Global investment in financial technology (fintech) ventures dropped in the first half of 2019, according to Accenture analysis of data from CB Insights.
The value of fintech investment deals declined 29 percent to $22 billion in the six months ended June 30.
The drop was due mostly to the lack of a giant deal like Ant Financial’s $14 billion fundraising in May 2018.
The value of deals in the U.S. rose 60 percent to $12.7 billion, though the number of transactions was unchanged from the first half of 2018 (564 vs. 563), signaling a trend of larger deals in the world’s biggest and most active fintech market.
The largest portion of funding, 29 percent, went to lending startups, followed by those in payments, with 25 percent of the total. The largest deal was the $1 billion that consumer finance fintech Figure Technologies Inc secured from a credit facility in May.
Fintech investment in the U.K. nearly doubled, to approximately $2.6 billion, and the number of deals jumped 25 percent to 263.
For example, Monzo raised $144 million in June; Starling Bank raised $211 million from two separate transactions in February; money-transfer startup TransferWise closed $292 million deal in May; and WorldRemit raised $175 million in June.
Investments in German fintechs more than doubled to $829 million, led by the $300 million that challenger bank N26 raised in January and the $125 million investment in insurtech Wefox Group in March.
Fundraising in Sweden more than quadrupled to $573 million.
Fintechs in France raised $423 million in the first half of 2019, 48 percent more than a year earlier.
There were also large fundraising gains in Asia Pacific, with the value of deals in Singapore nearly quadrupling to $453 million, and the value of deals in Australia more than tripling, to $401 million.
Investments into payments startups and those in lending took the bulk of global fintech fundraising, accounting for 28 percent and 25 percent of the total, respectively, while insurtechs raked in 14 percent.
The number of fintech deals globally rose about 2 percent to 1,561. While the number of deals was flat in the U.S. and rose sharply in the U.K., China and India experienced volume declines of 49 percent and 21 percent, respectively.
Singapore and Japan saw the number of deals increasing 55 percent and 33 percent, respectively.
The number of fintech deals doubled in Sweden to 40, and increased 27 percent in Germany to 56, according to Accenture.