FinTech Funding Declines After Two Weeks of High Investment #

After two consecutive weeks of robust FinTech funding, the total amount raised in this week’s deals has experienced a noticeable decline. 30 FinTech deals were completed this week, raising a total of $479.4m. This marks a significant fall compared to the previous week when 25 deals garnered $1.1bn and two weeks ago when $7.2bn was raised.

The majority of funding came from the ten largest deals, which collectively pulled in $333m. Germany’s Raisin, a savings and investment platform, led the way in its €60m Series E funding round. The top ten deals included five from the United States, two from Germany, and one each from Singapore, the Bahamas, and Thailand.

PayTech, marketplace lending, RegTech, infrastructure and enterprise software, and WealthTech accounted for most deals, with six, five, four, four, and four deals respectively. CyberTech and cryptocurrency companies secured three deals each, while InsurTech had two.

PayTech was the most active sector in seed stage FinTech deals in Europe last year, representing 14.8% of all deals. Only WealthTech and cryptocurrency had more activity. Last year, the United Kingdom was home to most deal activity, with 27 out of 92 deals completed. The average European PayTech seed deal raised $6.5m in 2022.

Germany experienced a significant decline in total funding last year compared to 2021, going from $6.4bn to $3.4bn. However, the total investment volume for 2022 remained 70% higher than in 2020. Across all 30 deals this week, the United States had the most representation with 15 deals, followed by Singapore and the United Kingdom with three each, and several other countries represented.