CB Insights: Global Fintech Report Q3 2019
Article Synopsis :
As usual, the CB Insights Global Fintech Report featured some interesting numbers.
For Q3 2019, the report found that fintech funding had peaked at $8.9 billion, a new high, if Ant Financial’s huge $14 billion investment in Q2 2018 is excluded.
Funding had already passed 2017’s annual total when year to date it reached $24.6 billion. This included 19 funding rounds worth more than £100 million, totalling around $4 billion for the quarter.
Deals are being done
The deals bounced back in the quarter, rising 6% from Q2, but each quarter is down on 2018.
Seed/angel and Series A funding deals fell to an 11-quarter low and funding hit its lowest point for seven quarters.
A pullback in early stage funding hit US deals, which contributed to the overall drop in 2019 global deals through Q3’19.
China shades India
Asia did good business as China reclaimed the lead from India as Asia’s top deal hub. China did 55 in the quarter, compared to India’s 33, but the sub-continent pulled in $674 million, just ahead of China’s $661 million.
Meanwhile, Southeast Asia set a new annual record, raising $701 million across 87 deals through the quarter. This included the two biggest deals seen since 2015: $100 million Series B to Singapore-based Deskera and $100M Series C to Vietnam-based MoMo.
Challenger banks attracting attention
Challenger banks had a good quarter, and included NuBank’s $400 million Series F, the largest reported equity investment to a challenger bank. This made NuBank the highest valued challenger at $10 billion.
Competition was fierce among startup-focused challengers, with deals to Ramp Financial, Mercury, and Stripe, which launched card issuing.
The quarter saw the creation of six new fintech unicorns – Hippo, Judo, Deposit Solutions, QuintoAndar, Dave, and C2FO – so keep an eye out for the,
Q4 saw the creation of Next Insurance, Ebanx, and Riskified. Meanwhile, NuBank, Gusto, and Stripe, among others, continued to pull in cash. Non, however, have given any indication that an IPO was imminent.
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Digital Insurer's CommentsThe end of last year showed strong funding for fintech.
Challenger banks were making most of the running, and while Asia was raking in the cash, deals elsewhere, including the US, were down.
The COVID-19 crisis will have stunted some of these plans – and delayed all but essential funding in the past couple of months – but as parts of Asia begin to emerge from the lockdown, let’s see if these new unicorns put their time in isolation to good use.
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