Fintech Startups Set Investment Record

Fintech M&As broke records last year.

The latest Fintech M&A Market Report from international adviser Hampleton Partners shows that investment in fintech startups hit a new record in 2018, with disclosed transaction value of $30.8 billion (24 billion €), double the prior year’s $15 billion.

“As fintech startups mature, the average funding round has doubled in size compared to 2017,” Hampleton announced, “with the average venture round in the Asia-Pacific region reaching almost double the global average.”

Hampleton also reported that the robust fintech M&A activity in the first half of 2018—$50 billion from 189 deals—was not repeated in the second half. Latter 2018 counted 160 transactions with a disclosed value of just under $13 billion. The consultants attributed the decrease to the absence of blockbuster deals like Blackrock’s $17 billion acquisition of Thomson Reuters.

In the second half of 2018, the UK continued to lead in the way in fintech industry activity in Europe, according to Hampleton Partners’ fintech specialist, Jonathan Simnet. Going forward, the consultancy predicts more scrutiny of business fundamentals as funders grow more selective.