Fintech startups raised $34B in 2019

UPDATE 1 January 2024: Total fintech investment in the Americas reached an estimated $78.3bn with 2,136 deals in 2023.  See updated post here

Below is out post of 22 February 2020

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Great article by CB Insights.  Reports that financial services startups raised less money in 2019 than they did in 2018 as VC firms looked to back late stage firms and focused on developing markets, a new report has revealed.  CB Insights’  annual report found that fintech startups across the world raised $33.9 billion in total last year across 1,912 deals, down from $40.8 billion they picked up by participating in 2,049 deals the year before.

Image 1: In the North America box in the first image above, you will see those firms we wrote about in another post today on the Top Ten US Fintechs worth $88.1bn.

Image 2: The bar chart above early-stage deals dropped to a 12-quarter low as deal share globally shifts to mid- and late-stages.
  
The  comprehensive report covers:

• Early stage startups struggled to attract money: Per the report, financing for startups looking to close Seed or Series A dropped to a five-year low in 2019. On the flip side, money pouring into Series B or beyond startups was at record five-year high.
• Emerging and frontier markets were at the centre stage of the most of the action: South America, Africa, Australia, and Southeast Asia all topped their annual highs last year.
• Asia outpaced Europe in the second half of last year on both number of deals and bulk of capital raised. In Q3, European startups raised $1.6 billion through 95 deals, compared to $1.8 billion amassed by Asian startups across 157 deals. In Q4, a similar story was at play: European startups participated in 100 rounds to raise $1.2 billion, compared to $2.14 billion* raised by Asian startups across 125 deals*.
• Emergence of 24 new fintech unicorns in 2019: 8 fintech startups including Next Insurance, Bight Health, Flywire, High Radius, Ripple, and Figure attained the unicorn status in Q4 2019, and 16 others made it to the list throughout the rest of the last year.

Source: https://www.cbinsights.com/research/report/venture-capital-q4-2019/ and https://techcrunch.com/2020/02/22/fintech-startups-raised-34b-in-2019/

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Posted by Peter Oakes (www.peteroakes.com / Twitter @oakeslaw @US_Fintech @FintechUK_HQ @FintechIreland)
#FintechUS #USFintech
See also www.UKFintech.com www.FintechIreland.com