CB Insights recently published a report, State of Fintech: Investment & Sector Trends to Watch, which provides a number of insights regarding 2019 industry trends.

Global fintech funding in 2019 fell short of the record highs in 2018, with 1,913 deals raising $34.5 million in proceeds in 2019.  Quarterly fintech volumes throughout 2019 were quite consistent.  Early stage deals dropped to a 12 quarter low, as investment funds shifted their focus to mid- and late-stage deals.  Early stage deals dropped to a five-year low, while late-stage deal hit a five-year high in 2019.  There were 83 mega-rounds completed in 2019 across markets, except for Europe, and these raised an aggregate of $17.2 billion.  As of the end of 2019, there were 67 fintech unicorns valued in aggregate $244.6 billion.  There were eight new fintech unicorn births in the fourth quarter of 2019 and three in the first quarter of 2020.  In the United States, VC-backed equity funding accounted for 177 deals raising $4.6 billion.  2019 funding to US fintech companies was up 4% year over year despite a decline in the number of deals.  In the United States, there were ten mega-round investments, raising an aggregate of $2.3 billion, in the fourth quarter 2019, bringing 2019 totals to $4.6 billion.

Insurtech funding hit an eight quarter peak, with deal volumes boosted by mega-rounds.  There were five insurtech companies that became unicorns in 2019: Lemonade, Hippo, Next Insurance, WeFox, and Bright Health.  Small business fintech companies in the United States raised over $4 billion in 2019, and as of year-end 2019, there are over 140 fintech startups that are enabling small businesses.  Funding to fintech lenders declined in the fourth quarter 2019.  Wealth tech deals and funding declined in the fourth quarter 2019 to a two-year low.