We’re seeing a slowdown investment in Q3 for fintech startups, according to a CBInsights Pulse report. Venture capital investment in fintech companies dropped 52% year over year to $2.4 billion globally.
Why? CBInsights says investment has slowed largely because there haven’t been any inspiring billion-dollar plus exits or financial rounds in the fintech category to spur investment. In the U.S. and the U.K. there have been far less $50 million-plus rounds than last year. Overall, both regions did fewer fintech deals this quarter, potentially as a result of market uncertainty thanks to Brexit and the U.S. election cycle. Germany, on the other hand, is expected to outpace the U.K. for investment in this category. Asia too increased investment in fintech from $800 million last quarter to $1.2 billion this quarter.