August 26, 2019
From what we’ve seen so far in 2019, the question that arises from a FinTech investment perspective is: can one be optimistic? If we look at the numbers, we can see that there has been steady growth until now – 2019 has the potential to be an explosive year for global FinTech investments. Just last year, in H1 2018, FinTech raised more than $16.4 billion from 806 VC/PE investments.
In terms of YoY growth, global FinTech VC/PE funding increased by 34.4% from H1 2018 and increased by 80% from $12.25 billion in H1 2017 to $22.04 billion in H1 2019 through 1068 funding deals. January 2019 saw the highest PE/VC funding, where $4.57 billion was raised from 175 deals followed by May 2019, where $4.13 billion was raised from 185 deals.
Startups from Americas raised $12.31 billion from 504 deals, where the startups from the US accounted for 90.6% of the total Americas VC/PE funding of $11.15 billion in H1 2019. Europe comes in at number two with $5.19 billion raised from 297 Deals. Companies in Asia raised $4.28 billion from 222 deals, companies in Oceania raised $0.185 billion from 17 deals, and African companies raised 0.077 billion from 28 deals.
Please note that the illustration below does not include mergers, acquisitions, ICOs, IPOs, debt funding, crowdfunding, and grants.
In terms of segments, Lending raised the highest amount of funding, with $4.58 billion from 168 deals. A few of the companies who received the highest amount of funding in this segment include Greensill with $800 million raised in its Venture Series round; SoFi with $500 million raised in Private Equity round; and Affirm, which raised $300 million in its Series F round.
The segment that held second place in the funding race was InsurTech, which saw $3.31 billion raised across 157 funding deals. A couple of top fundraises in this segment: the US-based Clover Health’s Series E funding of $500 million and the US-based Lemonade’s series D funding of $300 million.
The Payments segment was third in the list of segments with the highest VC funding having taken place in H1 2019 as the startups in this space raised $2.09 billion across 107 funding deals. The top fundraisers in this segment were the US-based Marqeta’s Series E funding of $260 million and the UK-based Checkout’s Series A funding of $230 million.