK fintech body Innovate Finance reveals that global fintech funding reached $92 billion in 2022, a decrease of 30% compared to the $130 billion seen in 2021.
Innovate Finance reveals new data for fintech funding in 2022
The year 2022 saw 5,263 deals compared to 6,146 deals in 2021. The US saw the highest number of fintech funding in 2022 with more than $39 billion being invested, followed by the UK with $12.5 billion and India securing third place with $5.5 billion.
The UK fintech sector saw an 8% drop from 2021, with the $12.5 billion spread across 546 deals in 2022, as opposed to $13.5 billion across 583 deals in 2021.
“This is notably a much smaller decrease than the global average, with many other countries, including the US, suffering a double digit decrease in investment,” Innovate Finance says.
An exception to the global slowdown was Singapore, which, according to Innovate Finance, saw a 41% increase in investment from 2021, jumping from the 7th to the 4th position.
The report adds that China and Brazil witnessed “notable drops” in investment in 2022, with a 65% and 57% decrease respectively from 2021.
The biggest funding of 2022 was FNZ’s $1.4 billion deal, followed by Trade Republic, Checkout.com, Klarna and Ramp.
“Our latest report shows that the UK is still receiving more investment in fintech than all of the next 10 European countries combined, and remains second in the world only to the US.,” says Janine Hirt, CEO of Innovate Finance.
UK’s digital economy minister, Paul Scully, says: “In 2023 we are focusing on maintaining that lead by supporting start-ups, boosting digital skills and making this country an even more attractive destination to found, grow and invest in tech businesses.”
