Tech sector’s broad decline gives investors pause, but M&A and PE activity expected to continue in H2’22, according to KPMG
TORONTO, Sept. 8, 2022 /CNW/ – After a record-breaking year in 2021, investment in Canadian fintech dropped by more than 50 per cent in the first six months of 2022, mirroring a broader decline in the technology sector, according to KPMG’s Pulse of Fintech H1’22 Global report.
Canadian fintech companies saw US$810 million in total investment across 85 deals in the first half of 2022, down from US$1.9 billion in the second half of 2021. It was also a notable drop compared to the first half of 2021, which saw US$5.4 billion in investment across 108 deals. However, the first half of 2021 was an outlier, with one of the strongest quarters on record.
“The market downturn and ensuing lower tech valuations caused investors to hit the ‘pause button’ over the last few months, but with so much investment flowing into fintech last year, we see it …