Fintech Development
2017
Fintech companies around the world have raised a record $39.57 billion of investment from venture capital firms in 2018, an increase of 120% from 2017. According to a study by data provider CB Insights this total funding was raised across 1,707 deals, up from 1,480 in 2017.
2018
During 2018, there was a total of 52 investment rounds with figures above $100 million – so called mega-rounds – making $24.88 billion combined. The data reveals that 35% of the total investment came from a $14 billion investment in Ant Financial, the payment affiliate of Chinese e-commerce giant Alibaba. In the last three months of the year, five companies became fintech “unicorns”, reaching a valuation of over $1 billion, including credit card provider Brex, digital bank Monzo, data aggregator Plaid, as well as DevotedHealth and Toss.
2019
For 2019, this doesn’t seem to be slowing down, with N26 and Confluent having joined the ranks of unicorns.
Fintechs are also appearing in many places beyond the “core markets”, that being China, US and UK. CB Insights says 39% of all 2018 investments happened outside of these three geographies.
Asia saw the biggest boost in deals, growing 38% year-on-year and a record level of funding raising $22.65 billion across 516 deals. The research expects Asia to surpass the US this year.
In the US, fintechs raised $11.89 billion through 659 investments, while the number of deals dropped in Europe, but funding reached a record $3.53 billion. The report also highlights South America, as that region saw funding top $540 million across 55 deals, both a new annual record. Despite geopolitical conflicts that kept investors away from the region, Brazil-based NuBank, became South America’s first unicorn and closed out 2018 with a $90 million investment from Tencent.
2023
Strikingly, in the first half of 2023, fintech investment has been experiencing 49% year on year decline to $23 billions. Compared to 2022, less funding rounds have been reported with 1,178 investment deals, 64% lower than 2022. Similar circumstance also occured in Asia Pacific (APAC) with plunge to $5.1 billions. How about Indonesia?
Worry not, the industry is still projected to grow 20% annually until 2025. Moreover, a lot of gaps are waiting to be bridged by inclusive service from fintech within MSMEs, underbank, and financially underserved populations.
Bright Prospects of Green Fintech
An intriguing fact is the shifting trend towards green fintech. A report by KPMG stated that, investors have grown robust interest in funding green fintech, as proven by increase from $1.5 to $1.7 billions in the first six months of 2023. An example of green financial technology enterprise is Danamart with securities crowdfunding for SMEs and startups. Register and raise up to IDR 10 billions extra capital or up to 18% interest per annum!
By: Mardiana
Danamart is the first online investment platform in Indonesia with a securities crowdfunding scheme that focuses on the ESG concept and has obtained permission from OJK (Financial Services Authority). We are fully committed to supporting the global movement in line with the Sustainable Development Goals (SDGs). Through the offering of shares and bonds, we provide capital support for SMEs and startups. Join now for a secure, trusted, and positively impactful investment at https://danamart.id!
