A new report from NY-based software program agency CB Insights has discovered that monetary providers business startups raised $33.9 billion in 2019–and that almost half of that cash was was focused on 83 ‘mega-rounds’, which CB defines as rounds price $100 million or extra.
Based on the report, 2019 additionally noticed a document of 24 unicorn births, eight of which occurred in This autumn’19–bringing a complete of 66 VC-backed fintech unicorns price a mixed $243.6B. Subsequent Insurance coverage, Bight Well being, Flywire, Excessive Radius, and Ripple had been all added to the unicorn roster final yr.
Total decline in funding factors to business maturation
Nonetheless, the whole quantity of funding raised within the fintech business in the course of the yr 2019 was roughly 17 p.c decrease than the $40.eight billion raised within the yr prior. The variety of fundraising offers additionally fell from 2,049 to 1,912.
The lower in funding appears to be related to a shift by VC corporations away from early-stage startups and towards corporations in later phases of growth. Certainly, financing for startups trying to shut Collection A or Seed rounds noticed a five-year-low in 2019, whereas fundraising for startups in Collection B or past reached a five-year-high.
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2019 additionally noticed a geographical shift in funding. Based on the report, growing and frontier markets had been acquired fairly a little bit of consideration: Africa, South America, Southeast Asia, and Australia hit new record-highs final yr.
Asia takes the lead over Europe, Germany emerges as a attainable fintech hub
Asia additionally stepped out over Europe by way of capital raised and the variety of offers accomplished within the second half of the yr: $1.eight billion was raised in 157 offers in Asia throughout Q3 of 2019, whereas European startups raised $1.6 billion by means of simply 95 offers. The development continued in This autumn, when 100 fundraising rounds held by European startups raised simply $1.2 billion, whereas $2.14 billion was by means of 125 offers in Asia.
Particularly, Southeast Asia (SEA) raised $993 million throughout 124 rounds in 2019 in what was the area’s finest yr but.
Curiously, nevertheless, a lot of the funding that passed off in Europe was focused on Germany, pointing to the business as a attainable rising fintech hotspot: 65 offers within the nation introduced $1.79 billion in fundraising–greater than double the $757 million raised by means of 56 offers in 2018.