Fintech startups set VC records as the 2021 fundraising market continues to impress – ClearTips

While waiting The results of Full First-Quarter Venture Capital to leave fintech startups, we knew they were going to outsize. The exchange first traced the pace in which huge venture rounds were invested in startup Nick, noting that by mid-March the fintech market had already hit a record number of $ 100 million rounds.

But the biggest venture capital round is only part of the fintech investment picture, so we were looking forward to what happened in the typically important startup sector. Now we have got the data, so today we are digging with both hands.

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According to the CB Insights compilation of Q1 2021 fintech venture capital data from around the world, the first three months of the year were the most valuable periods for fintech investments. Somewhat shockingly, the first quarter beat the infamous second quarter of 2018, when Ant Group raised a $ 14 billion goal, skewing the category’s longitudinal data that some analyst groups discount it for analytical purposes only .

This time it was not necessary: ​​614 tracked fintech deals in Q1 totaled $ 22.8 billion, enough to set all-time highs, according to the report, to the Ant Group. According to CB Insights, the quarterly fintech VC deal volume increased by a modest 15% compared to a year ago, while VC dollar volumes in the sector were up 98% at similar intervals.

The funding boom was a global affair, as we will be doing soon. We are also going to chat sub-sectors in the world of fintech, parsing where the most enterprise activity is to track, and, critically, where the VC is pushing – or pulling back – their attention and Finance.

So, where and why did Fintech Venture Capital Market pay the most money in the first quarter? We will chat data as we go, but the exchange also included vice-chancellors from three continents who have invested fintech to help provide context: we will hear from Jessie Wessler, A partner in CapitalG, based in North America; Cola mirror, A general partner on the Ventures platform located in Africa; And Shiyan Koh, A general partner in the Hustle Fund based in Asia.

Let’s talk a few key fintech numbers, and then rip into enterprise results by geography and focus.

Huge checks, innumerable exits

While we are beyond the greatest scrutiny today to get a more holistic view on the state of fintech venture capital, we cannot discount them. So, in a nutshell, what does it mean by the mega-round space or the funding category of rounds of nine figures and more? Some 57 were picked up by fintech startups worldwide in the first quarter, or about 4.5 per week. The number was 30 in Q4 2020 and just 21 in Q1 2020.

The fintech space held a large value of 69% of total venture capital during the quarter of 57 mega-deals in the first quarter. Do not be surprised by that figure; A single mega-round can add value to 50 seed deals very easily.

The massive results also shouldn’t come as a complete surprise, Wessler of CapitalG told ClearTips in an email, “The reality is that fintech has been a hot category for years.” What might happen to the recent acceleration of capital disbursement in financial technology startups? Weisler said that it is “a combination of the ubiquity of smartphones and modern Internet, the development of modern cloud technology and advances in APIs and modular services.”

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