Irish Fintech Funding Plummets by 94% in 2023
In 2023, funding for Irish fintech companies experienced a significant drop of 94%, according to newly released research.
A report by KPMG titled “Pulse of FinTech H2’23” revealed that Irish fintech firms only managed to secure $60.83 million in funding during 2023, a stark contrast to the over $1 billion raised in the previous year. The number of deals also plummeted from 22 in 2022 to a mere 11 transactions and investments in 2023.
Of particular concern is the fact that the majority of investment in 2023 was concentrated in a single deal – the $53 million raised by payments company NomuPay.
This decline in Irish fintech funding aligns with a global downturn in the sector, with global fintech investment falling from $196.6 billion across 7,515 deals in 2022 to $113.7 billion across 4,547 deals in 2023.
This setback for Irish fintech comes half a year after a report by banking lobby group ibec highlighted that nearly three-quarters of Irish fintech startups viewed a lack of state support as a major obstacle to growth and innovation.
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Despite these challenges, there remains some optimism regarding the resilience of Ireland’s fintech sector and its potential for recovery once market conditions stabilize.
Ian Nelson, head of financial services at KPMG in Ireland, noted that opportunities still exist for disruptors in areas such as regtech, payments, insurtech, and wealthtech.
Looking ahead to 2024, the report predicts a resurgence in M&A activity in the payments market, increased focus on AI and enterprise solutions, and potential opportunities arising from tokenization, ESG initiatives, and evolving regulatory requirements.
Nelson emphasized the growing importance of fintech and digital finance in Ireland, as outlined in the Ireland for Finance Action Plan 2023. However, he acknowledged the ongoing challenge of finding a balance between regulating fintech firms and fostering innovation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
