Fintech Investments Review and Outlook
2021 Review
Global fintech investments amounted to US$ 132 B with key investment focus on digital banking, payment and crypto infrastructure.
Exhibit 1: Global Fintech Investments 2015-2021 (Source: CB Insights)
Highlights of the report
- Fintech continued to be a key industry for venture capital investments in 2021. Global Fintech investment increased by 6X in the past seven years. Total investment in fintech startups made up ~20% of total investment and reached US$ 132 bn in 2021 (Exhibit 1). The US accounted for 40% of total investment, followed by Europe, China, and Southeast Asia.
- Outlook: significant investment and value creation opportunities in Fintech as the critical technology and enabler for "Exchange of Value" in Web 3.0
- Outlook on China: opportunities for enterprise solution/SaaS startups servicing financial institutions and capital markets
Summary
Attractive investment opportunities in Fintech which is too important to miss for asset allocators
As Web 3.0 technology matures and the post-pandemic economy recovers, fintech will remain the focus of venture capitals and investment funds globally in 2022. The interesting themes to us include: enterprise solutions and SaaS for financial institutions in China, inclusive finance for the underbanked population in SEA, and digital asset infrastructure supporting the growth of Web 3.0.