Record-Breaking VC Investment in Fintech in First Half Of 2021

Record-Breaking VC Investment in Fintech in First Half Of 2021

KPMG’s Pulse of Fintech reveals investment hit USD 98 billion.

USD 98 billion in fintech investment (M&A, PE and VC) in H1’21, compared with USD 121.5 billion during all of 2020.

Global VC investment in fintech reached a record USD 52.3 billion in H1’21 – more than doubling the USD 22.5 billion seen in H2’20.

Overall, global fintech funding across M&A, PE, and VC deals soared to a new high in H1’21, according to KPMG’s Pulse of Fintech, a bi-annual report on fintech investment trends. Dry powder cash reserves, increasing diversification in hubs and subsectors, and strong activity across the world contributed to the record start to 2021, with funding increasing from USD 87.1 billion in H2’20 to USD 98 billion in H1’21.

Fintech valuations remained very high in H1’21 as investors continued to see the space as attractive and well-performing – a likely driver in the explosion of unicorn births with 163 created in the first half of the year. Under pressure to increase the velocity of their digital transformation and to enhance their digital capabilities, corporates were particularly