CB Insights: global investment in FINTECH has decreased to a minimum over the last four hodnotila Solovyov | 26.05.2020
Analytical research firm CB Insights has prepared a report on the state of the global FINTECH industry for the first quarter of 2020. the results showed that the pandemic Covid-19 forced venture
investors to refrain from investing in startups of financial sector technology in almost all areas.
Outbreak of coronavirus infection and the projected recession has had a very serious impact on the funding of Finance throughout the world. The study showed Agency CB insights, the results of I quarter
2020 was the worst on indicators such as number of transactions in 2016, and funding – from 2017 For the period funding of venture capital investments in the industry decreased to
$6.1 billion for 404 transactions.
Investors abandoned rounds of funding in the early stages, to focus on strengthening portfolios. During the first three months of this year, in the early stages – the training stage
growth (Seed) and the active growth stage (Series A) – FINTECH-startups made 228 transactions, which is the minimum value over the past 13 quarters, and their funding, the investors sent
$1.1 billion, which is the lowest figure for the last 9 quarters.
Funding for FINTECH startups in Asia, North America, Australia, South America and Africa decreased compared to the previous quarter, 25%. So, in Asia in the first quarter of funding
decreased by 69% (to $883 million), and the volume of transactions by 23%.
The only major region where the amount of funding FINTECH segment increased, became Europe. This was due to four mega-rounds in excess of $100 million, including D round (s
financing) of the company Revolut $500 million C round, the company Qonto worth $115 million
On the wave of mergers and acquisitions in the FINTECH segment in 2020 as investors began to note some liquidity. So, in addition to acquisitions of Plaid and Credit Karma, the startup “unicorn” SoFi
bought Galileo for $1.2 billion, and LendingClub has acquired Radius Bank for $185 million, waiting for the closing of the transaction.
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