May 20, 2019
In Q1 2019, FinTechs around the world raised $9.15 billion in investments from 445 deals with 5.78% YoY growth in total funding raised compared to Q1 2018. From 429 deals, FinTech startups were able to raise $8.65 billion in funding in Q1 2018. In terms of the number of deals, there was a 4.66% YoY growth in Q1 2019 compared to Q1 2018. It’s interesting to note that the funding for FinTechs in Q1 2019 was spread out across the whole gamut of segments instead of being limited to just a few of the more popular ones.
The Americas dominated the funding chart with $5.06 billion in funding raised from 219 deals, which is 55.30% of the global FinTech funding in Q1 2019. Europe came second with $2.39 billion in funding from 106 deals. In Asia, FinTech startups managed to raise $1.52 billion from 99 deals.
InsurTech startups led the funding race with $1.98 billion in funding from 68 deals. Funding raised in InsurTech accounted for 21.64% of the global FinTech funding in Q1 2019. There were some large deals in this segment, such as Clover Health (raised $500 million) and States Title (raised $240 million). InsurTech startups based out of the Americas have collectively contributed to 60.76% ($1.20 billion) of global funding in the InsurTech segment.
The Lending segment comes second in the funding race with $1.27 billion raised from 70 deals. Some of the large deals in the lending segment were DMI Finance (raised $230 million), which is based out of India, and Uplift (raised 123 million), which is based out of the United States of America.
The Neobanks/Digital Banks segment was a close third as it went neck-and-neck with the Payments segment. Neobanks secured $1.216 billion in funding from 20 deals, whereas the Payments segment managed to raise $1.214 billion from 42 deals. OakNorth (raised $440 million) and N26 (raised $300 million) are some of the big deals in the Neobanks/Digital Banks segment. Neobanks from Europe contributed to 75.06% ($913.37 million) of global funding raised in the segment.
In the Payments segment, Marqeta (raised 250 million) and Toast (raised 250 million) are the notable startups in the segment to have big deals. The recent funding raised the valuation of Toast to $2.7 billion. Payment startups from the Americas have contributed 63.63% ($772.61 million) to global funding raised in the Payments segment.
Outside of the top four segments, WealthTech ($739.17 million from 54 deals), B2B FinTech ($440.19 million from 28 deals), and Capital MarketTech ($420.72 from 18 deals) were some of the well-funded FinTech segments in Q1 2019.