Member Exclusive, Online Lenders

Lending Briefing: The digital lending fintechs attracting capital in a down market

  • Funding is down across the fintech sectors compared to last year, with less capital going to big segments like payments, baking, and lending.
  • We are taking a look at some of the digital lending fintechs that still secured financing in this past quarter, in spite of the down market.
close

Email a Friend

Lending Briefing: The digital lending fintechs attracting capital in a down market

In a down market, who’s still attracting capital?

Fintech funding is down considerably – the numbers have started to come in, and they’re pretty bad. 

Globally, fintech startups raised $21.5 billion in Q2 2022, 32% less than a year ago according to Dealroom. They reported that the banking, insurtech, mortgages and lending sectors were the most affected, with funding at half of last year’s. 

In a down market, who’s still attracting capital?

Fintech funding is down considerably – the numbers have started to come in, and they’re pretty bad. 

Globally, fintech startups raised $21.5 billion in Q2 2022, 32% less than a year ago according to Dealroom. They reported that the banking, insurtech, mortgages and lending sectors were the most affected, with funding at half of last year’s. 

Similar figures can be found at CB Insights, which revealed that fintech funding is at its lowest level since 2020 on a quarterly basis. Some of the most active fintech investors are more reserved this year, with top VC firms Sequoia and Tiger Global participating in 36% fewer investments in Q2 compared to the prior quarter.

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Lending Briefing: The digital lending fintechs attracting capital in a down market”

Online Lenders

Does B2B BNPL have the potential to emerge as the next top fintech trend?

  • Is B2B BNPL keeping up to speed with the B2C model?
  • Contrary to B2C, B2B BNPL is viewed more as the automation of existing credit processes with slight innovation. However, the model brings its own set of challenges.
Sara Khairi | October 31, 2022
Member Exclusive, Online Lenders

Lending Briefing: Upgrade CEO Renaud Laplanche on fintech lending in a tight market

  • Today, there's less demand for consumer loans, and lenders are tightening their credit books. The 'cautious approach' narrative prevails in many interviews and conference calls.
  • I sat down with Renaud Laplanche, CEO at Upgrade, one of the main direct-to-consumer fintech lenders in the US. We discussed the macro environment, and how he designed Upgrade's business model in a way that is proving resilient during these turbulent times.
Iulia Ciutina | October 12, 2022
Member Exclusive, Online Lenders

Lending Briefing: Debit cards are taking over

  • This year, debit cards have emerged as the preferred payment method for the majority of US consumers, dethroning credit cards.
  • Younger generations are behind this switch – even though they're also getting credit cards, Millennials and Gen Zers prefer to pay with debit.
Iulia Ciutina | September 28, 2022
Member Exclusive, Online Lenders

Lending Briefing: SaaS SMB lending competition heats up as more fintechs enter the market

  • More fintechs are coming into the US market to offer banks solutions that digitize and streamline their SMB loan application and decisioning process.
  • As this segment of the market is drawing more interest, we sit down with Ranqx to delve into its strategy of scaling in the US market.
Iulia Ciutina | September 14, 2022
Online Lenders, Sponsored

Without the right data, your bank could be turning away qualified borrowers

  • Using alternative data provides a more holistic view of a consumer's creditworthiness.
  • Financial services expert Gary Harvey explains how FIs can achieve this using the right data sets.
Equifax | August 23, 2022
More Articles