The global FinTech industry continues to expand through a collaborative approach led by investments, acquisitions, buyouts, and partnerships. While there are hundreds of new startups being founded every week, several FinTech startups have gone on to reach the 1-billion-dollar valuation mark over the past few years. This not only highlights the confidence investors have in the innovation led by these startups, but this also showcases the consolidation of a new industry.
As per MEDICI’s analysis, more than 50 FinTechs are now unicorns as of this date. While a major chunk of these unicorns comes from the lending segment which has contributed 24.1% to this unicorn club, segments such as cybersecurity, InsurTech, Neobank, B2B FinTech, etc., are also major contributors to the FinTech unicorn club.
The past couple of years has seen a greatly enhanced activity in the space of FinTech VC funding, as a result of which more than half of the FinTech unicorns today reached the 1-billion-dollar mark in the past two years. The year 2018 so far has seen more than 17 FinTech unicorns so far. Some of the major ones include – Revolut, Atom Bank, PolicyBazaar, Monzo, TradeShift, Tiger Brokers, Root Insurance, etc.
The two major FinTech hubs – the US and China – contribute more than 82% to the FinTech unicorn club. The US leads the club with more than 48% contribution to the FinTech unicorn club in terms of the number of unicorns. China comes a close second with more than 34% in contributions.