Accroding to KPMG Pulse of Fintech H1’21 total fintech investment in Canada skyrocketed to $4.8 billion in the first half of 2021 , already surpassing the previous annual record, set in 2017.
Canada saw robust M&A deal value in H1’21, drive primarily by Nasdaq’s acquisition of cybersecurity firm Verafin for $2.7 billion, and a number of smaller M&A deals, including the $265 billion acquisition of PayBright by Affirm for $265 million and the $113 million acquisition of Flexiti by Curo.1 Canada is attracting larger VC deals as fintech startups mature, evidenced by Wealthsimple’s $600 million raise and Fraction Technologies’ $220 million raise in H1’21.Corporate interest and investment in fintech continued to diversify, both to accelerate internal capabilities and to support others; in H1’21, RBC launched RBCx — a platform aimed at providing holistic financial and entrepreneur support services to technology startups.2
Fintech investment is expected to remain strong in Canada, particularly in AI-driven solutions, payments, and crypto.