Funding deployment in U.K.-based fintech in 2022 totaled $17B, down 60% from $22B in 2021, per KPMG's Pulse of Fintech report.
The report cites rising inflation, high-interest rates, geopolitical
challenges, a slump in the crypto market, and valuation cuts as
contributing factors to the dampened funding of VC and PE deployment and
M&A transactions.
- In 2022, 593 deals were completed in the sector, down from 724 in 2021.
- Within the fintech sector, payment focussed firms secured $3.6B of the investment in 2022.
- Despite the dip, U.K. fintechs were able to nab more funding than their EMEA counterparts.
- Investors
expect funding to remain constrained this year as a result of issues
such as the elimination of R&D tax breaks, a scarcity of visas for
foreign personnel, and cuts to funding provided to industry bodies such
as Tech Nation.
- Global startups nabbed $164.1B in investments in 2022, down from $238.9B the previous year.
