During second quarter 2019, more than $8.3 billion was invested in fintech startups, boosted by a record quarter of 25 $100 million-plus mega-rounds, according to the latest Global Fintech Report issued by research firm CB Insights.
Funding to venture capital–backed fintech companies grew 24 percent quarter-over-quarter during the second quarter and neared previous quarterly funding highs.
Despite the funding surge, second quarter VC-backed deal activity fell to a 10-quarter low, with deals dipping in every continent in second quarter 2019 as North America, Asia and Africa experienced five-quarter lows.
India topped China in fintech deal activity for the first time ever. India saw 23 deals to venture capital–backed fintech companies, exceeding China’s eight deals. Fintech funding in China hit $375 million, narrowly beating India, which saw $350 million invested.
Latin America has become one of the fastest-growing regions for fintech funding. Latin America topped both China and India for fintech funding in second quarter 2019. And the third quarter has already seen a $400 million mega-round to Brazil-based digital challenger bank NuBank.
There are 48 VC-backed fintech unicorns — private startups valued in excess of $1 billion — worth a combined $187 billion. Valuations continued to grow in second quarter 2019 as many companies preferred to raise private financing over going public. There were seven new fintech unicorn births in second quarter 2019.
