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Visa Acquires Plaid: A Review Of The Financial Data & Infrastructure Market
The Future Of Payments: B2B Payments Are Moving Past Checks
Fintech Business Model Spotlight: Revolut
The Future Of Payments: Bill Payments Are Going Mobile
Fintech Business Model Spotlight: Chime
What’s Driving The Global Payments Market? Big Tech, M&A, And More
How PayPal Is Using M&A To Expand Beyond Payments Into E-Commerce And Loyalty
Wealth Tech Investment Landscape
Where The Biggest Payments Players Are Investing In Private Markets
Fintech Business Model Spotlight: SoFi
Fintech Business Model Spotlight: Next Insurance
This Week In Insurance Tech: Work From Home Brings New Risks, MakuSafe Releases New Wearable
Device, FlipKart Offers Life Insurance
Fintech Business Model Spotlight: Ripple
Fintech Business Model Spotlight: Alan Insurance
The Latin America Digital Banking Investment Landscape
Summary of findings
As Covid-19 has destabilized private capital markets, Q1’20 was one of the China had its worst quarter for fintech since 2015, as the country shut
worst quarters in 2 years for VC-backed fintech: The economic shocks down to fight the coronavirus outbreak: China saw just 29 deals worth
stemming from the outbreak of the coronavirus have decreased investor $175M in Q1’20. As the first country to be affected by coronavirus, China’s
appetite for fintech. Q1’20 VC-backed fintech activity dropped to $6.1B pullback could be a gauge of what’s ahead for fintech as the virus spreads
across 404 deals, the worst Q1 since 2016 for fintech deals and the worst to other regions.
Q1 for funding since 2017.
Fintech funding in Asia, North America, Australia, South America, and
Companies brace for the long-term impacts of Covid-19: From insurtech Africa dropped quarter-over-quarter: In Q1’20, Asia saw a 69% drop in
and lending to payments and infrastructure, fintech and big tech players funding (to $883M) and a 23% drop in deals quarter-over-quarter. The
across every vertical are accelerating product development to prepare for pullback started in China but quickly spread to other regions.
the downstream impacts of the coronavirus and a recession.
Q1’20 was slow for unicorn births, but active for unicorn exits: The quarter
Investors pulled back on early-stage bets to focus on fortifying portfolios saw just 3 unicorn births: HighRadius, Pine Labs, and Flywire. However,
for a forecasted recession: Q1’20 early-stage (seed & Series A) fintech unicorn investors started to see big exits, with Visa’s $5.3B acquisition of
startups saw 228 deals, a 13-quarter low, and $1.1B of funding, a 9-quarter Plaid and Intuit’s $7.1B acquisition of Credit Karma, pending close. Currently
low. Investors shifted focus from making new bets to preparing portfolios there are 67 fintech unicorns worth a combined $253B.
for the projected recession.
Investors start to see some liquidity amid a fintech M&A spree in 2020: In
Mega-rounds ($100M+) stalled globally: Q1’20 saw 13 mega-rounds worth addition to the Plaid and Credit Karma acquisitions, fintech unicorn SoFi
$2.6B, the lowest deal count since Q2’18 and lowest combined funding since acquired Galileo for $1.2B, exited unicorn LendingClub acquired Radius Bank
Q3’18. for $185M, and Morgan Stanley acquired E-Trade for $13B, pending close.

Note: This report focuses on equity rounds to VC-backed fintech companies. This report does not cover
companies funded solely by angels, private equity firms, or any debt, secondary, or line of6credit
transactions. All data is sourced from CB Insights. Unicorns companies are valued at $1B+.
Contents
8 Q1’20 Financing Trends 67 Appendix
Quarterly Deals & Dollars Geographic Trends
Regional Trends Most Active Fintech Investors Q4’19 – Q1’20
Fintech Unicorns Top Fintech Deals Q1’20
Methodology
21 Q1’20 Fintech Sector Trends
SMB
Capital Markets
Regtech
Insurtech
Wealth Management
Payments
Lending
7
 WHAT FINTECH COVERS

Payments processing, card developers, Companies selling insurance digitally or providing

and subscription billing software tools data analytics and software for (re)insurers

Tools to manage bills and track Sales and trading, analysis, and
personal and/or credit accounts infrastructure tools for financial institutions
PAYMENTS/ INSURANCE
BILLING
PERSONAL CAPITAL
FINANCE MARKETS
Audit, risk, and regulatory Investment and wealth management
compliance software platforms and analytics tools
WEALTH
REGTECH MANAGEMENT

Companies leveraging blockchain MONEY International money transfer

technologies for financial services BLOCKCHAIN/ TRANSFER/ and tracking software
CRYPTO REMITTANCES

MORTGAGE/
LENDING REAL ESTATE
Marketplace lending and alternative Mortgage lending, digitization,
underwriting platforms and financing platforms

8
 Q1’20
Financing
Trends

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#AhaCBI
Q1’20 global fintech investment dropped as the
coronavirus spread
Annual global VC-backed fintech deals and financing, 2016 – Q1’20 ($B)

