What is Fintech? (5th part)

Last week we started to talk about what Fintech is and how it was affected during the Pandemic.

this is the link: https://medium.com/@licasventures/what-is-fintech-how-it-was-affected-during-the-covid-19-and-some-highlights-from-this-year-79088e8a7592 part 1

https://medium.com/@licasventures/what-is-fintech-2nd-part-1a259a9d0f71 part 2

https://medium.com/@licasventures/what-is-fintech-3rdpart-db561af03aba part 3

https://licasventures.medium.com/what-is-fintech-4th-part-38a5f58248ad part 4

Large Exits In 2019

With the increase in funding for fintech companies in 2019, liquidity remains a concern. 2020 kicked off with two large acquisitions subject to regulatory approval. Visa announced the acquisition of Plaid for $5.3 billion, and Intuit plans to acquire Credit Karma for $7.1 billion. These two deals in early 2020 already surmount 2019 acquisitions, in which 177 fintech companies were acquired for a total of $6.1 billion.

In contrast, 2018 had 193 acquisitions totaling $12 billion. (For merger and acquisition (M&A) activity data we selected venture-backed companies. We also excluded companies who had previously gone public.)

We anticipate more M&A activity in fintech in 2020. The largest acquisitions in 2019 include:

  • iPipeline, a provider of sales distribution software to insurance and financial services companies, was acquired by Roper Technologies for $1.6 billion.
  • Kony, a mobile application developer for fintech companies, was acquired by Temenos for $559 million.
  • PrecisionLender, which provides information for banks to accurately price a loan to a borrower, was acquired by Q2eBanking for $510 million.
  • Ebury, which allows small and mid-size companies to make and receive payments in foreign currencies, was acquired by Banco Santander for $451 million.
  • Wave, which enables payments and payroll for small businesses, was acquired by H&R Block for $404 million.

That’s it for this article about what FinTech is. Stay updated about new articles by following our LinkedIn page, Twitter page, and, of course, our medium page.

Thanks again for reading this article from the Licas Ventures Team

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Licas Ventures

Licas Ventures is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth.