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Fintech Q1 recap

Fintech funding is holding on better than the broader venture capital ecosystem, especially compared to last year's numbers.

Fintech startups raised $32.4B globally in Q1 2022, down 10% from the all-time high in Q3 last year, but still up 27% year on year. Fintech funding is also up 27% year-on-year, compared to just 4% for overall VC funding. While Early-stage funding is even stronger, reaching an all-time-high $6.1B in Q1.

Europe fintech funding is thriving, Q1 was the best quarter ever, up 9% from Q2 2021. While US funding slowed by 13% from its all-time-high.

There are now 473 fintech unicorns globally. 40 were added in Q1 2022, 8 less than the quarterly average last year, but still a very high pace.

Exits value has fallen from last year, from more than $100B by quarter to $27B, especially due to public listings, but smaller mergers and acquisitions are at an all-time high with more than 230 exits in Q1.

Crypto is now the most invested sector in fintech. Crypto startups raised $7.0B in Q1 2022, more than any other fintech segment. Crypto and Defi funding is also growing faster than any other segment, increasing 2.4x compared to Q1 2021.

Do you want to explore how BaaS and embedded finance, crypto custody, green finance, alternative investments, and other fintech markets performed in Q1 2022?

Stay up to date on the latest fintech numbers and dive into our full report by clicking the button below. 👇 

In other news

👀 A crypto VC research lab. Andreessen Horowitz (a16z), one of the world's leading crypto VCs, has announced the creation of a crypto research lab, bringing to crypto the playbook of AI research labs like DeepMind and OpenAI. - a16z

💣 Coinbase NFT marketplace. The marketplace, now accessible in Beta, looks like a mix between Instagram and Opensea. - Coindesk

Coinbase is in fact challenging established players in the sectors (such as Opensea) by adding social features, like a comment system (with upvotes and downvotes) and an algorithmic feed.

🔎 Unpacking corporate expense management. Expense management software is booming in Europe. This piece explains what expense management is, different methods to manage expenses, the customer journey, the features offered and the players operating in Europe. - Martijn Mulders

 
🇩🇪 Germany is the most crypto friendly in 2022. Germany knocks Singapore off the top spot in the new Coincub crypto-friendly ranking guide for Q1 2022. Germany’s acceptance of cryptocurrency and groundbreaking decision to allow crypto investments to form part of its huge domestic savings industry gets it to the top spot along with other key data. - Coincub

Latest fintech deals

The largest this week:

🇩🇪 Taxfix, the Berlin-based mobile tax filing app, raises $220M at a $1B+ valuation. The startup has now 1M+ downloads across its 3 markets Germany, Spain and Italy and is looking to expand in new markets. It is also looking to expand its product lifecycle by adding for instance tools for expense management.

🇬🇧 Starling Bank raised £130.5m from existing investors to build a "war chest" for acquisitions. The round gives Starling a pre-money valuation of more than £2.5bn. In July Starling Bank acquired Fleet Mortgages for $50M.

🇬🇧 Online fraud detection startup SEON raised an €87.1M Series B to help businesses keep customers safe.

🇺🇸 Flipside Crypto, which gives blockchain analytics and enterprise intelligence to crypto corporations, has raised $50M at a $350M valuation.

Other notable fintech deals from around the globe:

🇫🇷 Sustainable neobank Helios raise €9M  for its fintech-for-good offerings focused on new sustainable and ecological banking solutions and environmental investments.

🇩🇪 B2B buy now, pay later provider Mondu raised a €40M round from Valar Ventures.

🇬🇧 Volume, a new checkout startup has now closed a pre-seed round of $2.4M led by firstminute Capital, joined by SeedX and Haatch Ventures. Volume is taking advantage of open banking to enable a new, improved e-commerce payment experience.

🇦🇺 Reach Alternative Investments raised a $2.2M Seed round to open access to quality private market investments and institutional-grade funds for sophisticated investors.

Read up on all the latest fintech deals in Dealroom.co

Notable acquisitions:

🇳🇱 Netherlands-based PayU announced two big deals last week to expand its Latin American presence. It's acquiring Colombian payments platform Ding and leading a $46M investment into Colombian financial “superapp” Trienta.

An overview of startups fighting financial crime with anti-money laundering solutions.

Tip of the week

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You can zoom in on a single box in a landscape by clicking on it, you can then see stats for that segment such as funding.

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Lorenzo Chiavarini

Innovation Analyst
Dealroom

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