Fintech sets quarterly record with $8.9B in venture investment
November 4, 2020
The fintech sector in North America and Europe hit its highest quarterly deal value on record in Q3 with a total of $8.9 billion, yet the deal count of 414 was the lowest in three years. With the financial services industry bracing for a recession, investors have put their money into larger deals for late-stage companies, which have secured 77% of venture capital this year.
Despite the current headwinds, the financial services industry is still ripe for disruption in the long-term, according to our latest Emerging Tech Research report, and fintech remains one of the best-funded and fastest-growing areas of emerging technology. Other highlights include:
Despite the current headwinds, the financial services industry is still ripe for disruption in the long-term, according to our latest Emerging Tech Research report, and fintech remains one of the best-funded and fastest-growing areas of emerging technology. Other highlights include:
- Consumer finance has already surpassed its record 2019, with $5.9 billion invested through Q3
- Cash usage fell by 8% year-over-year, a decline that Square estimated would have taken three years without the pandemic
- Fintech VC exit activity continued its strong year, including multiple $1 billion-plus acquisitions announced in Q3
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