2,110 2,033

1,787

1,460

404

$19.9 $19.0 $41.4 $35.0 $6.1

2016 2017 2018 2019 2020 YTD

Amount ($B) Deals
10
 Q1’20 fintech funding dropped to 2017 levels as
investors pulled back amid the pandemic
Quarterly global VC-backed fintech financing, Q1’16 – Q1’20 ($M)

$14,000
$8,531 $4,500

$3,035

$3,350
$2,750

$20,758
$5,603

$6,511

$7,873

$7,140

$9,245

$8,991

$9,577

$6,079
$5,941

$5,011

$4,727

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 $6,252

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20
Note: Q2’16 and Q2’18 spiked on the back of mega-round investments to Ant Financial including a record $14B deal in Q2’18 11
Fintech deals dropped to 2016 levels
Quarterly global VC-backed fintech deals, Q1’16 – Q1’20

541 544 538

527 524
498 500
457 445 471
442 443
395 404
360 353 352

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

12
Investors pull back on early-stage bets to focus on
fortifying existing portfolios
Quarterly global early-stage (seed/angel & Series A) VC-backed deals and fintech financing, Q1’16 – Q1’20 ($M)
344 345
314 324
302 315 310
287 288 295
292 284
271

228 238 228

227
$1,698

$1,101

$2,077

$1,547

$1,407

$1,692

$1,499

$1,680

$1,106

$1,221

$1,067
$841

$773

$728

$805

$982

$877
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20
Amount ($M) Deals

13
Seed/angel deal share drops to 5-quarter low as
Series A and B rounds pick up share
Quarterly deal share to global VC-backed fintech companies by stage, Q1’19 – Q1’20
9% 11% 9% 12% Other
13%
3% 3%
3% 5% 4% 4% 4% Series E+
3% 3% Series D
7% 8% 3%
6% 9% 7% Series C
14%
14% 17% 14% 16% Series B

26%
29% 22% 26%
28% Series A

38% 37%
32% 33%
28% Seed/Angel

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

14
Every region except Africa saw a dip in fintech
deals quarter-over-quarter
Global VC-backed fintech deals by continent, Q1’19 – Q1’20 ($M)
19
20

229 226
17
213
18

206 16
16 15
14

165 165 North 12

156 America
12

131 140 10

9 9 Africa
8 South
119 Asia 7 8
112 America
8

108 8 8
101 5 6
Europe 6
6

108
105 4
Australia
2

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

15
Asia funding dropped 69% QoQ as China faced the
first wave of the coronavirus outbreak
Global VC-backed fintech funding by continent, Q1’19 – Q1’20 ($M)
$319
$349 $704 $95
$11 $318 $128
$48 $8 $66
$1,292
$131
$1,897 $20
$82 $1,630
$1,291 $43
$1,733
$2,807
$1,853 $1,640
$1,154
$883

$3,993 $5,688 $4,420 $4,936 $3,493

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

North America Asia Europe Africa Australia South America

16
Mega-rounds stall globally in Q1’20, with zero
reported outside the US or Europe
Global number of fintech mega-rounds ($100M+), Q1’19 – Q1’20
15

11 11
10
9

6
5
4 4 4
3 3
2 2 2
1 1 1 1 1

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

North America Asia Europe South America Australia Africa

17
 GLOBALLY THERE ARE

67 FINTECH UNICORNS
VALUED, IN AGGREGATE, AT

$252.6 BILLION

18
 There are 67 fintech unicorns valued at $252.6B
Global VC-backed fintech companies with a private market valuation of $1B+ (as of 4/22/20)
NORTH AMERICA EUROPE ASIA
UNITED KINGDOM GERMANY SWEDEN
UNITED STATES CHINA

$3.5B $5.5B $2.6B $3.5B $3.5B $1.1B $5.5B $39.4B

$36B $8B $7.6B

$2B $1.1B $2.8B $1.2B $1.8B $1.5B

$2B $1B $1B

$1.4B
$2.6B $5.8B $1B

$2B
$2.9B $1.2B $1B
$1B
JAPAN
$3B $1.7B $4B *

$1B
$1.9B $1B $4.8B SOUTH KOREA

$3.2B $1.2B $1B $1.8B $2.2B

HONG KONG
$1.6B $1.1B $1B $1.4B
$1B
INDIA
$2.7B* $2B $1B $1.2B
SOUTH AMERICA $1.6B
$2.1B BRAZIL
AUSTRALIA
$3.8B $1B $10B
(as of Q2’15) AUSTRALIA $1.5B

$4.9B $3.5B $1.2B $1B $10B $1B

$1B
$1.8B $1.4B $16B

$1B
19
*Pending M&A $1.9B
 Q1’20 only saw 3 new fintech unicorn births
Global VC-backed fintech companies with a private market valuation of $1B+ (as of 4/22/20)
NORTH AMERICA EUROPE ASIA
UNITED KINGDOM GERMANY SWEDEN
UNITED STATES CHINA

