The Fintech Story In America- More than 1400 Deals, Close to 40 Billion USD Investments
Throughout H1’22, the United States recorded 34.9 billion USD of fintech financing in the Americas, down from $49.7 billion in H2’22.
When we talk about major acquisitions and mergers, SimpleNexus was acquired for $1.2 billion by nCino. Similarly, Bottomline Technologies was acquired for 2.6 billion USD by PE firm Thomas Bravo. Another major deal during this period was that of Technisys, which was acquired for $1.1 billion by SoFi, and Ramp raised $748 million in venture capital.
In the meantime, money invested in Brazil witnessed a depreciation from 3.7 billion USD to 1.4 billion USD, while investments in Canada fell from 1.9 billion USD to 810 million USD.
What were investors looking for?
An analysis of the completed deals revealed the focus of the investors on the current profitability of companies. Investors also placed substantial priority on revenue growth coupled with the cash flow of the companies they invested in.
This is obviously indicative of a cautious and balanced approach where huge sums were not betted on for the sake of future potential. The other crucial facet of the investment trends was the lack of uniformity across fintech sub-sectors. Also, public fintech businesses witnessed significant investment pressures, whereas private companies remained relatively unscathed.
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