KPMG: Fintech is close to 100 billion dollars of investments in just six months

Fintech investments globally reached $ 98 billion with 2,456 deals in the first half of 2021, approaching last year’s annual total of $ 121.5 billion in 3,520 deals. The KPMG Pulse of FinTech report defines how mergers and acquisitions continued at a pace of $ 40.7 billion in 353 deals in H1 21, compared to $ 74 billion in 502 deals throughout 2020. Late-stage venture valuations have more than doubled year-on-year, rising from 135 million in 2020 to 325 million at the end of the first half of 21. Corporate participation in VC investments in fintech was incredibly strong in the first half of 21, with $ 20.8 billion in investments globally. Both the Americas ($ 13 billion) and the EMEA ($ 5 billion) have seen record levels of investment. Global cybersecurity investments hit a new annual record mid-year, rising from $ 2.2 billion in 2020 to more than $ 3.7 billion in the first half of 2021. “During the first half of 2021, we have seen growth interest in fintech at a feverish level in most regions of the world. As we head into the second half of the year, this extraordinary momentum is expected to continue. Here are KPMG’s best predictions for fintech in 2021 ”.1. Cryptocurrencies will be the focus of investors’ attention. The explosion of activities in blockchain and cryptocurrencies will continue extending to the entire crypto ecosystem: from cryptocurrencies and platform trading to NFTs, to trading in alternative assets. M&A business will continue to grow as companies seek to expand their capabilities and offerings and fintechs are ready to scale every growing industry with big deals. The SPAC, acronym for Special Purpose Acquisition Company, or those companies that are established with the aim of allowing a collective investment and then be incorporated, through a merger, with an existing company, will have more and more weight. Notably, Grab’s $ 40 billion SPAC merger is moving forward and we will also likely see a proliferation of US SPACs looking to the EMEA and Asia Pacific market. Cybersecurity is likely to gain even greater importance given the rise in digital transactions and the resulting increase in cyber attacks and ransomware. Cybersecurity is an area of ​​interest for investors, especially businesses, including password-less security. 5. B2B services will attract the attention of all fintech sectors, especially in areas such as insurtech, wealthtech and regtech. 6. Partnership models will be a fundamental means for companies seeking to expand their service offering. We will likely see partnerships emerging across the fintech sector, from wealthtech to insurtech, through the involvement of companies and large financial platforms.