Our State Of Fintech report features data-driven insights from our emerging tech insights platform. We take a look at global fintech investment trends in key financial verticals, partnership activity, top deals, and more.
Q2’21 marked another banner quarter across deals, funding, exits, and mega-rounds for global fintech.
In this report, we dig into what drove this quarter’s $30.8B funding boom and explore trends including embedded insurance, compliance in the age of cryptocurrencies, and emerging corporate card and expense management players.
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- Q2’21 was the largest funding quarter on record. Across 657 deals, global VC-backed fintech companies raised a record $30.8B, shattering last quarter’s funding record by 30%. This impressive funding growth was accompanied by a modest 2% deal growth quarter-over-quarter (QoQ) and a 29% increase year-over-year (YoY).
- Explosion of mega-rounds drove the funding boom. This quarter, global fintechs raised 88 mega-rounds (deals worth $100M+) — up from 60 in Q1’21 — accounting for 70% of total funding. As a result, the average deal size grew 28% from nearly $37M in Q1’21 to $47M.
- South America led growth in both funding and deal count. Funding to South America-based fintechs grew dramatically by 153% QoQ, while deal activity on the continent grew 52% QoQ — the largest increase among regions. Deal activity was varied with QoQ growth across North America, South America, and Australia, while Asia, Europe, and Africa all saw deal declines. However, across the board, all continents saw increased funding.
- Fintech public exits reached new highs. There were 19 public exits (including announced, but not yet completed, deals) for VC-backed fintech companies in Q2’21. In addition to traditional IPOs, a notable portion of these deals represented SPACs, which have become an increasingly popular path for fintechs to enter public markets.
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