[eMarketer] Fintech funding to hit record highs in 2022
CB Insights’ 2021 State of Venture Report confirms fintech funding smashed several records last year, with $132 billion raised. Fintechs captured $1 in every $5 from venture capital firms.
Volume, exits, and early-stage deals all ticked up last year.
Fintech funding surged by 169% from 2020 to $131.5 billion in 2021— the most funding on record.
Q4 funding was the second-largest quarterly haul in history, at $34.9 billion, which included crypto tech firm NYDIG’s last-minute $1 billion raise.
There were also a record number of M&A, IPO, and SPAC exits—M&A and IPOs peaked in Q4.
eMarketer predicts fintech funding will surpass 2021 levels and exceed the $150 billion mark as several areas, like blockchain and B2B tech firms, attract a wide pool of investors.
New tech applications like open finance and blockchain will grab a wider pool of global investors, including hedge funds.
Crypto exchanges will also keep raising an abundance of capital. Despite recent volatility, leading financial institutions like Goldman Sachs are still bullish about crypto prices.
And large firms are still digitizing—S&P 500 companies will increase their capital expenditures and research and development investment by 18% this year from 2019 levels, per Goldman Sachs.
But a staggering 94% of financial services firms said they’re struggling with the frenetic pace of digital transformation of the past two years, per a survey from ITRS Group.