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If you just checked out the headlines, you ‘d be excused for believing that equity capital financial investment into financial-technology business is at an all-time high.
Huge offers this year like Plaid’s$5.3 billion dollar exit to Visa, Galileo’s$ 1.2 billion sale to SoFi, together with CreditKarma’s $ 7.1 billion deal with Intuit made for a neat start to 2020. However despite the later-stages of fintech-focused startups seeing healthy quantities of liquidity, aggregate equity capital activity in the historically well-funded sector was light in the first quarter of 2020.
According to a new Q1 2020 report covering endeavor information from CB Insights, VC dollars purchased the sector was up to levels not seen because 2017, while venture offer volume in fintech fell to 2016 levels. There are any number of factors for this pullback that you can fill in, including COVID-19 and its resulting economic impacts. What’s even more intriguing is where the money and deals did and did not go inside of the different fintech classifications. Fintech has ended up being so complicated as a start-up grouping, it’s almost as scattered as going over “SaaS” companies as an associate. Of course, fintech is a product focus while SaaS is a company model (there are fintechs that offer SaaS, to be clear), but the basic point holds.
Let’s dig into the top-line information to better understand the fintech financing landscape in Q1 (TechCrunch recently spoke with VCs on their expectations for the sector today and in the future). After the top-level things, we’ll dig into a few notes concerning sub-sectors of specific interest, including wealth management and insurtech.
Fintech’s Q1 endeavor scorecard
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.