Investment in the global FinTech industry has been cut by 33 per cent during the second quarter of the year.

The figures, taken from the latest CB Insights State of Venture report, reveal that all major regions across the world, including Europe, Africa, Australia, the US, Asia, Canada, Latin America, and the Caribbean, have seen funding slashed over the period.

The average deal size is also now down to $23 million, while the number of new Unicorns dropped to a six-quarter low of just 20.

Analysis of the data by the Financial Times reveals that nearly half a trillion dollars have been knocked off the value of once successful FinTech companies.

Following a recent $800 million funding round, Buy Now, Pay Later (BNPL) giant Klarna announced a new valuation of $6.7 billion.

The valuation represents a stark decline of between 80 and 90 per cent compared to its peak of nearly $46 billion in June last year.

The business added that this latest funding occurred during “possibly the worst set of circumstances to afflict stock markets since World War II”, including high inflation, higher gas prices, rising interest rates, fears of a recession, the war in Ukraine, the aftereffects of the first global pandemic since 1918, and supply chain disruption.

The internal valuation of Irish-American FinTech Stripe was also reportedly cut by 28 per cent last week.

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