Pulse of Fintech H2’20, a bi-annual report on international Fintech investment developments released by KPMG, notes that global Fintech funding across mergers-and-acquisitions (M&A), private equity (PE) and venture capital (VC) stood at $105 billion across 2,861 different deals in 2020. This was reportedly the third-highest level of investment in Fintech ever made.
With the exception of M&A, which saw overall deal value decline by more than 50% (from $130 billion in 2019 to around $61 billion last year), the overall Fintech sector proved to be quite resilient during 2020 despite the socioeconomic uncertainty created by the COVID-19 pandemic and US presidential elections.
Following a fairly short COVID-related slowdown in activity during H1 2020, Fintech investments managed to recover quite strongly in H2 2020, the report from KPMG noted. In fact, they more than doubled from H1 2020 ($33.4 billion) to H2 2020 ($71.9 billion). The United States received the most Fintech investments last year, meanwhile, the payments sector maintained its dominance in terms of funding acquired.
Strong and steady venture capital investment throughout 2020 helped support overall Fintech investment and related developments. Global Fintech VC investment managed to reach $42 billion last year, which included $20.5 billion during H2 2020. North and South America ($23 billion) and EMEA ($9.2 billion) regions received record amounts of Fintec-related VC funding.
US-headquartered digital investment platform Robinhood was able to secure the most VC funding during the second half of 2020. The zero-fee stock trading app provider raised $1.3 billion across two different rounds ($600 million and $668 million). Several digital banking challengers also acquired substantial funding. Sweden’s Fintech firm Klarna secured $650 million in capital, UK-based Revolut finalized a $580 million round, and US-based Chime raised $533 million via funding rounds.
Anton Ruddenklau, Glob ..
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