Fintech startups saw investment hit a 9-quarter low in the first quarter of the year amid the coronavirus pandemic.
In Q1’20, funding to fintech startups fell 37% QoQ to $6.1B, while deals fell to 404 rounds, down 19% compared to Q4’19.
Much of the pullback was felt by early-stage fintech startups as seed & Series A funding hit $1.1B, down 13% QoQ, as investors focused more on fortifying existing fintech portfolios rather than making new, riskier bets.
Additionally, nearly every region saw a drop in deals and dollars. Only Europe-based startups saw an increase in fintech funding this quarter compared to Q4’19 — all other regions saw a contraction. In fact, funding to Asia-based fintech startups plummeted 69% QoQ in Q1’20.
Though North America saw the impacts of the coronavirus start later than in Asia, funding to the region was down 29% QoQ in the first quarter.
For more information and more insights on fintech funding trends this quarter, take a look at CB Insights’ The State Of Fintech Q1’20 Report: Investment & Sector Trends To Watch.
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