That funding came as a result of nearly 5,000 new deals, notes the report. With respect to venture capital funding, 2021 saw an overall 153% increase year-over-year in terms of deal value and that increase was more than the previous two years combined.
To that end, according to information from the data and research company, 2021 saw a number of companies enjoy big-ticket exits primarily through public listings. Notably, Robinhood, Coinbase, Nubank, Affirm and Wise contributed to approximately $332 billion in money raised by fintechs listing.
“The payments space had the strongest fundraising year with $33.8 billion of invested capital in 2021, surpassing consumer finance… which received the most capital during the previous three years,” according to the report.
Sample of top funding round deals in 2021, per the Annual Fintech Report:
- Mollie: $805.8 billion Series C
- Stripe: $600 million Series H
- ServiceTitan: $500 million Series F
- SaltPay’s: $500 million Series C
Mollie’s enormous funding round was led by Blackstone Growth and also featured EQT Growth, HMI Capital, General Atlantic, TCV and Alkeon Capital. “Venture valuations continued to climb across all stages in 2021. The median pre-money valuation for VC-backed, late-stage fintech companies jumped [150% to $200] million in 2021, a record high,” notes the report.
In addition to the funding tally, the 2021 Annual Fintech Report also touched on the top trends shaping the fintech industry across the globe and identified areas of emerging opportunity. Among the topics addressed include alternative lending, digital assets, capital markets and consumer finance.
From Twitter
Venture Investment Partners @GeorgeB14941177
"Venture debt is being used for #startups to extend their runway and limit founders’ dilution. #Fintech companies have been raising large debt rounds to finance their business models. #VentureCapital #VC #Startup #StartupLife #Founder #Founders #Entrepreneur #Entrepreneurship"
PitchBook also pointed out there are some systemic changes taking hold in the venture space, as debt lenders appear to be tightening their loan terms. In recent years, venture debt specialists have engaged in fierce competition with one another, and this has generally led to favorable loan terms for burgeoning companies. However, that trend is starting to reverse.
From Twitter
Alibaba Cloud @alibaba_cloud Mar 24
"Did you miss out on #AsiaForward’s VC talks? Watch the recap and discover how Fintech startups can compete against big players, and what characteristics make hardware startups more likely to be funded: https://alibabacloud.com/startup/startup-day-2022-03… #ProjectAsiaForward https://twitter.com/i/status/1506911194245996546"
“Lenders are reining in loan sizes, shortening interest-only repayment periods, and taking other steps to react to changing market dynamics,” says PitchBook’s analysis. “The shift follows recent public market declines in tech stocks and newly public companies, which have created a gap between private and public valuations. That disconnect has pushed some private lenders and investors to reevaluate how eagerly they pursue deals and the valuations they’re willing to accept when they do decide to invest.”
For a preview of the report, visit here: https://pitchbook.com/news/reports/2021-annual-fintech-report.
