According to Accenture analysis of data from CB Insights, a global venture-finance data and analytics company, the investments were led by strong gains in China and Australia and an increase in the UK that helped more than offset a drop in fundraising in the US and some European markets.
The value of deals in the US, the world’s largest fintech market, fell 9.1%, to USD 11.6 billion, with the number of transactions surging 73.5% to 1,013 as hundreds of startups signed up for the government’s Paycheck Protection Program (PPP) to help finance their day-to-day activities.
In the UK, fintech investments climbed 3.8%, to USD 2.7 billion, led by a 5.3% gain in funding to payments startups to USD 1.1 billion and a 66% jump in insurtech deals to USD 212 million. Fintech investments in China nearly tripled to USD 2.3 billion in the first half of 2020, led by the USD 1.3 billion Chinese wealth management platform Lu.com raised in a syndicated loan in April 2020 from a group of banks.
There were also large fundraising gains elsewhere in Asia Pacific. Investments in Australia almost tripled to USD 1.2 billion, making the country the world’s fourth largest fintech market, while fundraising in Japan quadrupled to USD 268 million and jumped 65% in South Korea to USD 162 million.
Investments into payments startups and lending startups took the bulk of global fintech fundraising, accounting for 32% and 20% of the total, respectively, while insurtechs raked in 11%.
Below are some data from the Accenture analysis:
World’s five biggest fintech markets in the first half of 2020 (vs H1 2019 comparison):
Top five fintech deals in H1 2020:
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