Fintech report Q1'2019:
Global fintech funding hit
$6.3B in the first quarter
of 2019

Q1’19 VC-backed fintech funding dropped but deals remain strong: In the first 3 months of 2019, VC-backed fintech companies raised $6.3B across 445 deals globally. Deals were up 4% quarter-over-quarter (QOQ) while funding dipped 13%.

Asia saw funding fall as a result of tighter regulatory oversight in China: Fintech funding in Asia fell below $1B for the first time in five quarters. Funding dropped to $875M, a 67% drop QOQ. Deals grew to 127 supported by strong growth in India, which saw 29 deals.

Late-stage deal share grew to a 5-quarter high as investors continued to concentrate bets in perceived winners: Global Series D and Series E+ fintech deals grew to 8% in Q1’19. US early-stage deal share was flat QOQ as investors continued to concentrate their bets in established fintech unicorns.

There are 41 VC-backed fintech unicorns worth a combined $154.1B: Q1’19 saw three new unicorn births (N26, Chime, and Airwallex) and three in the first month of Q2’19 (, Liquid, and Lemonade). The cohort’s total valuation in 2019 continues to grow as a result of continued mega- rounds to existing unicorns, including Klarna and Stripe, among others.

India challenges China for the top Asian fintech market: India was the top Asian market for VC-backed fintech funding in Q1’19 with $286M in funding, narrowly surpassing China. China saw funding fall to $192M, a 89% drop QOQ. India and China both saw 29 deals.

In Q1’19, Europe beat Asia in funding and the US remained the top market for deals with 170 investments worth $3.3B: Europe saw funding grow to $1.7B, surpassing Asia which saw $875M in funding in Q1’19. Asia saw 127 deals, beating out Europe.

Q1’19 saw record M&A deals between payment incumbents, more fintech mega-rounds to support staying private, and lackluster IPO activity: The quarter saw 2 record-breaking acquisitions between payment incumbents: Fiserv acquired First Data for $41B in January and FIS acquired Worldpay for $43B in March. Q1’19 saw 13 $100M+ financing deals to VC-backed fintech companies. Q1’19 only had 1 unicorn IPO with Tiger Brokers.