THE CHANGING LANDSCAPE OF CANADA’S FINTECH SECTOR - Sectoral Trends and Characteristics of the

Ivey_fintech_infographic[24 03 05] THE CHANGING LANDSCAPE OF CANADA’S FINTECH SECTOR Sectoral Trends and Characteristics of the Top 150 FinTech Companies of 2023 Soumyarup Dasgupta developed this Research “Bite” under the guidance of Ivey Professor Romel Mostafa, the Director of the Lawrence National Centre for Policy and Management. [...] Research Bite March 2024 The Changing Landscape of Canada’s FinTech Sector Sectoral Trends and Characteristics of the Top 150 FinTech Companies of 2023 Key Highlights • Information from Crunchbase, Pitchbook and public sources was extracted to assemble a dataset of 1500 Canadian FinTech companies, from which the top 150 firms were identif ied. [...] In Figure 3, the inner doughnut represents the percentage of companies participating in the six funding stage categories, while the outer doughnut represents the dollar value of the capital raised by f irms in each of those categories. [...] In 2018, while 44% of the FinTech companies raised funding at a seed level, contributing to 13% of the total funding value, in 2023, the proportion of seed rounds remained the same at 45%, but their cumulative dollar value as a percentage of total funding in 2023 halved to 6%. [...] This trend can be attributed in part to greater maturity of the sector and in part to the rise in risk-free rates, which has led to an increase in the expected rate of return from equity investments.