Biannual global analysis of investment in fintech

While overall global fintech funding fell during the first half of 2020, with US$25.6 billion of investment globally across 1,221 deals, corporate deals are driving continued strength in VC activity, according to the Pulse of Fintech H1’20, a bi-annual report on global fintech investment trends published by KPMG. Despite VC investment in fintech remaining robust, M&A activity stalls. The stalled M&A reflects both a general slowdown in deal activity and investors pressing pause on major deals in order to re-consider valuations and risk appetite given COVID-19.

2020 Key Highlights

  • Global fintech investment is well behind 2019’s total investment of $150.4 billion. At mid-year, total fintech investment globally is $25.6 billion. 
  • The Americas accounted for the largest share of total fintech investment at mid-year, with $12.9 billion investment. ASPAC saw $8.1 billion in total fintech investment during H1’20, while EMEA saw $4.6 billion in fintech investment.
  • The Americas and EMEA are currently on track to see a new record annual high of VC investment in fintech. At the end of H1’20, the Americas had attracted $9.3 billion in VC investment, Asia had attracted $6.7 billion, and EMEA $4 billion.
  • Corporate VC participating investment remained very strong, accounting for $12.2 billion in fintech investment globally. The US saw a record in VC deal value with corporate participation well over $2.4 billion in Q1 2020; the following quarter nearly matched that same amount.
  • M&A activity dropped in all regions of the world – a sharp decline due to the mega M&A activity seen during 2018 and 2019. During H1’20, global M&A deals accounted for $4 billion globally, compared to $85.7 billion in H2’19. 
  • Global investment in cyber security flew past 2019’s record high of $592.3 million, reaching $870.8 million.
     

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