4 takeaways from fintech VC in Q3 2020 888011000 110888 The latest on insurtech, banking, wealth management and payments startups Alex Wilhelm 9 hours Fintech has actually been a crucial startup story in current quarters, with leading gamers in the genre raising titanic rounds at eye-popping appraisals. Consider business like Robinhood, and its legendary capital run this year on the back of big profits growth, or Chime, which also raised huge amounts while riding a tailwind provided by the savings and investing boom. The Exchange checks out start-ups , markets and money. Read it every early morning on Extra Crunch, or get The Exchange newsletter every Saturday. As you can think of, all those mega-deals have built up. According to information collected by CB Insights on the fintech space in the third quarter , 60 %of all capital raised by financial innovation start-ups originated from just 25 rounds worth$100 million or more. Contributing to the pattern of venture getting bigger– and later on as unicorns age without graduating to the public markets– the very same report kept in mind that fintech financial investment from$100 million rounds grew 24%compared to Q2, while financial investment in the space from smaller deals fell 16 %over the same timeframe. Total fintech offer volume dipped 24%compared to Q3 2019, amounting to 451 international offers. Dollars invested into fintech start-ups edged up when again to$10.631 billion, the biggest result hence far in 2020 and the second-best single-quarter tally given that mid-2018. Strangely, it was the bottom, along with the top of the market that did best. As we’ve seen, late-stage money streamed. Especially, the number of the smaller sized endeavor rounds, those marked seed or angel, grew by 20%compared to Q2 2020. Possibly the next crop of unicorns is being established? Inside the CB Insights information are a couple of trends worth digging into, including what’s going on with venture financial investment into payments-focused startups, how the IPO market may be impactinginsurtech investment, and how both wealth management startups like Robinhood and banking start-ups like Chime are faring as friends. The data is remarkable, so let’s get into the state of fintech investing today. Big trends, larger dollars We’re concentrated on 4 mega-trends today, but I wished to start point out that African fintech startups saw what seems their all-time record in offer count at 14. That was up from 11 in Q2 2020, and nine in Q1. I’m working to pay more attention to the African tech scene, and those numbers stood apart. As fintech deal count falls in the largest VC markets– North America, Europe, Asia– it is rising in Africa and Latin America, something to watch on. Via CB Insights, shared with permission. Now, into our 4 mega-trends. Payments Payments startups like Stripe and Finix get theirshare of headings, but they make up only a portion of the total volume of endeavor capital expense that their sector takes in. Per CB Insights, venture financial investment into payments startups ticked greater in Q3 2020, rising to$3.959 billion from$2.379 billion in Q22020, and$ 2.927 billion in Q3 2019. Aside from an anomalous last quarter in 2019, financial investment into payments-focused startups has actually been on a consistent incline for a long time. Why? PayPal incomes provide a partial description. As we reported the other day after the consumer payments giant reported its Q3 performance: