Global fintech startups secured $14.9B in VC funding in Q1 2023, up 52% QoQ from Q4 2022's tally of $9.8B.
The funding surge was largely due to Stripe's $6.5B funding round, which closed in mid-March. Despite the increase, the sector is expected to face a funding shortfall that could last for the next four to eight quarters, per Crunchbase.
In Q4 2022, quarterly funding fell below the $10B mark for the first time since Q1 2019.
- Before the VC funding pullback that started in 2022, fintech was one of the highly funded sectors raking in nearly 20% of the $681B deployed in global startups in 2021.
- Several seed to Series C startups that raised funding in 2021 and 2022 will be looking to raise funding over the next few months, which may be tough considering the difficult fundraising environment for fintech startups.
- Bessemer Venture Partners advises such startups to raise capital before the company needs it rather than waiting for the "perfect" time.
