FT Partners Research recently announced the publication of their Q3 2022 Crypto & Capital Markets Tech Insights report, providing the review of global deal activity for the Crypto & Blockchain and Wealth & Capital Markets Tech sectors “with analysis across private company financings, IPOs, and M&A transactions.” FT Partners is the top boutique investment in the Fintech sector, having participated in most of the prominent investing rounds for the most prominent Fintechs and thus has keen insight into innovative financial services firms.
The Q3 report also features an interview with the CEO & Co-Founder of Zero Hash, Edward Woodford.
Highlights of the Report
Crypto & Blockchain:
- Crypto & Blockchain private company funding volume “fell 71% in Q3 2022 to $2.1 billion from the all-time high reached in Q1 2022 ($7.4 billion).”
- The number of financing deals in Q3 2022 (199) “declined 28% from the record level in Q2 2022 (275), but was still higher than the quarterly average in 2021 (151).”
- Heavy strategic participation in Crypto & Blockchain financing rounds “continued in Q3; a full 62% of all capital raises in the sector YTD have included at least one corporate investor.”
- M&A activity in the space continues “to fly mostly under the radar, with exceptions for prominent failed entities such as Voyager Digital – acquired by FTX for $51 million in cash – and new SPAC mergers.”
- Two more SPAC mergers were “announced in Q3 2022 for a total of six in 2022 YTD; Conversely, four previously announced SPAC mergers in the Crypto & Blockchain sector were canceled in Q3 2022.”
Wealth & Capital Markets Tech
- Wealth & Capital Markets Tech private company financing volume “dropped further in Q3 2022 to $1.7 billion, representing the lowest volume since Q4 2020.”
- While not as drastic of a decline, financing deal count for the sector “reached the peak of activity in Q1 2022 at 125 capital raises and proceeded to drop to 103 deals in Q2 and 97 deals in Q3 2022.”
- Lower funding volume can be in part attributed to fewer “super-sized” funding rounds of $100 million or more. There were only three rounds “of this size in Q3 2022 compared with an average of 10 per quarter in 2021.”
- Additionally, the percentage of smaller financing rounds (less than $10 million) “increased each quarter this year so far – 44% in Q1 2022 all the way to 66% in Q3 2022.”
- M&A activity “picked up slightly in Q3 over Q1 and Q2 of this year, but it did not reach the levels experienced in 2021.”
Selected Recent FT Partners-Advised Transactions
- Forge’s $2 billion Merger with Motive Capital Corp.
- CAIS’ $225 million Series C Financing at a $1 billion Valuation
- Trumid’s $200 million Financing
- AlphaSense’s $180 million Series C Financing
- Say Technologies’ $140 million Sale to Robinhood
- Abra’s $55 million Series C Financing
- Circle’s $25 million Financing
- Riskalyze’s Recapitalization by HG
- Imagine Software’s Sale to Francisco Partners
- Exegy’s Sale to Marlin Equity Partners
- InvestEdge’s Sale to Featheringill Capital
- Forge’s Acquisition of SharesPost
- Clearpool’s Sale to BMO
FT Partners‘ data, analytics, and insights on Fintech reportedly stem from their deep domain knowledge and the Firm’s proprietary database, which has been “methodically compiled.”
The FT Partners Research Team “assembles and curates this information through primary research and it represents years of focus and diligence.”