$3.5B $5.5B $2.6B $3.5B $3.5B $1.1B $5.5B $39.4B

$36B $8B $7.6B

$2B $1.1B $2.8B $1.2B $1.8B $1.5B

$2B $1B $1B

$1.4B
$2.6B $5.8B $1B

$2B
$2.9B $1.2B $1B
$1B
JAPAN
$3B $1.7B $4B *

$1B
$1.9B $1B $4.8B SOUTH KOREA

$3.2B $1.2B $1B $1.8B $2.2B

HONG KONG
$1.6B $1.1B $1B $1.4B
$1B
INDIA
$2.7B* $2B $1B $1.2B
SOUTH AMERICA $1.6B
$2.1B BRAZIL
AUSTRALIA
$3.8B $1B $10B
(as of Q2’15) AUSTRALIA $1.5B

$4.9B $3.5B $1.2B $1B $10B $1B

$1B
$1.8B $1.4B $16B

$1B
20
*Pending M&A $1.9B
 Q1’20 saw a wave of fintech M&A exits in an
uncertain market for IPOs
Select Q1’20 fintech M&A activity (January 2020 – April 7, 2020)
Target

$13B

$7.1B
Acquirer

$5.3B

$2.65B

$1.2B

$185M

Dec-19 Jan-20 Feb-20 Mar-20 Apr-20

21
 Q1’20 Fintech
Sector Trends

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#AhaCBI
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH
MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

23
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH
MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

24
US jobless claims hit unprecedented levels in
Q1’20
Weekly US Jobless claims
January 1, 2000 – April 11, 2020

Source: FRED; Axios 25

Stimulus packages across the globe focus on
providing lifelines for small businesses

Senate passes $484 billion coronavirus bill

for small business and hospital relief,
testing
April 21, 2020

26
 SMB cash flow management startups attract
investment as businesses prepare for a recession

Most Recent Funding: $128M Series F - III Most Recent Funding: $2M Seed Most Recent Funding: $2M Seed
Select Investors: TSSP, Temasek, Fifth Third Select Investor: Accel Select Investor: Marchmont Ventures
Bank
Focus: Aavenir provides a platform for Focus: Float is a cash flow forecasting and
Focus: AvidXchange provides middle market companies to manage their source-to-pay budgeting solution for SMEs and
accounts payable and payment automation process using NLP and ML. The company offers accounting firms. Float’s platform enables
solutions. Prior to its most recent round, it modules for request for proposal management, users to see real-time snapshots of
raised $260M in Q1’20. contract lifecycle management, and AP incoming cash, upcoming expenses, and
automation. overdue invoices.
27
Startups simplifying tax returns vary in their
approaches

Most Recent Funding: $8M Convertible Note Most Recent Funding: $2.9M Convertible Note
Select Investors: NEA, Nyca Partners, Epic Ventures Select Investors: Y Combinator, Matrix Partners
Focus: Canopy is a cloud-based tax software that helps accounting Focus: Keeper Tax is a tax and expense tracking platform that enables
firms manage their practices. The platform allows tax professionals freelancers to identify expenses eligible to be written off. Through the
organize contacts, track tasks and files, and execute time and billing. service, Keeper Tax automatically monitors purchases for potential
write-offs and uses a mobile app to confirm eligibility with users.
Keeper tax also enables freelancers to file taxes directly.

28
Amid supply chain chaos, digitized and
coordinated solutions are more vital than ever

Most Recent Funding: $11M Series B Most Recent Funding: Series F (undisclosed amount), $240M Debt

Select Investors: Reefknot Investments, MasterCard, Bessemer Select Investors: HSBC, Notion Capital, Kite Ventures
Venture Partners, Augmentum Fintech
Focus: Tradeshift is an online B2B network and platform that enables
Focus: Previse uses machine learning to expedite payments to small buyers and suppliers to digitize trade transactions and collaborate
businesses supplying large corporations to improve cash flow and across the supply chain.
reduce administrative burden for corporate AP teams.
Traction: Tradeshift reported two years of strong quarterly revenue
Traction: Previse’s platform processes over 100,000 invoices per growth. In 2019, revenues grew by over 60%.
day. The company is a member of MasterCard’s Start Path program.
29
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH
MANAGEMENT

PAYMENTS
CAPITAL
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

30
Financial institutions increasingly look to fintech
automation to reduce costs and drive efficiency

To learn more, clients can access our expert Automation in Banking collection. Note: This market map is not exhaustive of the space. 31
Capital markets tech deals slide, but funding stays
above $1B as FIs look to digitize infrastructure
Global VC-backed capital markets financing trends, Q1’19 – Q1’20 ($M)
77
74

62 60

49

$1,149 $2,046 $1,242 $1,254 $1,092

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals

32
Interest in digital innovation is high, as corporates
emphasize operational efficiency
Earnings call mentions of “digital innovation” remained strong in Media mentions of “digital innovation” reached new highs amid the
Q1’20, but may drop in Q2’20 as corporates focus on core operations coronavirus pandemic

Source: CB Insights earnings call & media mentions 33

 Automation startups bring efficiency to opening
accounts, background checks, and investing

Most Recent Funding: $8M Series A Most Recent Funding: $4.4M Seed VC - II Most Recent Funding: $4.3M Unattributed
Select Investors: Point72 Ventures, Select Investors: Tribe Capital Select Investors: Undisclosed
Endicott Growth Equity
Focus: Certn is a background check solution that Focus: Parallel is an identity solution that
Focus: MANTL focuses on helping banks uses ML and AI to streamline and automate verifies accredited investor status to
and credit unions grow deposits and applicant screening for employers, landlords, provide efficiency in KYC/AML. The
accounts. The platform streamlines back- and property management firms. solution can be integrated into existing
office processes and enables omni- authentication flows.
channel access.

