Americas

Total fintech funding in the Americas rose from $28.9 billion in H2’22 to $36 billion in H1’23, although it remained relatively weak compared to the level of funding seen between H2’20 and H1’22. While the region attracted a number of sizeable transactions — all in the US — total deal volume dropped significantly; deal volume in Q2’23 was particularly weak, falling to a twelve-quarter low. Given the amount of funding still available in the market, the decline in deals volume likely reflects a number of factors, including investors being much more selective about the deals they go after and valuation differences between what sellers want and what buyers are willing to pay. Key H1’23 highlights from the Americas include: 

US attracts majority of fintech funding in Americas

The US accounted for the vast bulk of fintech funding in the region, including six deals over $1 billion: Coupa ($8 billion), Stripe ($6.8 billion), EVO Payments ($4 billion), Duck Creek Technologies ($2.6 billion), Moneygram ($1.8 billion), and Paya ($1.3 billion). Outside of the US, only two countries attracted $100 million+ funding rounds: Mexico, which saw a $175 million raise by SMB-focused fintech Kapital, and Canada, which saw a $125 million raise by bitcoin infrastructure company Blockstream. 

Crypto funding in the US on pause; blockchain interest persists

Following on the collapse of a number of crypto companies in 2022 and the increasing focus of the SEC on crypto companies, many traditional investors in the US pulled back from the space during H1’23. While there were a handful of larger crypto deals in H1’23, including the $155 million acquisition of Apex Crypto in the US and the $125 million raise by Canada-based Blockstream, funding was incredibly low relative to the last few years. Non-crypto focused blockchain-based technologies continued to attract interest, as evidenced by the $320 million acquisition of remittance-focused technology company GammaRey by fintech data analytics company GoLogiq.

• Growing focus on AI and generative AI use cases in the areas of financial planning and wealth management.
• Increase funding as the financial markets normalize and there is more certainty that inflation is going down and that interest rates are stabilizing.
• Growing diversity of geographic locations within the Americas — and domestically within the US — attracting fintech funding.
• Continued focus on B2B fintech solutions, particularly those focused on helping financial services companies improve efficiencies.
• Accelerating payments deal volumes across the Americas as the market turns more positive, with increasing interest from PE firms.