It was a mixed bag for fintech funding during Q2, according to the most recent CB Insights Global Fintech Report released this week. On the positive side, there were 25 mega-rounds (i.e., rounds of over $100 million), which helped drive global fintech investment. At the same time, fintech deals in Q2 dropped 22% globally on a quarterly basis and declined 23% compared to the same quarter last year.

It seems the trend in fintech funding is going toward fewer deals overall, but higher amounts of money per deal. VCs are more carefully vetting the fintechs they invest in; instead of sprinkling a million here and there, they are judiciously making bigger bets on trying to find the next unicorn. 

In terms of specific sectors, banking and capital markets saw steady increases in funding. Others, such as wealth management tech, actually dropped a bit. Looking ahead, based on this data we’d expect to see a continuing trend of funding concentrated on fewer firms. Instead of casting a wide net, VCs appear to be honing in on specific targets.