Stripe funding round helps boost global fintech funding 55% in Q1 2023
Global fintech funding increased 55% quarter-over-quarter (Q/Q) in Q1 2023, according to market intelligence platform CB Insights.
Behind the headline figure, however, the data is not so rosy. The 55% was substantially boosted by Stripe’s colossal $6.5 billion round, more than 40% of the total amount. The fintech darling saw its valuation drop from $95 billion to $50 billion.
Taking Stripe out of the equation, funding actually fell 12% over the same period, coming in at $8.5 billion.
Additionally, deal count also dropped while the number of new unicorns fell to one for the first time since 2016, an 86% drop Q/Q. Banking funding and deals also hit their lowest level since Q2 2017.
While deal count fell by 2% Q/Q to 983 deals, it fared “relatively well”, the report suggests, compared to the broader venture ecosystem, where deal count fell 12% Q/Q.
However, data shows that early-stage deal share reached 72%, a new high, with 72% of deals falling under this banner.
That solo unicorn was Egyptian fintech MNT-Halan, which in February landed a $400 million investment. The dearth of unicorns suggests valuations are being corrected across the board, CB Insights suggests. Over Q1 2022 to Q1 2023 unicorn births plummeted by 97%.
Currently, the number of unicorns stands at 314, up 11% YoY, with the majority located in the US and UK.