Return of VC funding to fintech startups that have sprung up in the Corona era


Mumbai: Venture capital (VC) funding in fintech appears to have burst as a result of the decline in global fintech funding from its 2021 highs. According to a report by S&P Global Market Intelligence, funding in fintech fell by 33 percent to $63 billion in 2022. The picture for the first 6 months of 2023 is even worse, with fintech VC funding remaining at $23 billion.

These figures reflect the state of funding in fintech startups. Financial technology was considered the cause of the VC bubble of 2021.

Fintech companies and VC funds to fund them exploded during the Corona period. But these bubbles seem to have burst now, the report noted.

However, there are still many fintech companies that can survive despite the lack of funds. A recent article by S&P Global Market Intelligence stated that integrated payment systems, cross-border payments and networks that provide connectivity to numerous banking services remain attractive fintech models today.

Digital payment technology continues to be popular among users today, so VC investment in it is expected to continue. However, this investment will not be on a generous scale.


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