The report sheds light on how fintech managed to change during Q2 2020
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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