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Fintech Funding Slumps in Ireland
Fintech Funding Slumps in Ireland
Irish fintech companies saw a massive funding decline in 2023, raising only $60.83 million compared to over $1 billion the year before. This represents a staggering 94% drop according to KPMG’s Pulse of FinTech H2’23 report.
The number of funding deals also fell significantly, with just 11 transactions in 2023 compared to 22 in 2022. Notably, a single $53 million investment in payments company NomuPay accounted for the bulk of 2023’s funding.
This Irish slump mirrors a broader global trend. Global fintech investment reached a six-year low in 2023, dropping from $196.6 billion in 2022 to $113.7 billion.
Irish fintechs have also voiced concerns about limited government support. A report by ibec, a banking industry group, found that nearly three-quarters of Irish fintech startups view a lack of state backing as a major hurdle to growth and innovation.
Despite the concerning figures, there’s still optimism for the Irish fintech sector. Experts believe a rebound is likely once market conditions improve.
The KPMG report predicts a resurgence in mergers and acquisitions within the payments sector for the rest of 2024. Additionally, it highlights the growing importance of artificial intelligence, enterprise solutions, tokenization, ESG (environmental, social, and governance factors), and evolving regulatory landscapes.
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