FT Partner released the FinTech Insights for the third quarter of 2020, which mainly analyzed the situation of fintech market of the third quarter in terms of financing and M&A, and analyzed the impact of COVID-19 on the fintech industry.
Fintech Insights- Financing
Fintech financing in the third quarter of 2020 was $12 billion, the third largest quarterly financing amount ever.
Financing in this quarter lagged behind $12.9 billion in the third quarter of 2019 and $24.4 billion in the second quarter of 2018, although the second quarter of 2018 included $14 billion of Ant Group’s financing.
Similarly, the number of investment transactions in the third quarter of 2020 was the third, with 459, next only to 487 in the second quarter of 2020 and 524 in the third quarter of 2019.
The strong financing amount was affected by a number of large-scale financing. So far, there have been 74 financing transactions of $100 million or more in 2020, 29 of which occurred in the third quarter.
So far this year, 17 venture capital companies and strategic investors have made seven or more new investments in fintech.
Fintech Insights-Merger and Acquisition
In the third quarter of 2020, the M&A transaction volume of fintech was $66.8 billion, the third highest in history.
Prior to that, the M&A trade volume was $84.2 billion in the first quarter of 2020 and $112.7 billion in the first quarter of 2019 (which included the largest M&A deal with FIS acquiring WorldPay for $43 billion).
The number of M&A transactions in the third quarter of 2020 was 245, significantly higher than 166 transactions in the second quarter. Total transactions in the second quarter of 2020 were the lowest since the first quarter of 2014 (with 159 transactions).
Compared with financing activities, COVID-19 had a greater impact on M&A. But the level of M&A activity in the third quarter of 2020 marked a rebound.
In the third quarter of 2020, there were 16 M&A transactions with a value of $500 million or more, compared with 12 in the first quarter of 2020 and 4 in the second quarter of 2020. This level actually represented that M&A transactions more than $500 million in fintech were the largest in the third quarter.
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