FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / Press Releases / Read Press Release

Print

VCs Back Off Fintech Funding in Wake of COVID-19

May 14, 2020, 09:05 AM
Filed Under: Fintech
Related: COVID-19, Fintech


The Covid-19 pandemic has rattled both public and private markets globally. VC-backed fintech startups are no exception, according to a new report from CB Insights. Across the board, fintech funding activity stalled in Q1’20 as the coronavirus outbreaks forced investors to pull back investments.

In Q1’20, VC-backed fintech funding dropped to $6.1B across 404 deals. The Covid-19 outbreak had a significant impact on fintech financing resulting in the worst Q1 since 2016 for fintech deals and the worst Q1 for funding since 2017.

With forecasts of a recession, investors pulled back on early-stage bets to focus on fortifying portfolios. Q1’20 early-stage (seed & Series A) fintech startups saw 228 deals, a 13-quarter low, and $1.1B in funding, a 9-quarter low.

Fintech funding in Asia, North America, Australia, South America, and Africa dropped quarter-over-quarter. In Q1’20, Asia saw a 69% drop in funding (to $883M) and a 23% drop in deals quarter-over-quarter. Europe was the only major region to see an increase in funding, driven by 4 mega-rounds ($100M+) including Revolut’s $500M Series D and Qonto’s $115M Series C.

Investors start to see some liquidity amid a fintech M&A spree in 2020. In addition to the Plaid and Credit Karma acquisitions, fintech unicorn SoFi acquired Galileo for $1.2B and exited unicorn LendingClub acquired Radius Bank for $185M, pending close.

Click here to read the report in its entirety.





Week's News



Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.