Fintech Funding in 2019: Decrease in Total Funds, Number of Deals Rises

Fintech funding has seen highs and lows throughout 2019. Despite Chinese contributions drying up significantly, the rest of the world still noted very solid figures. 

Fintech Funding in 2019

A new report by Accenture Research and CG Insights paints an interesting picture. The number of funding deals throughout 2019 continues to increase. With 3,472 deals in 2019 compared to 3,251 deals in 2018, the industry still looks very healthy. It is less steep growth compared to previous years, but the overall increase is still visible.

When comparing the two halves of the year, the latter six months are prominent. Over 1,900 fintech funding deals were completed during this period. This is a steep increase compared to the 1,561 deals in the first half of 2019. 

These statistics are on par with 2018. Deals throughout the first half of the year have increased by just 35. During the second half, the situation becomes very different. A very strong growth can be noted in this segment. Over 185 additional deals were closed successfully in 2019.

Funding Amounts dip Slightly

Fintech funding hinges on two different facets. The number of deals closed successfully only tells part of the story. 

Fintoism Fintech Funding 2019

Despite an increase in overall closed deals, the funding has decreased. This is due to Ant Financial dropping off the charts, despite contributing $14 billion in 2018. 

What is remarkable is how fintech funding increases during the first half of 2019. A hefty $4.8 billion increase can be noted. With almost as many deals closed compared to 2018, that figure is a bit surprising.  

The second half of 2019 also notes strong growth. An extra $7 billion has been collected during this period. Even so, the combined growth periods are not sufficient to reach a new high in global funding for 2019. 

The difference is “just” $2 billion, but it is still significant regardless. This further confirms the importance of China in fintech funding. 

As this market is dropping off a bit, others emerge. The US, Brazil, Germany, and Sweden all note very solid growth in 2019. As such, it seems plausible to expect another increase in deals closed and funding raised throughout 2020. 

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