34
 FIs look to RPA to automate client onboarding and
back up documentation management

Most Recent Funding: $45M Series B-III Most Recent Funding: Incubator/Accelerator - III Most Recent Funding: $5M Series B-II
Select Investors: CDK Global, Lux Select Investors: FirstMark Capital, Felicis Select Investors: ING Ventures, Lakestar,
Capital, Kleiner Perkins, Baidu Ventures, Ventures, Plug & Play, Dcode Accelerate Dawn Capital, Temasek, GS Growth
Google Ventures, Silicon Valley Bank
Focus: HyperScience automates data extraction Focus: Eigen Technologies uses NLP to
Focus: Ripcord is a California-based and document management through its software extract qualitative information from
startup using robotics and natural suite for global financial services, insurance, documents and contracts.
language processing (NLP) to scan text healthcare, and government organizations.
documents and upload them to the cloud.

35
 As the world goes remote, behavior monitoring
applications gain traction to combat fraud

Most Recent Funding: Corporate Minority Most Recent Funding: $145M Series C Most Recent Funding: $100M Series C
Select Investors: MasterCard Select Investors: Bain Capital, American Express Select Investors: SoftBank
Ventures, CreditEase Fintech Investment Fund,
Focus: Trust Stamp is an AI-powered Focus: Behavox is an enterprise compliance
Industry Ventures, Maverick Ventures
authentication services company. Trust software company that provides employee
Stamp applies advanced cryptographic Focus: BioCatch, a Tel Aviv-based startup surveillance solutions. The company's
techniques and AI-powered presentation- developing AI-driven behavioral authentication solutions enable senior management and
attack detection tools to biometric and solutions to secure banking, insurance, and e- risk & compliance teams to detect market
other identity data to create a proprietary commerce transactions. abuse, insider threat, collusion, and
non-PII Hash, or EgHash. reckless behavior in real time.
36
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

37
Regtech funding plummeted (though Q2’20 already
sees demand for digital identity & fraud solutions)
Global VC-backed regtech financing trends, Q1’19 – Q1’20 ($M)
29
25
23
23
21

$348 $579 $556 $541 $121

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20
Amount ($M) Deals

38
As governments and FIs collaborate, concerns
around data privacy compliance arise
Media mentions

Source: CB Insights media mentions 39

 European regtech sees demand from banks
requiring customer privacy solutions

Most Recent Funding: $6M Unattributed VC Most Recent Funding: $80M Series C
Select Investor: ABN AMRO Ventures Select Investors: ABN AMRO Ventures, Citigroup, Warburg Pincus,
Accel, IQ Capital Partners, Partech Partners, Salesforce Ventures
Focus: Fenergo provides enterprise Client Lifecycle
Management platform solutions designed to help financial Focus: Privitar is a platform that helps companies extract meaning
institutions manage the end-to-end regulatory onboarding from data without comprising confidentiality. Privitar has been
process. Fenergo provides solutions from onboarding to building out its data protection coverage for the UK’s National
management of client and counterparty data and regulatory Health Service (NHS), working with the NHS’s IT provider as early
compliance with existing and emerging regulations. as June 2018, per CB Insights’ business relationships data. The
company plans to use funds to scale globally.
40
 US regtechs help connect banks with data while
still complying with data privacy regulations

Most Recent Funding: $50M Series C-II Most Recent Funding: $210M Series B
Select Investor: Tiger Global Management Select Investors: Insight Partners, Coatue Management
Compliance Focus: EU General Data Protection Requirements (GDPR), Compliance Focus: GDPR, CCPA, Brazil’s Lei Geral de Proteção de Dados
California Consumer Privacy Act (CCPA) (LGPD)
Description: BigID is a multi-industry platform for enterprises to protect Description: OneTrust is a cross-industry data privacy platform that
customer data and comply with data privacy regulations. BigID uses ML automates risk assessments, data mapping, threat identification, and risk
to identify and categorize data for individual users. management enforcement. The platform helps privacy professionals
operationalize accountability and compliance with global data protection
frameworks. 41
 Digital identity companies are using biometrics to
help prevent the spread of Covid-19

Most Recent Funding: $30M Unattributed Most Recent Funding: $100M Series E
Select Investor: Runcheng Industrial Fund Select Investors: TPG Growth, M12, Salesforce Ventures
Coronavirus focus: In one application of its technology, YITU is using AI to Coronavirus focus: Onfido is working with at least one European government
detect and quantify coronavirus-related lung lesions in near-real time, to develop phone-based "immunity passports" for those who have already
aiming to eliminate hours of work compared to manual methods. recovered from COVID-19 and tested positive for antibodies. This is a
variation on something China is already implementing.
Description: YITU Technology builds AI applications using computer
vision, speech recognition, natural language processing (NLP), and AI Description: Onfido is developing an AI-driven biometric authentication
chips for finance, healthcare, retail, among others. platform to verify government-issued IDs and documents for processes
including KYC, onboarding, and fraud detection.

42
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH WEALTH
REGTECH
MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

43
Insurtech deals were flat in Q1’20, but funding
dropped to a 5-quarter low
Global VC-backed insurtech financing trends, Q1’19 – Q1’20 ($M)
72
69
61 59 59

$1,633 $1,465 $1,392 $1,908 $825

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals

44
Cyber insurance premiums are growing steadily
Direct written premiums (DWP) including excess and surplus lines providers ($M)

$4,000
$3,598

$3,087 2M
$3,000 Successful cyber attacks in 2018
$2,383

$2,000
$45B
Losses from cyber attacks in 2018
$1,415

$1,000 >5B
Personal records exposed by cyber
attacks in 2018
$0
2015 2016 2017 2018

Source: The National Association of Insurance Commissioners (NAIC) 45

Cyber insurance represents <1% of the US P&C
industry, and insurer exposures are still low
Top 10 cyber insurance companies’ cyber DWP as share of their total 2018 company DWP (%)
40%

32.9%

30%

20% 18.9%

10%
4.9% 4.5%
1.7% 1.6% 0.8%
0.6% 0.2% 0.4%
0%
Chubb AXA US AIG Travelers Beazley CNA AXIS BCS Liberty Zurich
Mutual
Source: NAIC 46
Data-driven approaches are gaining traction in cyber
insurance, as the threat of data breaches grows

Most Recent Funding: $5M Series B-II Most Recent Funding: $34M Series B Most Recent Funding: $32M Series B
Select Investor: MTech Capital Select Investors: Lightspeed Venture Select Investors: Telstra Ventures, Bain
Partners, Khosla Ventures Capital Ventures, .406 Ventures, Obvious
Focus: CyberCube focuses on helping
Ventures
(re)insurers and brokers better manage Focus: At-Bay is a cyber insurance platform
cyber underwriting and risk transfer. The that focuses on monitoring companies’ cyber Focus: Corvus is a commercial cyber
company has partnered with MunichRe, vulnerabilities and providing brokers with insurance MGA that uses AI and ML to bring
Chubb, CNA, Aon, and Guy Carpenter. better analytics. The company has grown a data-driven approach to cyber
revenue 10x YoY, grown its broker network by underwriting.
400%, and renewed 100% of its policies.
47
 Workers’ comp coverage picks up as
unemployment and income concerns skyrocket

Most Recent Funding: Undisclosed Most Recent Funding: $1.0M VC Funding Most Recent Funding: $5.6M Series A
Corporate Minority
Select Investor: Two Sigma Ventures Select Investors: Royal Street Ventures,
Select Investor: Employers Holdings Mercury Fund
Focus: Clara Insurance is creating a benefit
Focus: Cerity is an online workers’ comp that quickly sends cash to users when they Focus: Aclaimant is a platform that enables
broker enabling small businesses to access are injured or sick. active workplace management to reduce
quotes and coverage to protect employees. workers’ comp risk.
48
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH
MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

49
Despite a 3-quarter decline in deals, wealth tech funding
grows 57% QoQ amid industry consolidation
Global VC-backed wealth tech financing trends, Q1’19 – Q1’20 ($M)
65

49
44 43

27

$824 $431 $785 $268 $420

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals

50
Billion-dollar consolidation continues among
wealth management firms as fees trend downward
Charles Schwab acquires TD Ameritrade for $26B Morgan Stanley acquires E-Trade for $13B

Source: Visual Capitalist, Morgan Stanley Investor Presentation 51

 China’s regulators are opening the market to
bolster investing and wealth management

The China Securities Regulatory Commission is opening up

the asset management industry to foreign-owned funds.

Goldman Sachs and Morgan Stanley both moved to 51%

ownership of their respective local securities joint ventures —
Goldman Sachs Gao Hua Securities Co. and Morgan Stanley
Huaxin Securities Co. (Goldman increased its stake from 33%
and Morgan Stanley increased its stake from 49%.)

Sources: WSJ, FT, Bloomberg 52

HSA assets are steadily increasing, offering tax
incentives that could attract thrifty investors
Total health savings accounts (HSA) assets including investments and deposits in, 2006-2021E ($B)
$90.3

$77.4

$65.9

$53.8
$45.2
$37.0
$30.2
$24.2
$19.3
$15.5
$9.9 $12.2
$5.5 $7.2
$1.7 $3.4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021E
Source: Devenir Research 53
 HSAs attract interest as startups gain traction and
established players test the market

Q2’20 Developments: Fidelity Investments Q2’20 Developments: DriveWealth added HSA Most Recent Funding: Incubator/Accelerator
launched its full-service health savings accounts investment services to its suite of investment
products. The infrastructure fintech supports clearing, Select Investor: Modern Passport
for advisors including broker-dealers, banks, and
registered investment advisors. executing, and broker-related services for fintechs Focus: Bend offers a health savings account as a
adding digital trading, robo-advisory, among others. benefit companies can offer employees or directly
The offering is integrated with Fidelity’s existing
DriveHSA targets HSA providers that want to offer to 1099 workers. The solution enables users to
advisor tech platform, Wealthscape, enabling
micro-investments in health savings, as opposed to simplify saving for healthcare.
advisors to handle clients’ HSA investment
management and operational oversight. lump sums. DriveHSA supports 4,000+ equities, ADRs,
ETFs, and ETNs, 10,000+ mutual funds, money market
funds, and FDIC bank sweeps.
54
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH
MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

55
FIs embrace APIs across fintech verticals to
streamline product go-to-market strategy

For deeper analysis, clients can check out our post, Fintech Infrastructure Market Map: Is Financial Services Having Its AWS Moment? Note: This market map is not 56
exhaustive.
Payments sees a drop in deals and funding as
global transaction volumes stagnate
Global VC-backed payments financing trends, Q1’19 – Q1’20 ($M)
104

89
77 76

60

$1,997 $2,218 $2,368 $3,881 $2,486

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals

57
Top payments investors are increasing investment
pace
Investments over time by American Express, Mastercard, PayPal, and Visa, 2009 – Q1’2020
$500M $250M $100M Undisclosed

2009 2011 2013 2015 2017 2019 2021

Source: CB Insights Where The Biggest Payments Players Are Investing In Private Markets 58
 Payments-related acquisitions persist as
appetite for diversified revenue remains strong

Q1’20 $8.6B Q2’20 Q1’20 $5.3B Q2’20 $1.2B Q1’20 $2.7B

Pending Valuation Undisclosed Majority Pending Valuation Pending Valuation Pending Valuation

59
GROWING PAYMENTS VERTICALIZATION

Funding: Valuation:
$263.3M $1.0B
Flywire is a global payments platform that
takes a verticalized approach.
The company has processed over $12B in
payments with modules focused on the
education, healthcare, travel, and
technology industries.
In February 2020, Flywire acquired Simplee,
a Palo Alto, California-based healthcare
expense platform.
Select Investors: Goldman Sachs,
Temasek, Spark Capital, Accel, F-Prime
Capital

60
 E-commerce payment solutions enabling faster
transactions gain traction

Most Recent Funding: $21.6M Series B Most Recent Funding: $20M Series A
Select Investors: Vostok Emerging Finance, Accel, Wellington Select Investors: Stripe, Susa Ventures, Index Ventures
Management
Focus: Fast is a platform-agnostic login and checkout service that enables
Focus: Juspay is Bengaluru-based full-stack digital payments platform users to transact faster without rekeying credentials and payment info. The
that enables secure and frictionless payments. company plans on using the funds to accelerate global rollout of its one-click
e-commerce product and for further product development.
Traction: Juspay processes $10B in annualized payment volume and
has seen 200M downloads of its software development kit. The startup Traction: With its latest investment, Fast plans to grow from 20 to 60
currently powers payments for Amazon, Flipkart, Uber, Ola, and Cred. employees by the end of 2020.
61
 GLOBAL VC-BACKED
FINTECH Q1’2020

INSURTECH
WEALTH
REGTECH
MANAGEMENT

CAPITAL PAYMENTS
MARKETS

SMB LENDING

MACRO SECTOR
TRENDS Q1’20

62
Loan servicing and debt collection companies are
poised to gain traction as defaults are more likely

To learn more, clients can access our expert Debt Collectors collection. Note: This market map is not exhaustive of the space. 63
Lending deals and funding are down, but demand
for debt solutions is growing
Global VC-backed lending financing trends, Q1’19 – Q1’20 ($M)

73 71
67 69

40

$881 $2,746 $2,806 $1,302 $837

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals

64
 Debt collectors across the globe raise funding to
scale with demand

Most Recent Funding: $36.4M Series C Most Recent Funding: $9.2M Series A Most Recent Funding: $4.4M Seed-II Most Recent Funding: $1.1M Seed

HQ: California HQ: Australia HQ: Germany HQ: France

Select Investors: Arbor Ventures, Felicis Select Investors: MassMutual Ventures, Select Investors: Mangrove Capital Partners, Select Investors: AngelSquare Fintech,
Ventures, Caffeinated Capital, Nyca Carthona Capital, Reinventure Speedinvest, Seedcamp Cameleon Invest

Focus: TrueAccord works with businesses Focus: InDebted is a debt recovery software Focus: Re:ceeve is an automated debt Focus: Rubypayeur is a B2B debt collection
to recover lost revenue and works with targeting SMBs. The software offers flexible servicing platform designed to streamline platform. Services include verifying
those in debt to create flexible payments installment repayment options and offers and personalize debt collection processes business entities and collecting debts. The
solutions. incentives to repay liabilities in full. and improve users’ cash flow and liquidity. company monetizes through white-label
partnering with collectors and take a 5-10%
fee on the debt recovered.
65
 Startups offering debt management and emergency
loans see traction among student borrowers

