Global investment in fintech saw a significant resurgence in the first half of 2021, reaching $98 billion, with an unprecedented number of deals, according to KPMG.
Following a challenging 2020 impacted by Covid-19, funding across venture capital (VC), private equity (PE), and other investment avenues increased by $12 billion compared to the previous year’s first half, rising from $87 billion to $98 billion. The number of deals surged to a record 2,456.
Venture capital investment alone surpassed $52 billion during this six-month period, approaching the annual record of $54 billion set in 2018. Notable VC rounds included funding for Robinhood ($3.4 billion), Brazil’s Nubank ($1.5 billion), BNPL company Klarna (two rounds totaling $1.9 billion), and Germany-based wealthtech firm Trade Republic ($900 million).
The United States remained a leader in fintech funding, securing $42.1 billion of the total, while the Americas collectively accounted for $51.4 billion. The EMEA region saw investments increase to $39.1 billion, up from $26 billion in the first half of 2020, and Asia reported $7.5 billion, an increase from $4.5 billion in the same period last year.
This year, sectors experiencing notable growth include wealthtech, regtech, cryptocurrencies, and cybersecurity.
Anton Ruddenklau, global co-leader of fintech at KPMG International, commented, “Cryptocurrency and blockchain are experiencing explosive growth globally. There are numerous developments in this space, including China’s eCNY project, Facebook’s Diem, and various ecosystem initiatives, along with many trading platforms securing funding. Digital currencies and virtual assets are increasingly prominent in discussions, and it seems that for the remainder of this year, crypto will be a highly attractive area for investors.”