According to the Pulse of Fintech H2’20, a bi-annual report on global fintech investment trends published by KPMG, overall global fintech funding across M&A, PE and VC was US$105 billion across 2,861 deals in 2020: the third highest level of investment in fintech ever.
With the exception of M&A – which saw deal value drop over 50 percent (from $130 billion in 2019 to $61 billion in 2020) – the overall fintech market proved remarkably resilient in 2020 despite a broad array of uncertainties, from the global pandemic to the US presidential election. Following a short COVID-19 driven pause in H1’20, fintech investment bounced back strongly in H2’20, more than doubling from H1’20 ($33.4 billion) to H2’20 ($71.9 billion). The US was the dominant benefactor for fintech investment in 2020, while the payments space continued to dominate investment from a sector perspective.
Strong VC investment throughout the year helped buoy overall fintech investment. Global fintech-focused VC investment reached $42 billion in 2020, including $20.5 billion in H2. Both the Americas ($23 billion) and EMEA ($9.2 billion) regions saw record highs of annual fintech-focused VC investment. US-based wealthtech Robinhood raised the most VC funding in H2’20: $1.3 billion across two rounds ($600 million and $668 million). Several digital banks also raised funding rounds greater than $500 million, including Sweden-based digital bank Klarna ($650 million), UK-based Revolut ($580 million), and US-based Chime ($533 million). [Read more…] about Venture capital investment in fintech more than doubles in second half of 2020 – expected to remain strong into 2021
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