The newest Pulse of Fintech report by KPMG and CB Insights shows that investment in VC-backed fintech companies and startups fell nearly 50% across the globe, with U.S. investment specifically down 26% from same quarter results last year.
The number of deals is also down for the quarter, with mega-round activity at a five-quarter low. This quarter, the US completed only 97 fintech funding deals, compared with the 130 deals completed in Q1’16.
The report cites multiple reasons for investor hesitation in the quarter, among them the initial results and speculation regarding Brexit, the atmosphere surrounding the upcoming U.S. presidential election, and the “ongoing concerns about valuations and significant headwinds in the marketplace lending space.”
