CBINSIGHTS-2021年第一季度金融科技投资趋势报告（英文）-2021.5-80页_6mb

State Of Fintech Q1'21 Report Summary

Core Content

The State of Fintech Q1'21 Report provides an in-depth analysis of the fintech industry's investment and sector trends during the first quarter of 2021. It highlights the record-breaking funding, significant deal activity, and the role of SPACs in fintech exits.

Key Trends and Findings

Overall Fintech Trends

• Record Funding: Q1'21 was the largest funding quarter on record, with $22.8B raised by VC-backed fintech companies across 614 deals.
• Year-over-Year Growth: Funding grew by 15% YoY, while deal activity increased by 98% YoY.
• Global Growth: Every continent except Africa saw QoQ growth in deal activity.
• Mega-Rounds Dominance: 57 mega-rounds (over $100M) were recorded, accounting for 69% of total funding. This nearly doubled the average deal size compared to Q4'20.
• Exit Activity: Q1'21 saw a record number of exits, including 11 IPOs and 67 M&A deals, with many completed via SPAC transactions.

Sector Trends

Payments

• Funding Growth: Payments companies raised over $6B in Q1'21, a 188% QoQ increase.
• Deal Activity: Increased by 50% to 114 deals.
• Mega-Rounds: 18 mega-rounds, accounting for over 75% of total funding.
• Key Players: Klarna, checkout.com, Rapyd, and PPRO saw significant funding, with Klarna raising $1B in March 2021.

Insurance

• Deal Activity Decline: Insurtech deal activity fell by 5% QoQ.
• Funding Growth: Increased by 12% QoQ.
• Mega-Rounds: Represented less than 50% of total funding, making it the only major fintech vertical where this was the case.

Banking

• Funding Growth: Increased by 25% QoQ.
• Deal Activity Decline: Declined by 12% QoQ, marking the first decline since Q4'19.
• Key Players: Nubank (Brazil) and Robinhood raised significant amounts, with Nubank securing $400M in January 2021.

Capital Markets

• Funding Growth: Increased by 250% QoQ to $8B.
• Deal Activity Decline: Declined by 4% QoQ.
• Mega-Rounds: Over 80% of total funding came from mega-rounds.

Digital Lending

• Funding and Deal Growth: Both increased significantly, with funding reaching $4B and deal activity reaching 102.
• Growth Rates: 203% in funding and 96% in deal activity.
• Mega-Rounds: 8 mega-rounds, the highest since Q2'19.

SMB

• Funding Growth: Increased by 154% to $3.4B.
• Deal Activity Decline: Declined by 21‰, continuing a trend of falling deal activity.

Wealth Management

• Funding Rebound: Grew by 560% QoQ to $5.4B.
• Deal Activity Growth: Increased by 27%.
• Mega-Rounds: 8 mega-rounds, which accounted for 83% of total funding.

Real Estate

• Funding Growth: Increased by 29% to $2.4B.
• Deal Activity Decline: Declined by 9% QoQ.

Major Fintech Deals in Q1'21

Top Fintech VCs in Q1'20 – Q1'21

Fintech Unicorns

• Total Unicorns: 94
• Aggregate Valuation: $377B

Fintech M&A and IPO Activity

• IPOs: 11 fintech companies went public, including Affirm, Oscar Health, and Bakkt.
• SPAC Deals: Many exits were via SPAC transactions, with notable deals like SoFi ($8.65B), MoneyLion ($2.4B), Bakkt ($2.1B), and eToro ($10.4B).
• Performance: Some fintech IPOs underperformed compared to the broader market.

Digital Asset and Crypto Trends

• Mainstream Adoption: Digital asset custody and investment gained traction, with major institutions like J.P. Morgan and BNY Mellon entering the space.
• Key Initiatives:
  • J.P. Morgan: Launched a cryptocurrency exposure basket.
  • BNY Mellon: Participated in Fireblocks' $133M Series C.
  • BBVA: Launched digital asset custody and trading in Switzerland.
  • GrayScale: Launched new crypto investment products.
  • Taxbit: Secured $100M Series A for automated crypto tax solutions.
  • Avanti: Raised $37M Series A to build a digital asset bank.

Emerging Market Fintechs

• Cross-Border Payments: Companies like KoiPayment and Dash are facilitating cross-border transactions in emerging markets.
• Employee Solutions: Early-stage payment players are offering credit cards, salary advances, and transit solutions for employees.

Conclusion

Q1'21 marked a significant milestone for the fintech industry, characterized by record funding, a surge in M&A and IPO activity, and the mainstream adoption of digital assets. Payments and wealth management sectors led the growth, while insurance and capital markets showed mixed performance. The global expansion of fintech, particularly in Europe and Latin America, highlights the industry's resilience and innovation.