Summary : Fintech companies are raising less money and at lower valuations, according to Pitchbook’s Q2 fintech report.

By the numbers: Fintech companies raised $24.1 billion in venture dollars during the second quarter, across more than 1,100 financing deals, according to Pitchbook.

What we’re watching: After a booming IPO and M&A market for fintechs in 2021, the pace of deals has slowed dramatically in recent quarters.
• The research firm noted there were only 68 VC exits for the quarter, ending June with just $11.2 billion in exit value.

Fintech companies are raising less money and at lower valuations, according to Pitchbook’s Q2 fintech report.

Why it matters: Lower public valuations and a slowdown in M&A and IPOs are having downstream effects on fintech companies seeking VC funding.By the numbers: Fintech companies raised $24.1 billion in venture dollars during the second quarter, across more than 1,100 financing deals, according to Pitchbook.
• That represents a decline of 17.8% from Q1 — the biggest drop since the third quarter of 2018.
• Valuations were down during the period, with the median pre-money valuation for late-stage fintechs declining 40.6% to $153.0 million, from Q1’s $257.5 million.
• Even at the early stage, the median pre-money valuation fell 19% to $51 million, from $63 million in the prior quarter.What we’re watching: After a booming IPO and M&A market for fintechs in 2021, the pace of deals has slowed dramatically in recent quarters.
• The research firm noted there were only 68 VC exits for the quarter, ending June with just $11.2 billion in exit value.