Fintech Investment Update in 2020

For us all, 2020 has been a black swan, a hardly ever predictable scenario.

After the second quarter of the year, we have seen the venture capital ecosystem repositioning itself to support a growing innovation ecosystem.

It is an ever more ingrained part of the economic development policies for states. The key attraction in funding innovation is, of course, the ability to create new high skilled jobs. Technology and innovation are at the heart of how we will recover economies across Europe and the world.

In 2020, we saw clear winners in life sciences and healthcare. Investment reaching a record of $51 billion. We observed how e-commerce won the fight with the High Street retail outlet, leaving a big question mark over how we will rebuild what has been completely decimated.

MARKET DATA

It is no surprise that investment financial services technologies represent an essential part of our ecosystem. In 2020, we saw a contraction of around 13% at a global level of investment that has gone into space.

Across Europe and the US, investment activity has surpassed Asia as the markets are mature and clear winners for specific verticals are starting to be determined.

In the US, we have seen the M&A activity going up by 25% in fintech signalling that the beginning of the market consolidation is upon us.

Over $8 billion were invested in financial services technologies, with London…