The Fintech market is booming. A convergence of factors such as the pandemic-driven acceleration of online payments and financial services at large, the abundance of cheap capital and the entrance of new types of investors into venture capital and a strong capital market have brought an acceleration in funding, valuation and exits.
Q3 has been the best quarter ever for fintech, let's dig down 👇
Fintech companies raised €31B globally in Q3 2021, an all-time high and 2.8x compared to Q3 2020.
€85B poured into fintech companies globally so far in 2021, on track to break €100B in a year for the first time.
Megarounds have accounted for 60% of all funding in 2021, an all-time high.
There are now 393 fintech unicorns globally. 158 of these were created in 2021. That's 40% of all fintech unicorns that were created in 2021 alone.
€124B in fintech exit value in Q3 2021, up 3.3x from Q3 2020 and mainly driven by IPOs.
Fintech startups have surged to a combined value of €3.1 trillion, up 6x since 2016.
European fintech continues to compete strongly internationally. European fintechs raised half of the US’s total in Q3, compared to a third for overall VC.
Africa and Oceania are the fastest-growing markets for fintech investment, up 64x and 6.6x year on year respectively in Q3. Asia and LatAm are ramping up again too.
😮 Banks could be DeFi’s ‘best and largest clients - Jean-Marc Stenger, CEO of Societe Generale, analysis from Coinmonks on Medium. Societe Generale, one of the world’s largest investment banks, is raising a loan from decentralized platform MakerDAO, to refinance some tokenized bonds it holds.
Latest fintech deals:
Thelargest this week: Moonpay is raising $400M at a $3.4B valuation from Tiger Global and Coatue to build the crypto payment infrastructure. The startup was bootstrapped and launched just in 2018.
🇺🇸 Bolt, the online checkout startup is now valued at $4B after a $333M series D. Based on committed deals, Bolt expects 11% of U.S. shoppers to be a part of their network by the end of 2021 and one-third by the end of 2022. Discover how they did it.
🇺🇸 Cryptocurrency lending platform Celsius Network has raised $400m at a $3B valuation as it prepares to deal with increased scrutiny from US regulators towards crypto businesses. Its yield-bearing accounts have been accused to be unregistered securities from the State of Texas and New Jersey. 🇬🇧 Global Processing Services (GPS), a leading global payment technology platform, raised over $300M from Advent International and Viking Global Investors. 🇺🇸 Tala raised a $145M Series E at a valuation of $800M to scale financial services in emerging markets. The startup mainly offers microloans to consumers, small business owners and the unbanked. Discover 150+ fintech addressing the no poverty Sustainable Development Goal. 🇺🇸 TradingView, a charting platform and social network, raised $298M at a $3B valuation. It becomes the latest trading platform to join the unicorn club banking on the retail trading boom. Discover our deep dive. 🇸🇬 Atome, a leading buy now pay layer company in Asia, will receive $500M in financing from Standard Chartered as part of a 10-year multi-product strategic partnership.
Other promising fintech deals from around the globe:
🇸🇪Juni, the neobank built for e-commerce merchants, has raised a $52m Series A extension from EQT Ventures. Discover the new fintech rising stars in Sweden. 🇫🇷 SheeldMarket has raised a $10M Series A from Atomico to make cryptocurrency trading as easy for big banks and hedge funds as trading stocks or FX. These firms can place the bets and SheeldMarket acts as a regulated broker routing the orders to crypto exchanges, also unregulated.
🇬🇧 SumUp, the European rival to Paypal’s iZettle and Square, has acquired US marketing startup Fivestars for $317 million.
🇺🇸 Crypto exchange Bakkt listed on New York Stock Exchange on Monday at a $2.1B valuation, after closing combination with SPAC VPC Impact Acquisition Holdings I.
This is Dealroom's weekly fintech newsletter. You can subscribe here to get more industry-specific intelligence on the evolving world of fintech, emerging trends, and game-changing startups. Delivered on Wednesdays.
Dealroom.co, Cornelis Dirkszstraat 27-2, 1056 TP, Amsterdam, The Netherlands
