Global FinTech Deal Activity Volume Drops 73% YoY in Q3 - FT Partners Publishes Q3 2022 FinTech Insights Report
SAN FRANCISCO, Oct. 13, 2022 /PRNewswire/ -- Financial Technology Partners ("FT Partners"), the only investment bank focused exclusively on FinTech, is pleased to announce the publication of its Q3 2022 FinTech Insights report, providing the most comprehensive review of global FinTech deal activity with analysis across private company financings, IPOs, and M&A transactions.
FinTech deal activity slowed in Q3 2022 to the lowest volume in the last two years amidst persistent high inflation, interest rate hikes, fears of a pending recession and overall continued global economic uncertainty. Specifically, total dollar volume of global FinTech deal activity across private company financings, IPOs, and M&A transactions in Q3 2022 declined 73% from the peak of activity a year prior in Q3 2021.
Private company financing volume raised in Q3 2022 totaled $13.3 billion, representing the lowest quarterly volume since Q4 2020 ($11.7 billion) and a drop of 50% from Q2 2022 ($26.6 billion). With the IPO market essentially shut and several cancellations of pending SPAC mergers, some companies have subsequently chosen to raise private funding rounds, giving a slight boost to volume. We previously noted the lag in the quarterly data, where many deals announced during a quarter may actually be agreed upon some months prior. We most likely witnessed this play out in Q3 given the sharply lower funding volumes and we may continue to see reduced activity levels in the coming months.
The lower total dollar volume in the quarter can be attributed to fewer large funding rounds. Only 23 $100 million+ rounds were announced in Q3 2022 compared with 73 in Q2 2022 and 114 back in Q3 2021. Additionally, only six new FinTech unicorns were born in Q3 2022 compared to more than 30 new unicorns minted in both Q1 and Q2 2022.
FinTech M&A activity in Q3 roughly matched Q2 activity levels with 319 deals and $37 billion in announced volume. Both quarters experienced a small decline in number of deals (2021 averaged 372 per quarter) and represent the two lowest volumes since Q2 2020 ($8.3 billion), the beginning of the COVID-19 pandemic when many deals were delayed.
The full report includes more in-depth FinTech deal activity statistics including most active FinTech investors, and breakdowns by geography, sectors, and deal types. The report can be viewed and downloaded for free on our website.
FT Partners' data, analytics, and insights on FinTech stem from our deep domain knowledge and the Firm's proprietary database, which has been meticulously and methodically compiled. The FT Partners Research Team assembles and curates this information through primary research and it represents years of focus and diligence. It should be noted that our database is continually being updated and refined and prior reports may not have the most up to date figures.
About FT Partners
Financial Technology Partners ("FT Partners") is the only investment banking firm focused exclusively on providing top-tier strategic and financial advisory services to FinTech CEOs, founders and investors. The Firm offers CEOs and investors a wide array of strategic advisory services in mission-critical transactions including Private Capital, M&A, IPO Advisory, Debt Advisory, LBOs and Recapitalizations.
With offices in San Francisco, New York and London, FT Partners is comprised of a team of experienced investment bankers formerly with the financial technology, M&A and investment banking groups of Goldman Sachs, Citi, JP Morgan and Morgan Stanley.
FT Partners regularly publishes detailed research reports, transaction profiles, and CEO interviews highlighting key trends driving market activity across the FinTech landscape. Follow us on Twitter, connect on LinkedIn, and visit our Research page for more real time updates.
Visit www.ftpartners.com for more information.
SOURCE Financial Technology Partners LP and FTP Securities LLC
Share this article