over the next A few weeks, the venture capital industry will compile and release data related to its Q4 2020 performance, capping a year that saw the world of private capital freeze, thaw and burn.
But we can have a look at an important part of the VC universe soon, for a preview of global fintech Investment results from CB Insights. The dataset invests in fintech companies from early October to December 12 worldwide.
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Given that the last two weeks of the year are not renowned for productivity, the datasets we have should be representative for this critical slice of the venture capital market. (For our perspective on the third quarter fintech VC market, see here)
To be honest, I did not plan to write this data when I first dug it; I was ready for a later release, expecting myself to surpass the full numbers. However, the results collected aligned with several themes during 2020, making it a representative basis of sorts for the venture capital market of the year. So it was very interesting not to unpack.
What happened to fintech venture capital investment in Q4 and 2020? Some startup stages and regions did well, but amid the good news, one of the hottest domestic segments of startup land has not set a good global year. Let’s get to the numbers.
One final caveat: While these results are missing from a few weeks of input, we believe these numbers will prove to be directly accurate when all results are released by various limbs of long and enterprise data tracking.
North America and Europe shine, Asia falls
Using projections for the rest of 2020, it is clear that fintech venture capital is not equally distributed in the world. If you are reading this in the United States, for example, or the UK, you might be surprised to learn that CB Insights Global fintech venture capital deals and dollar volumes are expected to decline in 2020. Surely, not with all the Neobank and trading-platform deals seen?
Yes, in fact, because fintech investment has increased in dollar terms in both North America and Europe, but a large decline in Asia has led to results in the other two regions. Here’s the preview chart clip: