Data analytics companies serving the financial services sector saw explosive funding growth between 2015 to 2019. Despite a steep pullback in 2020 YTD, these companies represent a secular trend that is here to stay.
Global funding to data analytics companies that serve the financial services sector has grown significantly and sustainably since 2015. From 2015 to 2019, investors allocated $9.7B into these companies across 740 deals.
The space rapidly expanded during this period, with funding seeing a compound annual growth rate of 39%. However, YTD deal activity has plummeted. There have been just 45 deals through the end of May, the lowest count for the same 5-month period over the past 5 years.