What is Fintech? (4th part)
Last week we started to talk about what Fintech is and how it was affected during the Pandemic.
Growth In Leading Countries
In 2019, fintech companies raised $16 billion across 1,057 companies in the U.S., $5.2 billion across 342 companies in the U.K., $4.6 billion across 199 companies in India, and $3.7 billion across 147 companies in China. Germany rounds out the top five with $1.7 billion raised across 83 companies. Singapore raised $0.8 billion, but with more companies at 106. With the upswing in investments over 2018 and 2019 in financial services, we look at growth by country year-over-year. Fourteen of the top 17 countries grew in investment dollars year-over-year. Countries with year-over-year growth in fintech funding from 2018–2019 between 75 and 100 percent include India, Germany, and the U.K. The countries that grew the most off of a very low amount in 2018 include Vietnam, Sweden, Australia, and Brazil. For the largest two markets in fintech, U.S. funding was up by eight percent year-over-year, and China fintech funding was down 86 percent year-over-year from 2018–2019 — though invested dollars were fairly close.
Active Seed And Venture Investors
With the increased investment activity in 2018 and 2019, we thought it would be of interest to review the most active investors at the seed and venture stages. At the seed stage, Techstars, Y Combinator, and 500 Startups led in the number of fintech portfolio companies invested in over 2018 and 2019. Alongside leading accelerator programs three seed-stage investors top this list along with Global Founders Capital, Seedcamp, and SV Angel.
The most active venture and private equity investors are geographically diverse and represent a mix of leading venture firms, fintech-focused investors, corporate venture, and late-stage alternative investors. Leading by the number of portfolio companies in 2018 and 2019 were Silicon Valley-based Andreessen Horowitz, with a dedicated fintech practice, and Ribbit Capital which invested globally in companies aiming to disrupt financial services. Third on the list was Anthemis Group, which focused on financial services based in London, U.K., and New York-based Digital Currency Group, which invests in blockchain. Silicon Valley-based philanthropic investment firm Omidyar Network rounds out the top five. Sequoia Capital in China, India, and the U.S. are all active investors in fintech, largely in distinct portfolio companies.