PRIVATE EQUITY AND INVESTMENT
INVESTING IN FINTEC
ASSESSING THE LANDSC
With investment in fintech having declined in 2023 , we look at the investment landscape for 2024 and consider what startups can do to get noticed
WRITTEN BY : LOUIS THOMPSETT
Last year saw investment in fintech continue its downward slump following the post-COVID-19 pandemic boom of 2021-2022 . Per KPMG ’ s insights , fintech investment dropped a marked 57 % year-on-year in H1 2023 and , despite a slight uptick in capital investment in the second half of 2023 , funding is still far from its highest levels .
Although the post-pandemic boom marked unprecedented levels of investment – a result of locked-away capital suddenly being released to kick-start a sector ( and wider economy ) in desperate need of a restart – venture capital in 2023 was perhaps still short of the figures the industry needed to continue adequately investing in new startups .
And , the macroeconomic conditions that have led to the massive slowdown in 2023 “ still exist today ”, says Daniel Cohen , CEO at PayU GPO . “ Soaring interest rates , political tensions and the fear of recession that has yet to pass will all impact investment decisions ,” he adds .
110 March 2024