PriyaPatelTLDR:
- Irish fintech investment plummeted by 94% in 2023, according to KPMG.
- Global decline in investment due to rising interest rates and geopolitical uncertainty.
Investment in Irish fintech companies dropped significantly in 2023, with only 11 transactions totaling $60.83 million, a stark decline from $1 billion across 22 deals in 2022. This trend was reflected globally, with total investment decreasing from $196.6 billion in 2022 to $113.7 billion in 2023. The second half of the year was particularly lackluster, with no transactions recorded in the fourth quarter for the first time since 2012.
Head of technology and media at KPMG Ireland, Anna Scally, predicts a subdued start to investment in 2024 but notes that a decline in interest rates could spark a revival in deals activity. Investors are cautious and will be looking to invest in companies that demonstrate a clear path to sustainable revenue and profitability.
