Fintech Q3 2022 report: light at the end of the tunnel
Fintech hasn’t been able to shake-off the market downturn.
Funding has decreased greatly, especially at the late stage; exits value and count have fallen. Unicorns are once again a rare thing.
We’re putting together a full analysis covering how the sector is adapting to the market slowing down in our Fintech Q3 2022 Report, but for the time being, we’ve gathered some key insights covering Fintech’s Q3 performance. 👇
Fintech startups raised $13.4B globally in Q3 2022. This is down 64% from the all-time-high in Q4 2021, and 40% less than Q2. Fintech funding is now back to the pre-pandemic levels.
Fintech is not anymore the top industry for VC funding globally. Health has the crown back, for the first time since the beginning of 2021.
Fintech is among the worst performing industries, down 62%, 1.4x more than the average for VC funding and significantly more than Health, down 35%.
Much of this is due to Megarounds. Global VC funding for rounds >$100M dropped dramatically, with just $5B invested, down 79% YoY.
Unicorns are rare again, with just 8 new fintech unicorns in Q3 2022, compared to 53 in the same period last year.
All fintech segments are down from last quarter, except for Insurtech which has been holding on to Q2 levels. This is mostly due to Wefox and Pie insurance megarounds, which have been among the biggest rounds this quarter. For more on insurtech check out our State of Insurtech 2022.
Payments are still the top sector for fintech VC funding.
Discover more on trends in funding, exits and fintech sectors in the complete Fintech Q3 2022 Report coming next week.