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    State of Fintech

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    Key takeaways

     
    Fintech is taking the financial industry by storm. Our report provides an overview of the current state of the fintech landscape including a view into investments by geography, fintech sectors, exits and revenue as well as a spotlight on payment facilitation. Investments are up, crypto and blockchain are on the rise and corporate VCs want in on the growth. Here are three featured statistics from the report:

    01

    Fintech opportunities on the rise

    Venture capital investment in fintech companies reached a new high in 2021, surpassing the previous record set in 2018.

    02

    Fintech 3.0 emerging

    Cryptocurrency and blockchain accelerates to become the fastest growing fintech sector at both early and late stage due to investors betting that new technologies will usher in a future decentralized financial system.

    03

    Fintech excites Corporate VCs

    The number of CVC fintech deals is on track to increase 64% over 2020 with an aggregate deal size projected to increase 158%.

    Report highlights

     
    The Covid-19 pandemic has accelerated the digitalization of finance forward with a record number of new fintech deals across the globe. New areas of innovation have continued to emerge across fintech sectors including payment facilitation. Late-stage deals dominated the venture landscape, minting a record number of “dragons”.

    A record year for fintech venture deals

     

    The consumer and business shift toward digital brought about by the COVID-19 pandemic has buoyed interest in fintech startups. In 2021, fintech companies were 14% of all VC deals but accounted for 18% of investment.

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    Global investment sets new records for deals, dollars and valuations

     

    European and American fintech companies raised a combined $70.0 billion in 2021, up from $29.3 billion in 2020.

    Emerging opportunities in Fintech

     

    An increase in digital users has broadened the market, leading to a surge in fintech company formations. Since Q2 2020, first financings for fintech startups have jumped 53.6% reversing the pre-pandemic downtrend.

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    More companies across verticals integrating payment facilitation models

     

    With new payment facilitation solutions continuing to remove hurdles for merchants looking to process digital payments, revenue for PayFacs has accelerated since the start of the pandemic with no signs of slowing down.

    Fintech dominates the IPO market this year with 12 companies going public

     

    With positive investor sentiment for high-growth fintech assets combined with a willingness to pay a premium, fintech companies accounted for 5 of the 10 largest US VC-backed tech IPOs in 2021.

    Charts for website - US VC-Backed Fintech IPOs.jpg

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    Written and researched by SVB experts

     

    Our deep relationships with top entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.

    Down Arrow
    Dan Allred Headshot
    Dan Allred
    Senior Market Manager
    Dan leads SVB’s National Fintech and Payments Strategy teams.
    Sophie McNaught Headshot
    Sophie McNaught
    Director, VCRM
    Sophie McNaught is a Director for SVB’s Corporate Relationship Management team. Sophie is responsible for SVB’s relationships with the VC, Corporate Development & Innovation divisions.
    Ilana Fass Headshot
    Ilana Fass
    Vice President
    Ilana Fass is a vice president with Silicon Valley Bank’s Fintech team, where she partners closely with entrepreneurs, investors and influencers across the national fintech ecosystem.

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