After a second-quarter marked by a global economic slowdown, the fintech sector has discovered the changes in everyday habits – personal or professional – and how electronic payment tools have taken over the world of finance.
Companies like Square and PayPal are competing with banks, neo-banks are imposing their model, and central banks are so afraid of crypto-currencies that they are sounding the alarm to develop a CBDC.
It is not for nothing that the third quarter doubled the overall amount raised by fintech companies around the world compared to the previous quarter. According to Canaccord Genuity analyst Joseph Vafi, companies raised a total of $6.7 billion.
This is a far cry from the $16.5 billion raised in Q2 2018, but the last three months of the fiscal year ranked second in the last three years. A nice score. But what’s the top 3 most important fundraisers?
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The Fintech categories best-financed in Q3 2020
Of the $6.7 billion raised, the ten largest transactions are characterized by a wide variety of business lines. The presence of three neo-banks and a specialist in bank cards for minors can be observed.
The assurtech sector is doubly represented. This is followed by a round of meetings for a peer-to-peer financing company, micro-credit, and bond trading. And finally, from an online broker to a record-breaking financing company.
Number 3: Bright Health makes health insurance shine
Let’s take a look at the top 3 major financing deals of the third quarter 2020 in the fintech sector. Starting with Bright Health, which raised $500 million in its latest round. By reducing costs and providing a more transparent and flexible customer experience, the company capitalizing on health insurance claims to generate $1.2 billion in net annual revenue. Founded in 2016, the company reports having raised $1.5 billion in equity financing to date.
Number 2: Klarna Bank, a European fintech that has exceeded $10 billion in value-added
It is the first European fintech to have exceeded $10 billion in value-added. Klarna Bank, as its name suggests, has a banking license. The Swedish fintech company raised $650 million during the quarter, for a total of $2 billion since its launch fifteen years ago. In particular, it is taking advantage of a payment financing offer that allows it to make purchases and pay later.
Number 1: Robinhood, the fintech of all records in 2020
The growth of Robinhood is dizzying, but its rounds of financing are even more so. By 2020, Robinhood is still raising money. Its most recent transaction raised $660 million. Its $2.2 billion in new money from its investors was almost half raised this year.
The company offers a free, commission-free trading platform that appeals to the United States. Last August, its last census counted no less than 13 million customers.
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