Global venture-backed fintech funding reached almost $23 billion in the first quarter of 2021, a 110% quarter-over-quarter increase, according to CB Insights’ latest report and webinar, The State of Fintech. Accounting for the increased investment in fintech companies were 57 mega rounds, or financings, that raised over $100 million. Overall, there were 614 fintech deals completed.
Fintech companies continue to raise capital later in their growth stages, as evidenced by the 150% quarter-over-quarter increase in Series D rounds. According to CB Insights’ analysts, mega rounds made up the majority of the Series D rounds. Fintech exits included 11 IPOs and 67 M&A transactions, a statistic that includes SPAC mergers. While many of these fintech IPOs have been highly anticipated, performance has lagged behind the broader market, according to the report.
Driven by the proximity to the IBOR cessation date, capital markets-tech companies that have been working to replace the long used rate, raised over $8 billion in the first quarter of 2021, across 78 venture-backed deals. Also of note was the payments sector, in which companies raised over $6 billion in 114 deals. Insurtech companies funding rose 12% quarter-over-quarter to $2.3 billion, with mega rounds making up nearly half of its 92 deals in the first quarter.