Arabian Post Staff
The strong investment activity in the fintech sector continued in 2020, despite the global slowdown in venture capital deals caused by the COVID-19. According to data presented by AksjeBloggen.com, the cumulative value of funds fintech startups raised over time hit $121.7bn in February, a $20bn increase in a year.
In 2018, fintech startups raised $31.3bn with the cumulative funding value reaching $71.3bn that year, revealed the Crunchbase data. By the end of 2019, this figure jumped to $95.8bn, a $24.5bn increase in a year.
Statistics show that 2020 witnessed $20.3bn of investments into the fintech sector, despite a significant drop in global venture capital funding caused by the pandemic. The cumulative value of investments hit $116.1bn last year, and this figure rose by another $5.6bn in the last two months.
Statistics show that Asian fintechs lead in the total value of investments, with $50.3bn in funding rounds so far. The North American companies raised $47.8bn in funding, ranking as the second-leading region globally. European fintech startups follow with $18.2bn worth of investments.
Although the COVID-19 may have influenced the investment activity in the fintech sector, the pandemic also triggered a surge in the use of fintech solutions, creating a huge space for new companies.
The BCG data revealed the number of fintech startups worldwide tripled in the last two years, rising from over 12,200 in 2019 to 26,000 in 2021.
As of February 2021, there were 10,605 financial technology startups in North America as the leading region, up from 5,800 in 2019.
However, statistics show Europe, the Middle East, and Africa have witnessed the most significant increase in the number of fintech startups. In 2019, almost 3,600 companies were operating in this sector. Since then, the number of fintech startups in the EMEA region surged by 160% to more than 9,300.
Asia and the Pacific ranked third with more than 6,100 fintech startups as of February, up from 2,800 in 2019.