A sharp drop in M&A investment drove most of the decline. During H1’20, M&A accounted for just US$4 billion of fintech investment (compared to US$85.7 billion in H2’19). 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.
Despite global uncertainty, VC investment was strong in all regions of the world, and is on track to surpass previous annual record highs should the trend continue. In H1’20, VC investment in fintech accounted for US$20 billion, including US$9.3 billion in the Americas, US$6.7 billion in ASPAC, and US$4 billion in EMEA.