October 28, 2019
In Q3 2019, FinTechs around the world raised $12.46 billion in investments from 591 deals with 9.8% QoQ growth in total funding raised compared to Q2 2019. From 476 deals, FinTech startups were able to raise $11.35 billion in funding in Q2 2019. In terms of the number of deals, there was a growth of 24.1% QoQ in Q3 2019 compared to Q2 2019. It's interesting to note that the funding for FinTechs in Q3 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 $7.24 billion in funding raised from 240 deals, which is 58.10% of the global FinTech funding in Q3 2019. Europe came in at a distant second with $2.69 billion in funding from 176 deals. In Asia, FinTech startups managed to raise $1.7 billion from 146 deals.
Lending startups led the funding race with $2.90 billion in funding from 101 deals. Funding raised in Lending accounted for 23.3% of the global FinTech funding in Q3 2019. There were some large deals in this segment, such as Castlehaven Finance (raised $280.64 million) and LendInvest (raised $248.8 million). Lending startups based out of the Americas have collectively contributed to 36.6% ($1.06 billion) of global funding in the Lending segment.
The Neobanks/Digital Banks segment is second in the funding race, with $1.74 billion raised from 21 deals. Some of the large deals in the Neobanks/Digital Banks segment were the Sweden-based Klarna (raised $460 million), and the Brazil-based Nubank (raised 400 million).
The WealthTech segment came in at a close third. The WealthTech segment managed to raise $1.57 billion from 100 deals. Robinhood (raised 323 million) and Foxberry (raised 221.4 million) are the notable startups in the segment with big deals. WealthTech startups from the Americas have contributed 52.4% ($825.6 million) to global funding raised in the WealthTech segment
In B2B FinTech, C2FO (raised 200 million) and Gusto (raised 200 million) are the notable startups in the segment with big deals. The recent funding round raised the valuation of Gusto to $3.8 billion. B2B FinTech startups from the Americas have contributed 63.3% ($713.7 million) to global funding raised in the B2B FinTech segment.
Outside of the top four segments, InsurTech ($965.3 million from 57 deals), RegTech ($774.7 million from 19 deals), and Payments ($724.1 million from 44 deals) were some of the well-funded FinTech segments in Q3 2019.
Some of the other startups that secured good amounts of funding in Q3 2019 were Judo Bank ($400 million), Verafin ($389 million), Compass ($370 million), and Stripe ($250 million).