September 16, 2019
FinTech startups around the world raised $3.21 billion in funding in August 2019 across 173 VC funding deals — a 19.3% decline from the $3.98 billion raised by FinTech startups in July 2019. The number of deals also saw a minor decrease of 15.6% from 205 deals in July 2019.
The Americas dominated global FinTech VC funding in August with 46.5% in contributions in funding value ($1.48 billion) and 45% in the number of deals (78). Europe was placed second with 29.7% in contributions to the global FinTech VC funding in August by value ($948.4 million) and 24.8% in the number of deals (43).
Country-wise, the United States led the charge in August with 45.1% in contributions in funding value ($1.43 billion) across 66 funding deals. Sweden came second with 14.8% in contributions to the global FinTech funding by value ($472.5 billion) through four VC/PE funding deals. Ireland, Australia, and China contributed 8.8% ($283.2 million), 8.7% ($279.4 million), and 6.6% ($213.3 million), respectively, in terms of funding value.
Among the segments, Lending led the VC funding race in August 2019 with $1.15 billion in funding across 31 deals — a staggering 102% MoM growth from $572 million raised in July 2019. The segment saw some high-value deals with Castlehaven Finance’s $280.6 million funding round being the highest in this segment. Some of the other big fundraises in this segment in August were LendInvest’s funding of $248.8 million and the US-based Better’s Series C funding of $160 million.
The segment that held the second place in the funding race was neobanks/digital banks, which saw $532.9 million raised through only 5 funding deals. A couple of significant funding deals in this segment were $460 million raised by the Sweden-based Klarna and $32.5 million raised by the Singapore-based Aspire.
InsurTech was third in the list of segments with the highest VC funding in August 2019, as the startups in this space raised $484.2 million across 13 deals. US-based company Root Insurance raised $350 million in a Series E funding round. A couple of other noteworthy funding rounds raised by startups in this segment were $60 million raised by the US-based Ethos Life and $47 million raised by the US-based Kin Insurance.
B2B FinTech and WealthTech were the other two among the top five FinTech segments in terms of funding value in September. B2B FinTech startups raised $358.9 million across 12 deals. The US-led the B2B FinTech Funding charts with Scale Factor raising $60 million. Another major funding deal in this segment was $70.4 million raised by China-based Baiwang Cloud.
WealthTech startups raised $336 million across 33 deals. The key contributor to the global funding in this segment was US-based Long-Term Stock Exchange, which raised $50 million in Series B funding round.