The fintech sector continues to show growth and innovation. At the same time, it is not an industry that is dominated by the biggest names. Innovation and a creative approach to technology allows smaller start-ups to compete toe to toe with more established brands. This makes it a very popular choice for those looking for the highest growth investment opportunities.
Venture capital funding of fintech start-ups topped $32 billion globally in 2018 according to CB Insight. At the same time, in 2018 there were 30 fintech exits in the US at over $7 billion in value. M&A activity is expected to accelerate as financial services incumbants acquire emerging fintech companies in an effort to stay competitive. With more fintech unicorns than any other industry vertical, fintech is widely tipped to remain one of the highest returning VC sectors with no shortage of high potential areas to disrupt in financials services.
For investors that have not already jumped on the fintech bandwagon, fear not as the next wave of value creation from younger fintechs could well be even bigger than the first.