Most Recent Funding: Unattributed Most Recent Funding: $2.4M Seed-III Most Recent Funding: $6M Series A
Select Investors: 500 Accelerator, Select Investors: Omidyar Network, American Select Investors: Nyca Partners, Temerity
BlueKey Wealth Advisors Family Insurance Capital, 9yards capital
Focus: Chipper is a student loan Focus: Edquity helps high school and college Focus: Savi helps students navigate loan
repayment app that automates payments, students plan for the cost of college through repayment to minimize interest and save
prioritizes highest interest loans, and automated budgets, financial aid time through automation.
identifies loan forgiveness opportunities. comparison, and financial health monitoring.
66
 Early-stage opportunities in mortgage refinance
and debt management as delinquencies loom

Most Recent Funding: $10M Series A Most Recent Funding: $0.15M Seed

Select Investors: Crosslink Capital, Point72 Ventures Select Investor: Y Combinator

Focus: Brace is a digital platform for mortgage servicing that aims to Focus: Haven is an early-stage mortgage servicing platform focused on
improve the loss mitigation process and drive efficiency through building modern customer interfaces and augmented payment modeling for
workflow automation. Brace is in a strategic partnership with asset lenders.
manager Palisades Group and works closely with Flagstar Bank.

67
 Appendix

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#AhaCBI
Geographic
trends

69
ASIA FINTECH VC-BACKED EQUITY FUNDING IN Q1’20:

$883M
ACROSS

108 DEALS

70
In Asia, fintech deals and funding dropped off as
the Covid-19 outbreak forced a lockdown
Asia VC-backed fintech financing trends, 2016 – Q1’20 ($B)
636
566

466
390

$7.1
108

$11.5 $6.2 $23.2 $0.9

2016 2017 2018 2019 2020 YTD

Amount ($B) Deals

71
In Q1’20, Asia saw a 69% drop in funding to $883M
and a 23% drop in deals QoQ
Asia VC-backed fintech financing trends, Q1’19 – Q1’20 ($M)
165
156
140

105 108

$1,660

$1,154
$1,291 $1,853 $2,807 $883

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals
72
India exceeds China’s
India overtakes China in fintech funding
funding activity for the
China vs. India VC-backed fintech funding, Q1’19 – Q1’20 ($M)
first time in 5 quarters
$1,872
China saw its worst quarter for
fintech since 2015 as the country
shut down to fight the first
coronavirus outbreak, with just
29 deals totaling $175M in
Q1’20.
India
China
As the first country to fight and
start to recover from

$1,660
coronavirus, what happens in
China could be a gauge of what’s
ahead for fintech as the virus $306

$337

$352

$478

$689

$706

$215

$299

$421

$175
spreads across other regions.
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20
* One97 Communications 2-part $1.7B Series G in Q4’19 were called out for illustrative purposes. Not to scale.
73
China and India tie
India and China activity mirror each other as uncertainty
with 29 deals hits both Asian hubs
Though Chinese investors were China vs. India VC-backed fintech deals, Q1’19 – Q1’20
the first to feel the impact of
Covid-19, resulting in a pullback 59
on deals, the ripple effect
quickly spread to other countries
including India which tied with 43
China for 29 deals. China
34 33
34 33
Not pictured, Singapore, Japan, 29 29
24
and Indonesia also saw deals 24
India
dip in Q1’20 QoQ.

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

74
EUROPE FINTECH VC-BACKED EQUITY FUNDING IN Q1’20:

$1.6B
ACROSS

108 DEALS

75
After a record 2019, funding activity in 2020 is likely
to fall short of peak levels
Europe VC-backed fintech financing trends, 2016 – Q1’20 ($B)
409 463
437

296

108

$1.4 $2.9 $3.9 $6.6 $1.6

2016 2017 2018 2019 2020 YTD

Amount ($B) Deals

76
European fintech funding grows 27%, while deals
remain relatively flat
Europe VC-backed fintech financing trends, Q1’19 – Q1’20 ($M)
131
119
112 108
101

$1,733 $1,897 $1,630 $1,292 $1,640

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deals

77
US FINTECH VC-BACKED EQUITY FUNDING IN Q1’20:

$3.3B
ACROSS

148 DEALS

78
If US fintech activity continues at this rate, deals
and dollars will fall short of 2019
US VC-backed fintech financing trends, 2016 – Q1’20 ($B)
822
787
701
644

148

$6 $8.8 $12.8 $17.9 $3.31

2016 2017 2018 2019 2020 YTD

Amount ($B) Deals

79
US fintech deals dropped 23% QoQ to a 13-quarter
low, as funding hit its lowest point since Q3’18
US VC-backed fintech financing trends, Q1’17 – Q1’20 ($B)
236

203 205 206

199
189 193
181 181 176 178
163
148
$1.5

$2.3

$2.3

$2.7

$2.5

$3.4

$3.2

$3.6

$3.8

$5.5

$4.0

$4.7

$3.3
Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($B) Deals

80
Most Active Fintech
Investors And
Biggest Deals
81
The most active fintech VCs from Q1’19 – Q1’20
By unique fintech company investments (new or follow-on)

