In 2023, Canadian fintech firms witnessed a notable slowdown in investments, as reported by KPMG in its latest global Pulse of Fintech. Investments plummeted to US$920 million across 109 deals, a sharp decline from US$1.29 billion in 2022.
Despite a global dip in fintech deals and values, Canada’s situation remains comparatively stable. However, this marks the second consecutive year of investment reduction since a peak in 2021.
Georges Pigeon, from KPMG Canada, predicts a critical 2024 for fintechs, as they navigate financing challenges and seek to establish themselves as sustainable businesses. Open banking legislation could potentially boost investor confidence. KPMG also notes that, despite global factors like economic slowdown and geopolitical tensions affecting investments, there’s potential growth, particularly in blockchain and web3 sectors.
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