In Q2 2023, private placement volume in the FinTech industry fell to $7.8bn, a decline of 58% compared to the average of the last four quarters. Rising cost of capital and less focus on cash-burning companies, coupled with overall market uncertainty, are driving institutional FinTech investors towards sub-$100m investments. Despite lower M&A and private placement activity, both public B2B and B2C FinTechs experienced positive share price performance, with gains of +5.6% and +6.0%, respectively. The number of FinTech M&A deals declined slightly to 135 vs.152 in the previous quarter, a year-on-year decrease of 42%. The US remains the hottest place for FinTech M&A activity in Q2 2023 with 63% of deals.