Global FinTech deal activity volume falls 73% YoY in Q3
SAN FRANCISCO, 13 October 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, which provides the most comprehensive review of global FinTech deal activity with analysis across private company financings, IPOs and M&A transactions.
FT Partners Q3 2022 FinTech Insights Report Global FinTech deal activity falls 73% year-on-year in Q3 Financial Technology
FinTech deal activity slowed in Q3 2022 to the lowest volume in two years amid persistently high inflation, rising interest rates, fears of a pending recession and overall continued global economic uncertainty. Specifically, the total dollar volume of global FinTech deal activity across private equity financings, IPOs, and M&A in Q3 2022 fell 73% from the prior-year activity peak in Q3 2021.
The total financing volume for private companies increased in Q3 2022 13.3 billion dollarswhich represents the lowest quarterly volume since Q4 2020 (11.7 billion dollars) and a drop of 50% from Q2 2022 (26.6 billion dollars). With the IPO market essentially closed and several cancellations of pending SPAC mergers, some companies have subsequently chosen to raise private financing rounds, resulting in a small increase in volume. We’ve previously noted the lag in the quarterly data, where many deals announced during a quarter may actually be agreed a few months earlier. We have most likely seen this play out in the 3rd quarter given the sharply lower financing volumes, and we may continue to see a reduced level of activity in the coming months.
The lower total dollar volume in the quarter can be attributed to fewer large financing rounds. Only 23 $100 million+ rounds were announced in Q3 2022 compared to 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 2020 .
FinTech M&A activity in Q3 roughly matched Q2 activity levels with 319 deals and 37 billion dollars in announced volume. Both quarters experienced a slight decrease in the number of deals (2021 averaged 372 per quarter) and represent the two lowest volumes since Q2 2020 (8.3 billion dollars), the beginning of the COVID-19 pandemic when many deals were delayed.
The full report contains more in-depth FinTech deal activity statistics including the most active FinTech investors, and breakdowns by geography, sector and deal type. The report can be viewed and downloaded free of charge on our website.
FT Partners’ data, analysis and insights on FinTech are derived from our deep domain knowledge and the firm’s proprietary database, which is meticulously and methodically compiled. The FT Partners Research Team collects and curates this information through primary research, and it represents years of focus and diligence. It should be noted that our database is constantly being updated and refined, and previous 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-level strategic and financial advisory services to FinTech CEOs, founders and investors. The firm offers CEOs and investors a broad range of strategic advisory services in mission-critical transactions, including private equity, M&A, IPO advisory, debt advisory, LBOs and recapitalizations.
With offices in San Francisco, New York and LondonFT Partners consists of a team of experienced investment bankers previously with financial technology, M&A and the investment banking groups Goldman Sachs, Citi, JP Morgan and Morgan Stanley.
FT Partners regularly publishes detailed research reports, transaction profiles and CEO interviews that highlight key trends driving market activity across the FinTech landscape. Follow us on Twitterconnect on LinkedIn and visit our research page for more real-time updates.
Visit www.ftpartners.com for more information.
View original content to download multimedia: https://www.prnewswire.com/news-releases/global-fintech-deal-activity-volume-drops-73-yoy-in-q3—ft-partners-publishes -q3 -2022-fintech-insights-report-301648635.html
SOURCE Financial Technology Partners LP and FTP Securities LLC
