European fintech funding soared by 39pc in first quarter
European fintech firms attracted $7.9bn (£6.05bn) in funding during the first three months of 2022, representing a 39 per cent quarter-on-quarter increase.
However, according to the latest data from CBInsights, overall fintech funding fell in the first quarter of the year.
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Globally, fintechs raised $28.8bn in the first quarter of 2022, a quarter-on-quarter drop of 18 per cent.
This represented the largest percentage drop in quarterly funding since 2018. However, it was still the fourth-strongest quarter for funding on record.
Europe and Canada bucked the trend by reporting an increase in fintech funding in the first quarter. Canada saw the biggest quarter-on-quarter increase with $615m raised via a record 39 deals – an 80 per cent increase on the previous quarter.
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In Asia, funding fell by 44 per cent to $4.8bn, despite a record 388 deals.
The US recorded 489 deals in the first three months of the year, but funding dropped by 27 per cent to $13.3bn.
Funding also fell in Latin America and Africa, even though the number of deals rose.
CBInsights also reported that bank funding reached a four-quarter low, effectively halving between the second quarter of 2021 and the first quarter of 2022.
The report also noted that 34 new unicorns entered the market at the start of the year, with half coming from the US. Europe had 11 new fintech unicorns in the first quarter, bringing its total to 54.
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