Global investments in fintech reach US$25.6 billion in H1
Monday, 11 30 2020, Category: Technology, Country: World
While overall global fintech funding fell during the first half of 2020, with US$25.6 billion of investment globally across 1,221 deals, corporate deals are driving continued strength in VC activity, according to the Pulse of Fintech H1’20, a bi-annual report on global fintech investment trends from KPMG International.
A sharp drop in M&A investment drove most of the decline. During H1’20, M&A accounted for just US$4 billion* of fintech investment (compared to $85.7 billion in H2’19), including the $1.3 billion reverse merger of Open Lending. The stalled M&A reflects both a general slowdown in deal activity and investors pressing pause on major deals in order to re-consider valuations and risk appetite given COVID-19.
Despite global uncertainty, VC investment was strong in all regions of the world – and is on track to surpass previous annual record highs should the trend continue. In H1’20, VC investment in fintech accounted for $20 billion, including $9.3 billion in the Americas, $6.7 billion in Asia, and $4 billion in EMEA. Indonesia-based Gojek raised $3 billion in the largest VC deal of the quarter – and the largest fintech deal overall. Gojek competitor Grab accounted for the second largest fintech VC deal ($886 million), followed by Stripe ($850 million). Late-stage deals accounted for a significant proportion of VC investment as mature fintechs continued to attract large funding rounds.