The amount of money flowing into Canadian financial technology (fintech) companies declined
by more than 50% in this year’s first half, according to a new report by accounting firm KPMG.
Fintech companies based in Canada attracted $810 million U.S. in investments through 85
deals in the first half of the year, down from $1.9 billion U.S. in the second half of 2021.
“We expect fintech to continue to draw interest in the second half of the year, but investors will
be more selective about where they deploy capital,” said KPMG in its report.
KPMG added that the decline in this year’s first six months was sizable compared to the same
period of 2021 when Canadian fintech firms drew $5.4 billion U.S. in investment across 108
deals.
However, KPMG noted that the first half of 2021 was one of the strongest periods on record for
fintech investments.
KPMG said most of Canada's fintech investment in the first half of this year came from venture
capital, with 25 seed round investments, 23 early-stage investments, and 17 late-stage funding
rounds completed.
The fall in fintech investments throughout Canada comes amid a broad-based decline in the
sector that has led many start-up companies and established technology firms to layoff workers
and cutback spending.
