US Fintech funding increased by 42% during the first half of 2023 when compared to the last half of 2022, according to a report. Fintech funding hit $12.8 billion from January to February 2023 but still down by 33% when compared to the same period in 2022, says Tracxn.
Of note is that the report states that the US market was home to 58% of Fintech funding globally in H1 2023.
San Francisco, New York and Los Angeles are the main centers of activity. Fintech startups in San Francisco attracted investments worth $8.1 billion, followed by New York at $1.4 billion and Los Angeles at $296 million. Payments, Crypto, and investment tech were the hot sectors.
Later-stage firms captured 44% of the funding, with both seed and early stage funding dropping by 59% and 57%, respectively – when compared to H1 2022.
Venture markets continue to operate in a subdued manner due to the challenging economy and high interest rates. Some observers expect the funds parked on the sidelines today will come roearing back once the US Federal Reserve indicates its rate hikes are over.
