Our State Of Fintech report features data-driven insights from our technology insights platform. We look at fintech investment trends across the world and in key verticals, partnership activity, active investors, top deals, and more.
After a pronounced pullback in investor activity during the early days of Covid-19, Q2’20 has seen renewed signs of activity as funding increased after 2 straight quarters in decline.
In this report, we also explore examples of embedded fintech, the integration of financial products by non-financial companies into their service offerings, a key evolution that will help shape the future of fintech.
- Fintech funding rebounds in Q2’20 but deal activity continues to fall. Funding increased 17% quarter-over-quarter (QoQ) to $9.3B in Q2’20. However, monthly deal activity hit a fresh low of 127 deals in April before picking up the pace in June, which saw 141 deals.
- Fintech mega-rounds ($100M+) hit a new quarterly high of 28 as the largest companies in the space raised additional funding. Mega-rounds have become more common as successful startups are generally staying private longer. However, the recent spate of IPOs and IPO filings may indicate the start of a shift in this trend.
- Asia was the only continent without a dollar funding rebound in Q2’20. North America, Europe, South America, Africa, and Australia all saw an increase in fintech funding QoQ while funding to Asia-based companies fell 37% to $1.6B. However, deal activity in all regions was either flat or down QoQ.
- There are 66 VC-backed fintech unicorns worth a combined $248B.
Q2’20 saw just 1 new fintech unicorn birth (Upgrade).
- Fintech companies continue to mature, with many ready for the scrutiny of public markets. S-1 filings in Q2’20 included Lemonade, nCino, and Rocket Companies.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity