The drop was also notable compared to the same period in 2021, when investments totaling US$5.4 billion were made through 108 deals, the company added.
However, KPMG warned that the first half of 2021 represents a unique case as it is considered one of the strongest periods on record for investing.
KPMG says most of Canada’s fintech investments in the first half of the year came from venture capital, including 25 seed funding deals, 23 seed funding deals and 17 funding deals at later stages.
More than a third of all fintech transactions have taken place in crypto-assets, despite a slowdown in that market, KPMG said.
The drop in fintech investment comes amid a broader decline in the sector, which has prompted several start-ups and big tech companies to lay off workers and cut spending.
“The market slowdown and subsequent drop in tech valuations has caused investors to hit the ‘pause’ button over the past few months, but with so much fintech investment over the past year, we’re seeing this as a rebalancing of expectations, or as a reset of the sector, if you will,” observed the national chief financial services officer at KPMG in Canada, Geoff Rush, in a press release.
“We expect the fintech sector to continue to generate interest in the second half of the year, but investors will be more selective about where they deploy their capital. »