FinTech Funding Reaches Record High in Q2 2021 FinTech Funding Reaches Record High in Q2 2021
illustration of FinTech funding

FinTech Funding Reaches Record High in Q2 2021

FinTech is on fire! As the latest “State of FinTech” release from CBInsights notes, last quarter marked a boom for financial technology startup funding. In fact, Q2 set a new record for investment deals in the sector.

According to the report, FinTech companies raised a total of $30.8 billion from venture capital firms last quarter. That was up an impressive 30% from the first quarter of the year — which itself was a record. This record-breaking sum was spread across 657 individual deals cataloged. Of those, 88 were so-called “mega-rounds” of $100 million or more. In total, mega-rounds made up 70% of total funding for the quarter. As a result, the average deal size grew from $37 million in Q1 to $47 million in Q2.

One of the larger funding rounds to close in Q2 2021 came from Plaid. After Visa’s acquisition of the firm fell through, the company raised an astounding $425 million Series D in April. Incidentally, last month, Visa announced plans to purchase UK-based FinTech Tink for approximately $2.15 billion.

The quarter’s rounds also showed some emerging themes, including the growth in teen-centric challenger banks. In Q2 alone, Greenlight raised $260 million, Current closed a $220 million round, and Step saw a $100 million Series C. Speaking of Current, a recent eMarketer report found that the neobank is now the second-largest in the United States with an estimated four million users. This puts them behind only Chime in terms of FinTech banking platforms.

As for the VCs that are most invested in the sector, Sequoia retained its crown as the most active FinTech investor over the past year. They were followed by both Accel and Ribbit Capital in a tie. Finally, a16z and Index Ventures filled out the top five.

CBInsight’s Q2 2021 report also provided an update on FinTech unicorns. Globally, there were a total of 131 FinTech unicorns during the quarter, with a combined valuation of $516 billion. Of course, this figure was impacted or will be impacted by some high-profile IPOs. For example, SoFi went public via SPAC last month. Meanwhile, the controversial stock trading app Robinhood is gearing up for its IPO, which is currently expected to take place on July 29th.

While it’s fascinating to see the final figures in print, it wasn’t hard to see that FinTech was having a massive year. Between some truly impressive mega-rounds and noteworthy IPOs, there’s also been a flood of early-round investments among some promising startups. As a result, the question isn’t if the sector can set another new record but when that next milestone will be reached.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...