[eMarketer] Global fintech funding hits historic levels
Fintechs raised $30.79 billion across 657 deals, a staggering 30% rise on the first quarter. The total funding for 2021 already exceeds all funding raised during the entirety of 2020, according to CB Insights.
Fintechs dominated global startup funding in all sectors: One dollar out of every $5 raised in the second quarter went to a fintech.
88 fintechs raised more than $100 million each, which accounted for 70% of total funding. Investors target startups that are disrupting fast-growing, multibillion-dollar markets, like the explosive growth of ecommerce transactions and trading.
eMarketer says that the proliferation of funds is due to investors’ view that fintech startups have significant potential to rapidly appreciate in value: Fintech unicorns now account for close to one in five of the world’s unicorns. And when they eventually go public, their private backers could get sky-high returns.