New review into fintech funding launches



A review of the fintech funding landscape has launched today, to address the slump in venture capital investment into the sector.

The Review into Fintech Funding, which as launched by industry group Fintech Week London (FTWL), will reportedly look to bring together regulators, investors and finance firms to address the decline in funding, according to City AM.

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FTWL said it has already received the support of the London Stock Exchange for the new review and is now inviting input from across the industry.

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FTWL boss Raf de Kimpe told City AM that the dramatic plunge in valuations and funding would dominate the conversation during Fintech Week London, which starts today.

“Now more than ever, especially post pandemic and with what’s happening in the economy, it’s important for people to find the right partnerships and the right collaborations and even learn from each other on how to tackle this,” he said.

“We’re going to look at what has happened to funding, how can we learn from this and how we can work together to make sure that industry gets better than before.”

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Rising interest rates and worsening macroeconomic conditions have put the brakes on venture capital funding.

Around $108.5bn (£91bn) was raised across 7,651 deals during the last quarter, according to data from analytics firm CB Insights, marking the biggest quarterly percentage drop in deals and the second-largest drop in funding in a decade.