State of Fintech Q3’23 Report
State ofFintech Global | Q3 2023 Global data and analysis on dealmaking, funding,and exits by private market fintech companies Guess Less.Win More. CB Insights helps the world’s leadingcompanies make smarter technologydecisions with data, not opinion. Our Technology Insights Platform providescompanies with comprehensive data, expertinsights, and work management tools thatenable them to discover, understand, andmake technology decisions. ▮▮▮▮IIISign up for a free trialSign up for a free trial Platform Connect Get introductions to the right technologyproducts, services, and partners withone click. No research. No hassle. Request a demo Make your brand moresearchable. Findable.Buyable.Partnerable.Investable. Complete a free Analyst Briefing Survey*and get in front of enterprise tech buyers,M&A teams, and investors. *Survey takers have increased their lead generation 3x on average. ▮▮▮▮▮IIIApply hereSign up for a free trial With CB Insights, youfind the right informationin a matter of seconds.Analysts will also sendfurther detailed portfolios, which is really valuableinformation. Selim YukselVP of Innovation, Akbank LAB View success story→ Dig Deeper. CB Insights clients can find and trackcompanies using our analyst-curatedExpert Collections. Wealth TechInsurtechCapital Markets Tech PaymentsBankingDigital Lending Why these paymentscompanies have top customersatisfaction scores 3 applications of generative AIin financial services Our Most PopularResearch on ESG Market Map: 115companies powering ESG-focused investing and banking The State of Tech M&A: GlobalActivity & Emerging Trends Fintech Banking-as-a-service (BaaS) isseeing a burst of M&A andventure activity. How do theseembedded fintech providersstack up? Retail Bank AI Readiness Index:Who’s best-positioned for theAI boom? Analyzing Visa’s growthstrategy 200 companies automatingregulatory and complianceefforts for financial institutions The AI in wealth managementmarket map Fintech 100: The mostpromising fintech startups of2023 TLDRState ofFintech Your rundown onfintechin Q3’23 $3.5B $7.4B 50% Jump in $100M+mega-roundfunding in Q3'23. 70% 3 New unicorns inQ3'23. FlatQoQ. US fintech fundingin Q3'23. Down 5%QoQ. Increase in digitallending fundingQoQ. Q3’23 fintechfunding. Down 3%QoQ. Like the previous quarter,Q3'23 saw 3 fintechunicorn births. This broughtthe total fintech unicorncount to 312. USfintechsdrove almosthalf (47%) of all quarterlyfintech funding in Q3’23.Asia followed with 27% ofthe quarterly total. Fintech funding fell 3%QoQto hit $7.4B in Q3’23,leveling off after seeingsharp declines in mostquarters since the end of2021. Meanwhile, dealcount fell by 18%QoQ. Fintech mega-roundfunding rose 50%QoQtohit $2.4B across 14 dealsin Q3’23. Despite theupward trajectory, thismarked fintech’s secondlowest quarter for mega-round funding since 2016.Asia surpassed the US inmega-round funding,securing $1.1B across 5deals. The US raised $1Bacross 7 mega-rounds.See the data→ Digital lending saw thelargest funding jump inQ3’23. It was followed byinsurtech(+22%). New entrants to the fintechunicorn club include US-based crypto custodyplatformBitGo($1.8Bvaluation), Asia-basedmicrofinance platformMicro Connect ($1.7B), andUS-basedinsurtechKin($1B). Digital lending’s fundingboost was driven in part bymega-rounds, whichbrought in more than halfof the sector’s quarterlyfunding. India-based dataanalytics solutionPerfiosraised the largest digitallending round ($229MSeries D). While US fintech fundingdropped by 5%QoQto hit$3.5B in Q3’23, Asia-basedfintechssawfunding jump 82% to reach$2B.The majority of Asia’stop 10 deals went to digitallending companies. The fintech fundingstabilization wassupported by $100M+mega-rounds, whichaccounted for 33% offunding ($2.4B) in Q3’23. See the data→ See the data→ See the data→ See the data→ ContentsState of Fintech Collection Spotlights51 PaymentsBankingDigital LendingWealth TechInsurtechCapital Markets Tech Global Trends Investment Trends State of Fintech|Global Trends|Investment Trends Global fintech funding reaches $30.5B across 2,849 deals in 2023 YTD State of Fintech|Global Trends|Investment Trends Funding falls by just 3% QoQwhile deals see an 18% drop State of Fintech|Global Trends|Investment Trends State of Fintech|Global Trends|Investment Trends US quarterly deal share increases 5 percentage points QoQ State of Fintech|Global Trends|Investment Trends VCs lead in quarterly deal share in Q3'23 State ofFintech|Global Trends|Investment Trends Digital lending leads in funding,insurtechleads in dealsin Q3'23 State of Fintech|Global Trends|Investment Trends Global average and median deal size tick down in 2023 YTD State of Fintech|Global Trends|Investment Trends LatAm is the only region that sees median deal size growth in 2023 YTD State of Fintech|Global Trends|Investment Trends Median deal size falls for all investor categories State of Fintech|Global Trend