KPMG Sees Strong Second Half for Canadian Fintechs After Crypto, AI Raked in $1.6B Funding
KPMG Canada's report indicates that Canadian fintech companies raised $1.62 billion in the first half of 2025, focusing primarily on digital assets and AI startups. This investment trend continues despite a global slowdown in venture financing, as Canadian investors remain eager to support fintech ventures, particularly those leveraging blockchain technology and AI. KPMG partner Edith Hitt noted that digital assets have become increasingly attractive to investors, aided by a more favorable regulatory climate in the U.S. and concrete uses of stablecoins. Nevertheless, funding is down compared to previous years, with the first half of 2025 reflecting a decline from $2.4 billion in 2024. KPMG forecasts a robust second half for fintech investments, with continued interest in AI-driven solutions and digital asset infrastructure, suggesting that the appetite for quality mid-to-large stage equity deals is on the rise. Investors are looking to deploy dry powder capital and back companies that demonstrate high potential for growth and scaling under compliance.
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