comedown from The 2021 venture capital boom has rocked much of the startup world, but a capital shortage is emerging sharply in one particular niche: fintech.
After peaking in 2021, CB Insights data shows funding for fintech startups worldwide has dropped significantly to $75.2 billion, down 46% from $139.8 billion a year ago. I’m here. Data is still trickling in for early 2023, but we haven’t heard from anyone yet that venture capital into fintech will pick up.Certainly, his $6.5 billion funding for Stripe is It might skew the tally somewhat, but remember that this is also a down-round.
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But fintech is broad and covers everything from Chime and Alpaca to Brex. In fact, the group is too broad to be of much use. To get a clearer picture of evolving trends, we need to dig deeper and be more specific.
This is the CFO story that everyone on the corporate executive team likes. A naysayer, demanding receipts, and a fuss about budgets.
CFOs play an important role in the evolution of startups. We don’t pay enough attention to CxOs here at TechCrunch because of our focus on founders, but CFOs managed to get our attention last year. It was on track for an IPO before the market blocked its way or pegged the business.
This is bad news for CFOs. The IPO was dropped from consideration due to valuation changes in many startup categories. They are now tasked with growing as much money as possible in a market that will dry up capital faster than the puddles of Death Valley.
But there is also good news. Many fintech startups are building tools for CFOs and their large offices, often referred to as the “CFO stack.”
