The report sheds light on how fintech managed to change during Q2 2020
Study reflects fintech investment trends of Q2 2020. Source: shutterstock.com
CB Insights has conducted research revealing that despite fintech funding rebounds in Q2 2020, deal activity continues to fall. Funding grew 17% quarter-over-quarter to $9.3 billion in Q2 2020. Nevertheless, monthly deal activity hit a fresh low of 127 deals in April before picking up the pace in June, which saw 141 deals.
Besides, fintech mega-rounds hit a new quarterly high of 28 as the largest companies in the space raised additional funding.
Mega-rounds have become more common since successful startups are generally staying private longer. Nevertheless, the recent wave of IPOs and IPO filings may indicate the start of a shift in this trend.
The report highlighted that Asia was the only continent without a dollar funding rebound in Q2 2020. North America, Europe, South America, Africa, and Australia all saw an increase in fintech funding quarter-over-quarter while funding to Asia-based companies dropped 37% to $1.6 billion. However, deal activity in all regions was either flat or down quarter-over-quarter.
The research also found that there are 66 VC-backed fintech unicorns worth a combined $248 billion. Fintechs continue to mature, with many ready for the scrutiny of public markets.
We’ve reported that 67% of US retailers now accept some form of no-touch payment. That includes 58% that accept contactless cards, up from 40% in 2019 and 56% that take digital wallet payments, compared to 44%.
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