FinTech funding rebounds 17% in second quarter

FinTech funding increased 17 per cent to $9.3 billion in the second quarter, compared to the first.

The latest CB Insights analysis showed that the amount of deals also rose to 141 in June, from 127 in April.

FinTech 'mega rounds' worth more than $100 million also hit a new quarterly high of 28, with the report stating these are becoming more common as successful startups are generally staying private longer. "However, the recent spate of IPOs and IPO filings may indicate the start of a shift in this trend."

North America, Europe, South America, Africa and Australia all saw an increase in FinTech funding, with only Asian firms seeing investment slip 37 per cent to $1.6 billion. However, deal activity in all regions was either flat or down quarter-on-quarter.

While the more mature FinTechs in the sector continued to draw in investors, smaller firms experienced a pull-back in activity, although those benefitting from e-commerce sales during the pandemic remained optimistic about future funding.

The CB Insights results follow recent Innovate Finance research, which showed that while the Coronavirus has meant that the number of deals and total capital raised by UK FinTechs in the first half was clearly down compared to the same period in 2019, investment was actually up on the previous six months.

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