Venture capital, private equity, and mergers and acquisitions in the country’s fintech sector dropped to US$1.3 billion after a banner year of deals worth US$7 billion in 2021, according to data compiled by PitchBook for KPMG. Valuations fell fivefold and the number of deals declined by 22 per cent. Still, the study found that 2022 was the second highest year for deal volume. (The Logic)

Talking point: While investments in Canadian fintech are expected to remain relatively restrained in 2023, KPMG projects Canada will see a slight increase toward the end of the year. “In 2021, many companies saw a huge influx of capital from VC investors, so some of those firms won’t need cash until sometime in 2023—maybe even 2024 —because they’ve streamlined and restructured their operations to make that cash last longer,” said Georges Pigeon, a partner in KPMG Canada’s deal advisory practice, in the release. Last year, investors were keen on Canadian crypto assets and blockchain companies, investing in 51 total, despite uncertainty stemming from the collapse of several players, including the U.S. crypto giant FTX. Globally, payments was the top fintech sector for investors.