Global Fintech Deals Slow Down in 2019

According to a new report, global fintech firms saw 838 deals worth $15.1 billion in the first half of 2019. If this trend continues through the year, the number and value of fintech deals will be lower than in 2018.

Global fintech deals increased steadily from 1,206 in 2015 to a peak of 1,895 in 2018. The 838 deals in the first half of 2019 is roughly 44 percent of last year’s total number of deals. The value of deals have also increased, albeit with more deviation, from $16.6 billion in 2015 to $40.5 billion in 2018. The $15.1 billion so far in 2019 represents only 37 percent of last year’s total.

The report also showed that venture capital-backed fintech deals reached only 367 in the second quarter of 2019, the lowest total since the fourth quarter of 2016. Despite the slowdown in the number of deals, funding to venture capital-backed fintech firms reached $8.3 billion in the second quarter of 2019, the highest amount on record. 

In addition, North America continues to lead in fintech funding. In the second quarter of 2019, venture capitalists in North America provided $5 billion to fintech firms. This was followed by investors in Europe at $1.6 billion and Asia at $1.1 billion. 

The report was composed by CB Insights, a tech market intelligence platform that analyzes millions of data points on fintech firms. Their Global Fintech Report is a quarterly publication.