Fintech investment is running at record levels in the United States and Europe this year, leading 2019 toward what might be the second largest year for venture capital in the sector.
Through midyear, global financings in fintech have added up to $20.9 billion, with $10.9 billion deployed in the second quarter, the second largest quarter ever, according to a report from the investment bank Financial Technology Partners.
If the pace of activity continues, the year would come in at about $42 billion, second only to the 2018 record of $53.8 billion, the report shows.
Deal count is on pace to match last year’s, with an estimated 1,636 transactions possible by the end of December.
Big money rounds continue. Top Q2 deals include the mammoth $800 million Greensill funding from the SoftBank Vision Fund, along with UiPath’s $568 million fundraise and SoFi’s $500 million transaction.
Globally, the banking and lending technology sub-sector has been the most active.
The year also continues a multi-year shift of funding abroad. Forty-seven percent of deals have taken place in North America through midyear compared with 78 percent eight years ago.
One hot geography is Europe, where $5.8 billion was invested in the first half, more than in all of last year, the report said.
Still, North American funding is keeping a gallop, with capital on pace to top last year’s record of $21.5 billion