Rank Investor Select Fintech Investments

82
The most active fintech VCs from Q1’19 – Q1’20
By unique fintech company investments (new or follow-on)

Rank Investor Select Fintech Investments

8
India

83
Challenger bank Revolut claims the largest round
5 of the top 13 deals to VC-backed fintech companies in Q1’20 were $200M+ mega-round investments
Deal Date // Total Disclosed
Company HQ Select Investors Description
Amount Raised Funding

United $836M Index Ventures, Technology Crossover Ventures,

Feb'20 // $500M Digital challenger bank
Kingdom ($5.5B valuation) Bond Capital, DST Global, Ribbit Capital

$903M Bessemer Venture Partners, Tiger Global

US – MA Feb'20 // $400M Restaurant POS platform
($4.9B valuation) Management, TPG Growth

Intercontinental Exchange, M12, Pantera Capital,

US – GA Mar'20 // $300M $483M Pay, The Boston Consulting Group, CMT Digital, Consumer digital wallet and crypto exchange
Goldfinch Partners

$1.2B
Sweden Jan'20 // $200M Commonwealth Bank of Australia POS lender
($5.5B valuation)

US – CA Mar'20 // $200M $1B Menlo Ventures, Crosslink Capital Digital challenger bank

Hamilton Lane Advisors, Ping An Ventures, BNY

US – NY Mar'20 // $146M $180M Mellon, BlackRock, Goldman Sachs, Blackstone, Alternative investment platform
UBS, WestCap Group, Affiliated Managers Group
*Indicates unicorn deal 1
5 of the top deals came went to cos outside the US
Deal Date // Total Disclosed
Company HQ Select Investors Description
Amount Raised Funding

US – NC Jan'20 // $130M $962M TSSP Accounts payable platform

$175M Citi Ventures, Susquehanna Growth Equity,

US – TX Jan'20 // $125M Accounts receivable platform
($1B valuation*) ICONIQ Capital

Mexico Jan'20 // $125M $125M Softbank Capital Digital lending platform

$263M Temasek, Goldman Sachs, Adage Capital

US – MA Feb'20 // $120M Cross-border payments network
($1B valuation*) Management

France Jan'20 // $115M $151M DST Global, Tencent Holdings, Valar Ventures Digital challenger bank

$206M Insight Partners, Dawn Capital, Poste Italiane,

Sweden Jan'20 // $100M Cloud-based open banking platform
($461M valuation) ABN AMRO Ventures

AXA Venture Partners, Susa Ventures, Norwest

Insurance marketplace and price comparison
US – NY Jan'20 // $100M $151M Venture Partners, MassMutual Ventures,
platform
Transamerica Ventures

*Indicates unicorn deal 85

 Methodology
CB Insights encourages you to review the methodology and definitions employed to better understand the numbers presented in this
report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights
directly. Additionally, if you feel your firm has been under-represented, please send an email to info@cbinsights.com and we can work
together to ensure your firm’s investment data is up to date.

What is included: What is excluded:

― Equity financings into emerging fintech companies. Fundings must be put into VC-backed — No contingent funding. If a company receives a commitment for $20M subject to hitting
companies, which are defined as companies who have received funding at any point from certain milestones but first gets $8M, only the $8M is included in our data.
venture capital firms, corporate venture groups, or super angel investors.
— No business development/R&D arrangements, whether transferable into equity now, later, or
― Fundings of only private companies. Funding rounds raised by public companies of any never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity
kind on any exchange (including Pink Sheets) are excluded from our numbers, even if they financing, nor is it from a venture capital firm. As a result, it is not included.
received investment by a venture firm(s).
— No buyouts, consolidations, and/or recapitalizations. All three of these transaction types are
― Only includes the investment made in the quarter for tranched investments. If a company commonly employed by private equity firms and are tracked by CB Insights. However, they are
does a second closing of its Series B round for $5M and previously had closed $2M in a excluded for the purposes of this report.
prior quarter, only the $5M is reflected in our results.
— No private placements. These investments, also known as PIPEs (Private Investment in Public
― Round numbers reflect what has closed — not what is intended. If a company indicates Equities), are excluded even if made by a venture capital firm(s).
the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount
— No debt/loans of any kind (except convertible notes). Venture debt or any kind of debt/loan
which has closed.
issued to emerging startup companies, even if included as an additional part of an equity
― Only verifiable fundings are included. Fundings are verified via various federal and state financing, is not included. If a company receives $3M with $2M from venture investors and
regulatory filings, direct confirmation with firm or investor, or press release. $1M in debt, only the $2M is included.
― Previous quarterly VC reports issued by CBI have exclusively included VC-backed rounds. — No government funding. Grants, loans, or equity financings by the federal government, state
In this report, any rounds raised by VC-backed companies are included, with the agencies, or public-private partnerships to emerging startup companies are not included.
exceptions listed.

86
WHERE IS ALL THIS DATA FROM?

The CB Insights platform

has the underlying data
included in this report

app.cbinsights.com/signup

87