- Fintech is the most promising investment sector of this year.
- High-profile companies that focus on technology are increasingly attracting large sums of money.
- In 2018, the number of companies that are digital banks or crypto exchanges grew.
Fintech has been ranked the top investment field right now. It is likely to continue growing. It is due to the increasing number of fintech centers bringing investment. This is in addition to the increasing deal size and value.
Globally, Fintech funding has reached a new record in 2021. This has led to an increase in the amount of money invested. In fact, the total amount invested in 2021 nearly doubled within the first quarter of 2021.
Likewise, fintech startups’ growth expects an increasing number of firms to raise large later-stage funding rounds as investors look to lock in their bets.
During this time, the number and size of digital banks as well as cryptocurrency exchanges has risen by mega-rounds.
In the first quarter of 2018, Stripe, a digital payments company, raised $600million in new financing at $95billion in March. In July, the $18 billion in funding for crypto exchange FTX, a Hong Kong-based cryptocurrency exchange, raised $900 million. In August, Chime was valued at $25 billion as part of $750 million in a fresh funding round.
Furthermore, tech-driven firms are now attracting hefty dollars, catching incumbents’ attention as potential acquisition targets. They are also creating viable alternatives to existing ones, which is attracting regulators’ attention.
The total amount of dollars spent in the first three quarters of 2021 was $39.2 Billion, which is more than $20.4 Billion in 2020.
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