Canadian fintech investments dropped last year amid downward pressure on valuations: Report
BNN Bloomberg
Investments in Canadian fintech companies dropped last year, amid downward pressure on company valuations, according to a report by KPMG.
The report complied by PitchBook for KPMG’s Canadian division, found there were a total of 169 investments, worth US$1.3 billion in the fintech sector last year. This was down from a record 217 deals, worth US$7 billion, in 2021.
It also found that seed round and early-stage investments accounted for more than half of funding activity in 2022.
"It's not surprising to see a decline given the market rout, and the fact that fintech investments hit such feverish heights in 2021. But to put things into perspective: last year's activity was still stronger than 2020, and we also saw the second highest number of deals ever, so clearly investors were still finding many attractively priced opportunities," Geoff Rush, financial services industry leader at KPMG in Canada, said in the press release.
