Canadian fintech investment sinks

Canadian fintech companies saw only US$810 million in total investment in the first half of 2022, compared to US$1.9 billion in the second half of 2021

Canada fintech

Canadian fintech investment sinks. Source:

After a record-breaking 2021 year for Canadian fintech, investment dropped by more than 50% in the first six months of 2022, according to a KPMG report.

Modest US$810 million across 85 deals in the first half of 2022 is a steep fall from US$1.9 billion in the second half of 2021. Compared to the first half of 2021, the decline is even greater, as that investment-lavish period brought US$5.4 billion in investment across 108 deals. 

The majority of fintech investment in Canada in H1 2022 came from VC. Among the venture capital deals, 25 were seed round investments, 23 were early-stage and 17 were later-stage funding rounds.

Although the crypto space faces a downturn today, 29 of the 85 deals involved crypto-related firms. Eight of those deals concerned payments companies and eight more deals financed regtech players.

Despite the investment decline, the interest in the financial technology sector didn’t fade away. Taking into account the over-investment of the segment last year, in 2022 investors are re-balancing their expectations and funnel funds into the most profitable and stable projects.

"We expect fintech to continue to draw interest in the second half of the year, but investors will be more selective about where they deploy capital."
Geoff Rush,
national industry leader, financial services, KPMG in Canada


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Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.