2023-11-01-CBInsights-金融科技状况2023年第三季度报告_191页_4mb

State of Fintech Q3 2023 Summary

Core Content

The State of Fintech Q3 2023 report provides an in-depth analysis of global fintech dealmaking, funding, and exits in the third quarter of 2023. It highlights the performance of various fintech sectors and regions, including the US, Asia, and Latin America, and outlines the trends in investment and exit activities.

Main Points

• Global Fintech Funding: In Q3 2023, global fintech funding reached $7.4 billion, a 3% decrease compared to the previous quarter. This marks the end of a period of sharp declines since the end of 2021. The deal count also fell by 18% QoQ.

• US Fintech Funding: The US accounted for 47% of global fintech funding, totaling $3.5 billion, a 5% drop from the previous quarter. Despite this, the US remained the leading region in terms of both funding and deal volume.

• Asia Fintech Funding: Asia-based fintechs saw a significant 82% increase in funding, reaching $2 billion, with digital lending being the most prominent sector. The majority of Asia’s top 10 deals went to digital lending companies.

• New Unicorns: Q3 2023 saw 3 new fintech unicorns, bringing the total to 312. These included:

  • BitGo ($1.8 billion valuation, US)
  • Micro Connect ($1.7 billion valuation, Hong Kong)
  • Kin ($1 billion valuation, US)

• Mega-round Funding: Mega-rounds accounted for $2.4 billion in Q3 2023, a 50% increase from the previous quarter. Asia surpassed the US in mega-round funding, securing $1.1 billion across 5 deals, while the US raised $1 billion across 7 mega-rounds.

• Digital Lending Growth: Digital lending experienced the largest funding increase, with a 70% QoQ rise. The sector was followed by insurtech with a 22% increase. India-based Perfios raised the largest digital lending round of $229 million.

• Exit Trends: M&A exits declined by 6% QoQ, while IPOs and SPACs increased slightly. The US led in M&A exits, with Burgiss acquired by MSCI for $1.1 billion being the largest deal. 4Paradigm in China was the top IPO in Q3 2023 with a valuation of $3.8 billion.

• Investors: The top investors in Q3 2023 included 500 Global, QED Investors, and Union Square Ventures, all VC firms. CVCs such as Binance Labs and Citi Ventures also played a significant role in funding fintech companies.

Key Information

Funding by Sector

• Digital Lending: Largest funding increase at 70% QoQ, with $2.4 billion in mega-rounds.
• Insurtech: Second-largest increase at 22% QoQ.
• Wealth Tech: $1.7 billion in funding.
• Payments: $3.5 billion in funding, with Ramp and PayJoy leading the equity deals.
• Banking: $0.3 billion in funding, with Europe leading in deal share.

Funding by Region

• US: $3.5 billion in funding, 47% of global total.
• Asia: $2 billion in funding, 27% of global total.
• LatAm: $0.7 billion in funding, with median deal size growth.

Deal Share by Stage

• Early-stage: Dominated the deal share in 2023 so far.
• Median Deal Size: Fell across all investor categories.
• VCs: Led in deal share, with 500 Global and QED Investors being the top VC firms.

Top Deals by Series

• Series D: Ramp ($300M), Perfios ($229M), and Teamshares ($124M) were the top deals.
• Series E+: AlphaSense ($150M), Veritas Finance ($146M), and Gojo & Company ($100M) were among the top deals.

Top Unicorns

• BitGo: $1.8 billion valuation, US.
• Micro Connect: $1.7 billion valuation, Hong Kong.
• Kin: $1 billion valuation, US.

Top M&A Exits

• Burgiss ($1.1B) acquired by MSCI.
• Silverfin ($318M) acquired by Visma.
• MDsave ($150M) acquired by Tendo.

Top IPOs

• 4Paradigm ($3.8B) in China.
• CAB Payments ($927M) in the UK.
• Yondervision ($87M) in China.

Top SPACs

• Better ($7.7B) via Aurora Acquisition.
• Roadzen ($965M) via Vahanna Tech Edge Acquisition I Corp.

Conclusion

Q3 2023 saw a stabilization in global fintech funding after a prolonged decline since 2021, with the US and Asia leading in different aspects of the market. Digital lending emerged as the top sector in terms of funding growth, while the US remained the dominant region in deal share and unicorn births. M&A and IPO activity showed some recovery, and VC and CVC investment continued to play a crucial role in the fintech ecosystem.