Global Fintech Unicorn Startups Decline in the First Half of 2022

Startup Genome, a California-based consulting firm, compiled the number of global financial technology (fintech) startups with unicorn status between 2019 and 2022.

Unicorn status is given to companies with a valuation exceeding US$1 billion.

Over nearly four years, the number of fintech startups fluctuated. In the first half of 2019, the number reached 12 startups. In the second half of the same year, it decreased by one to 11 companies.

Entering the first half of 2020, the number drastically shrank to 5 startups. However, subsequent semesters often saw an increase.

The peak was in 2021. The first half of 2021 recorded 62 startups. The second half of the same year surged to 76 startups.

Startup Genome stated that between 2017 and the end of 2021, there were 200 new fintech unicorns globally—138 of which achieved unicorn status in 2021.

"This shows a 6.5x increase from the number of fintech unicorns created in 2020," wrote Startup Genome in its online report.

Unfortunately, the latest data in the first half of 2022 plummeted to 53 fintech unicorns.

The research team stated that North America generated the majority of fintech unicorns created in 2017, with a final number in 2021 of 49% of the total global fintech unicorns.

This was followed by 22% in Europe and 19% in Asia. Africa, excluding the MENA group, has produced three unicorns to date, all in the fintech sector, by 2021.