These FinTech sectors will thrive in 2023 🚀; Crypto contagion comes in waves… Here's another one 🌊; Bye, Blockchain 👋
FinTech is Eating the World, 13 January
Hey Everyone,
TGIF! What a week it was… 🤯 And it’s not even over since today I’m serving some icing on the cake 🍰 We’re going to look at the FinTech sectors that will thrive in 2023 (+ some super valuable data & where founders and investors should focus on), crypto contagion that comes in waves (here's another one & what it tells us), and who’s saying goodbye to Blockchain (you will be surprised!). Let’s jump straight into the juicy stuff.
These FinTech sectors will thrive in 2023 🚀
A step back 🔍 Earlier I covered both the top FinTech stories from last year as well as shared my predictions for 2023 (see them below in case you somehow missed it). Although some guidance was already given, I think it’s valuable to take a closer look at the specific sectors of FinTech that should thrive in 2023.
Top FinTech stories of 2022, a year like no other 🌊 [10 big stories with 20+ bonus reads]
Top 10 FinTech predictions for 2023 🔮 [coupled with 20+ bonus reads and extra resources, these are the only FinTech predictions you need for next year]
Data 📊 But before we do that, let’s look at the data. In 2022, despite a decrease in overall venture funding, the financial services sector remained the top choice for VCs. This trend is expected to continue in 2023, with FinTech being a strong area of focus.
According to Crunchbase data, over the past 5 years, startups in payments and banking have received the most venture funding within the FinTec sector. However, in 2021, the funding for cryptocurrency startups surpassed those two leading sectors but saw a decrease in 2022 (& we all know why). Blockchain tech also saw an increase in funding in 2021 and continued to grow in 2022. In contrast and surprisingly, e-commerce and insurance startups have seen a decrease in funding as a proportion of total investment dollars.
With that in mind, there’s a natural question - where should FinTech founders and investors focus in 2023? There are definitely a few strong winners. Let’s take a look.