Cbinsights-2021年第三季度金融科技报告（英）-2021.11-236页_4mb

State of Fintech Q3 2021 Summary

Core Content

The State of Fintech Q3 2021 report provides an in-depth analysis of the global fintech market, focusing on dealmaking, funding, and exits in private-market fintech companies. It highlights key trends and data across various regions and stages of investment.

Main Points

Global Funding Trends

• Global Funding: In Q3 2021, global fintech funding reached $31.1B, the second-highest quarter ever, marking a 147% increase YoY.
• Unicorns: 43 new fintech unicorns were born in Q3 2021, bringing the total to 206, which is twice the number from Q3 2020.
• Mega-Rounds: There were 94 mega-rounds ($100M+) in Q3 2021, the second-highest on record. These mega-rounds accounted for 64% of total funding.
• Late-Stage Deals: The median late-stage deal size more than doubled to $90M in 2021 YTD, while early-stage deals accounted for 63% of total deal activity.

US Fintech Activity

• US Funding: US fintech funding grew 121% YoY to $14.6B, representing nearly half of the global total despite making up only 39% of total deals.
• US Mega-Rounds: The US led in mega-rounds, with $62.5B in funding from these deals.
• US Deal Share: The US continued to lead in deal share across all stages in Q3 2021.

Asia Fintech Activity

• Asia Deals: Asia fintech deals reached a record 307, totaling $5.9B, marking 5 consecutive quarters of growth since Q2 2020.
• Asia Mega-Rounds: Asia's mega-rounds grew for the third consecutive quarter, surpassing Europe in funding.

Europe, LatAm, and Canada

• Europe: Europe saw significant M&A activity, contributing to a 121% increase in banking deals and 110% increase in digital lending deals.
• LatAm: LatAm's fintech deals saw a 110% increase since 2020.
• Canada: Canada contributed to the global fintech deal count and funding, with notable growth in M&A activity.

Investor Trends

• VC Dominance: Venture capital (VC) remained the largest share of fintech deals at 29%, though asset/investment management increased to 13%.
• Deal Size: The average global deal size reached $32M, a 78% increase YoY.
• Investor Distribution: Other investors accounted for 19%, private equity for 6%, incubators/accelerators for 7%, angels for 11%, and asset/investment management for 13%.

Deal Stages

• Early-Stage Deals: Early-stage deals continued to lead in deal activity, making up 63% of total deals in Q3 2021.
• Median Valuation: The median valuation of mid-stage companies increased by 144% to $478M in 2021 YTD, while late-stage median deal size more than doubled to $90M.

M&A Exits

• Global M&A Exits: There were 664 M&A exits in 2021 YTD, the highest ever, driven by digital lending and banking.
• M&A Growth: M&A activity in digital lending increased by 110% since 2020, and in banking by 121%.

Vertical Highlights

• Wealth Tech: Wealth tech reached a record 132 deals in Q3 2021, a 35% increase YoY.
• Payments: Payments continued to be a significant vertical with notable activity.
• Digital Lending: Digital lending saw a significant increase in M&A activity.
• Banking: Banking also experienced a notable increase in M&A deals.
• Insurtech: Insurtech deals and funding were highlighted, with a focus on embedded insurance.

Key Information

• Funding Growth: Global fintech funding in 2021 YTD exceeded 2020 totals by 96%.
• Top Deals:
  • Series A: Genesis Digital Assets, Wave, Scalapay, LoanPro, and Happay were among the top deals.
  • Series B: FTX, Blockstream, Mercado Bitcoin, Blockdaemon, and Remote.
  • Series C: Opay, Ramp, Bitpanda, Clearco, and FalconX.
  • Series D: DriveWealth, Uala, Fireblocks, Papaya Global, and Melio.
  • Series E+: Revolut, Chime, Kavak, Varo Bank, and Carta.
• Top Seed/Angel Deals:
  • Trading 212, Lula, Eden Network, XREX, and Royal were among the top seed/angel deals.
• Mosaic Score: Airwallex and Revolut were the top companies by Mosaic score, with 970 and 950 respectively.

Summary Table

Conclusion

The Q3 2021 fintech market showed robust growth, with global funding reaching a new high, significant unicorn births, and a strong increase in M&A activity. The US led in both funding and deal share, while Asia and Europe also saw substantial growth. Early-stage deals dominated the market, and mega-rounds continued to drive a large portion of funding. The report emphasizes the importance of tracking these trends for strategic decision-making in the fintech sector.