Venture capital funding of U.S. FinTechs almost doubled in both transaction value and volume, according to an analysis released Thursday (Feb. 10) by S&P Global Market Intelligence.
The company says the jump in transaction value was especially surprising but cautions that 2022 could be a different story.
“U.S. FinTech funding had a banner year in 2021, but it will be a tough act to follow,” the report says. “Sagging valuations in the public equity market and potential interest rate hikes do not bode well for future investing activity.
“Private capital remained plentiful in January 2022, based on the aggregate total for all U.S. industries, but we will be watching for signs of a slowdown. The aggregate value of venture capital funding to U.S. financial technology companies soared in 2021, led by startups focused on investment and capital markets technology,” according to the report.
Among the key findings in the S&P Global Market Intelligence report:
Meanwhile, a biannual report from KPMG shows that British FinTechs were backed with $37.3 billion in funding in 2021, up 617% over 2020.