Global Fintech Market Update | Q1 2023

Positive Developments in Public and Private FinTech Markets

Drake Star’s Global FinTech Market update was released today, breaking down both the industry headwinds, as well as several positive developments for FinTech public and private markets. Download the full report below for insights into M&A and fundraising activity, key industry trends and 2023 deal activity projections.

The report also deep dives into specific market sub-sectors including: Payments, Insurtech, Wealthech, Crypto, and others.

• FinTech deal activity continued to be negatively impacted by the overall bearish market sentiment. 

• However, FinTech M&A deal value increased for the second consecutive quarter reaching $20.0bn (from $12.9bn in Q4’22) and fundraising deal value grew for the first time since Q1’21 despite deal count continuing to decrease. 

• Aggregate M&A deal value in Q1’23 increased 55% from Q4’22, but the number of deals is still 45% below Q1’22 

• Aggregate deal value of private placements increased for the first time since 2021 by 53% from $11.6bn to $17.8bn from Q4’22 to Q1’23, driven by the $6.5bn funding round of @Stripe valuing the company at $50 billion

Said Julian Ostertag: “The current market environment is clearly challenging for FinTechs, especially B2C. But the future of FinTech is bright. It was still the second most invested industry in Q1. And research suggests that the market will grow from $245 billion to $1.5 trillion in just 7 years, which would be a 6x growth multiple. With valuations down and interest rates up, this is a great time to invest in FinTechs!”

Companies featured in the report include among others: Stripe; EVO Payments; Paya; Duck Creek; Abound; Klarna