Canadian fintechs secure $1.62 billion in H1 2025 driven by AI and crypto investment

Canadian fintech companies raised $1.62 billion in the first half of 2025, with digital assets and artificial intelligence (AI) startups attracting the majority of the investment, according to KPMG Canada’s Pulse of Fintech report [1]. Despite a global slowdown in venture capital activity, Canadian investors have maintained strong support for fintechs that are integrating emerging technologies like blockchain and AI into financial services. KPMG expects this trend to continue, predicting a robust second half of 2025 for fintech funding [1].

The report highlights that the most significant gains have come from companies developing blockchain-based infrastructure and AI-driven financial tools. Edith Hitt, a partner at KPMG Canada, noted that digital assets have re-emerged as a focal point for investor interest, even as broader venture investment values have declined [1]. She attributes this to a shift in regulatory tone in the United States and the dismissal of the Coinbase lawsuit, which has helped normalize certain aspects of the digital asset sector.

Investor caution is evident in the overall funding figures. While $1.62 billion is a substantial sum, it is lower than the $2.4 billion invested in the first half of 2024 and significantly below the $7.5 billion recorded in the second half of that year. This decline is attributed to macroeconomic factors such as rising interest rates and trade policies. Dubie Cunningham, a partner in KPMG Canada’s Banking and Capital Markets Practice, explained that investors are holding back and waiting for higher-quality opportunities. The report notes a strong demand for “maturing mid-to-large stage private equity deals,” indicating a preference for more established companies with proven business models [1].

KPMG forecasts continued momentum in the second half of 2025 for investments in AI and digital assets. Hitt emphasized that investor interest in digital assets is expected to remain strong, driven by a favorable regulatory environment in the U.S. and the increasing adoption of stablecoins and tokenization platforms [1]. She pointed out that infrastructure, payment rails, and platforms supporting scalable and compliant digital asset solutions will remain in focus.

On the AI front, the report anticipates even greater adoption of agentic AI in fintech applications such as personal finance, investment management, fraud detection, and lending. Hitt noted that more fintechs are actively deploying AI solutions, which will likely accelerate innovation and investor activity in the sector [1].

The report underscores a broader shift in investor sentiment and strategy within the Canadian fintech ecosystem. As global investment slows, Canadian fintechs are benefiting from a combination of regulatory clarity, technological advancements, and a growing appetite for innovative financial solutions. This convergence of factors is expected to drive sustained interest and funding in the second half of 2025 and into 2026.

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[1] KPMG Sees Strong Second Half for Canadian Fintechs After Crypto, AI Raked in Billions, https://www.coindesk.com/business/2025/08/23/kpmg-sees-strong-second-half-for-canadian-fintechs-after-crypto-ai-raked-in-billions