Fintech companies raised US$920 million across 109 deals in 2023, down from nearly US$1.3 billion over 208 deals the year before, according to KPMG’s analysis of PitchBook data. (The Logic)

Talking point: It was the second year in a row that fintech investments dropped, after the sector raised a record US$7.15 billion in 2021. Still, the decline in Canada was more muted than in the global sector, in which the number of deals fell by 65 per cent in 2023 and total value of investments dropped by 73 per cent. KPMG partner Georges Pigeon expects 2024 to be another tough fundraising year, particularly for early-stage fintech startups. “Fintechs that can demonstrate they are sustainable and valuable businesses will have an edge over those that emphasize themselves as quick technology solutions providers,” Pigeon said in a release. However, interest rate cuts and progress on the federal government’s long-awaited open banking legislation could reignite investor confidence, he said.