State of FinTech

2021
Annual edition – short version

MARCH 2021
 Snapshot of 2021 FinTech & InsurTech ecosystem

Copyright © 2022 by Boston Consulting Group. All rights reserved.

+60% M&A deals carried out globally by Corporates, Incumbents
and FinTechs/InsurTechs looking to expand operations,
-31% Record number of FinTech & InsurTechs going public
via traditional IPO and SPAC have under performed
YoY M&A FinTech/InsurTech in their first year listed
share of wallet, and strengthen tech/product offering
transactions market performance1
1. Performance measure by share prices from 1st JAN 2021 to 31st DEC 2021
Note: 2021 figures not completed at 100% and are subject of data variations, specially on number of deals. Funding rounds >$100M 1
Source: BCG FinTech Control Tower
In 2021, FinTechs & InsurTechs globally raised ~$131B , ~2.8x the funding
activity from 2020
Total funding and number of mega rounds monthly evolution (2018-'21) 106
98 96
72
+177%
35,337 35,337 Funding growth
28 31 27 31 29 33,450
19 21 26 25 22 compared to
13 15
31%
2020
33%
26,936 30%
68%
33% Weight of
mega-rounds in
funding during
13,278 13,387 13,144 2021

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11,301 11,112 11,419 10,394 10,378 67% 69%
9,287 70%
7,771 8,317 8,935
44% 44% 52%
40%
60% 53%
42% 53% 67% +241%
61% 64% 60% Number of
69%
56% 56% 60% 58% 47% Mega-deals
40% 48% 40% 47%
31% 39% 36%
compared to
Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’211 Q2’211 Q3’211 Q4’211 2020

Non Mega-deals Mega-deals # of Megadeals

1. 2021 figures not completed at 100% and are subject of data variations, specially on number of deals Note: Funding excludes Ant Financial, Du Xiaoman Financial and JD digit
funding rounds. Equity funding deals received globally, excluding M&A and IPOs, with an informed HQ location
Source: BCG FinTech Control Tower 2
Average ticket size has increased to ~2.3x over the size registered in 2020,
with Series A and C rounds experiencing the largest increase
Average YoY growth
size 2021 ('21-'20)
Average ticket size ($M)

250 ~$250M +51%

+95%
YoY growth
on average
200
ticket size for
early-stage1
deals in 2021
150 ~$155M +84%

~$100M +93%
100

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~$45M +72%
~$250M
50 Average
ticket size for
~$18M +103% Series E+
deals in 2021
0 ~$2.5M +88%
2016 2017 2018 2019 2020 2021

Seed/Angel Series A Series B Series C Series D Series E+

1. Seed/Angel and Series A deals

Notes: Only equity funding deals with informed detail on the deal stage (seed/angel, series A/B/C/D/E+)
Source: BCG FinTech Control Tower 3
AMERICAS based players have accumulated ~58% of total funding raised globally
in 2021, followed by EMEA (~26%) and APAC (~16%)
Regional no. of mega-deals1 and total equity funding raised ($M)

AMERICAS EMEA APAC

65 57 54 25 25 24
48 22 17
15 8 9 9 11
18 17 15 17 20 17 6 7 5 5 4 5 6
3 3 0

19,470 19,558 19,763

17,393
28% 33% 29%
26%

10,208
8,818
7,973 27% 8,123 7,607
7,139 6,392 30% 6,727

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6,479 6,481 72% 71% 2,433 32% 35%
5,665 5,466 38% 74% 67%
65% 2,659 41% 4,138 3,853 38%
42% 42%
50% 41%
56%
49% 3,134 2,674
3,360
73% 2,507 30% 3,144 3,761
35% 2,150 70% 2,239 2,043 30%
58% 58% 62% 56% 74%
52% 59%
68% 1,586 54% 48% 65% 62%
50% 59% 44% 83% 68% 70% 58% 43% 70%
51% 44% 26% 48% 17% 32% 42% 57% 46% 52%
Q3’19

Q4’19

Q1’20

Q2’20

Q3’20

Q4’20

Q1’21

Q2’21

Q3’21

Q4’21

Q3’19

Q4’19

Q1’20

Q2’20

Q3’20

Q4’20

Q1’21

Q2’21

Q3’21

Q4’21
Q3’19

Q4’19

Q1’20

Q2’20

Q3’20

Q4’20

Q1’21

Q2’21

Q3’21

Q4’21
190%1 71% 196%1 68% 118%1 59%
Increase in funding Weight of mega- Increase in funding Weight of mega- Increase in funding Weight of mega-
(2021 vs 2020) deals in 2021 (2021 vs 2020) deals in 2021 (2021 vs 2020) deals in 2021
Equity funding from non-mega rounds Equity funding from mega rounds Number of megadeals
1. 2021 figures not completed at 100% and are subject of data variations, specially on number of deals. 2. number of deals expected to have 10-15% variation in each region
Note: Funding excludes Ant Financial, Du Xiaoman Financial and JD digit funding rounds. Equity funding deals received globally, excluding M&A and IPOs
Source: BCG FinTech Control Tower 4
NAMR and EU continue to dominate global funding attracting ~74%, while LatAm
consolidates as leading emerging Hub ($9.1B in funding in 2021)
Total funding and number deals raised globally in 20211

Asia ~$19.5B ~814

Funding Deals
NAMR ~$67B ~1,723 Europe3 ~$30.2B ~1,085
Funding Deals Funding Deals 129% 62% ~57
Funding YoY Weight of Number of
181% 70% ~198 190% 72% ~80 growth megadeals4 megadeals
Funding YoY Weight of Number of Funding YoY Weight of Number of
growth megadeals4 megadeals growth megadeals4 megadeals

ME ~$1.6B ~148
Funding Deals

140% 7% 1

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Funding YoY Weight of Number of

LatAm2 ~$9.1B ~293 Africa ~$1.7B ~123

growth megadeals4 Mega-deals

Funding Deals Funding Deals

285% 75% ~26 664% 65% ~6

Funding YoY Weight of Number of Funding YoY Weight of Number of Oceania ~$1.7B ~112
growth megadeals4 megadeals growth megadeals4 megadeals Funding Deals

45% 30% ~4
Funding YoY Weight of Number of
growth megadeals4 megadeals

1. 2021 figures not completed at 100% and are subject of data variations, especially on number of deals. 2. LatAm includes Mexico and Caribbean. 3. Europe includes UK and
Russia. 4. Weight of mega-deals based on funding over total investment. Note: Funding excludes Ant Financial, Du Xiaoman Financial, and JD digit funding rounds. Equity funding
deals received globally, excluding M&A and IPOs. Total funding and deals discrepancy is due to the fact of companies with no informed HQ location accounting for 45 deals and 5
~$95M in funding
Source: BCG FinTech Control Tower.
Top 10 funding concentration in emerging hubs denotes its maturity stage,
while largest Hubs are less sensitive thanks to its diverse and rich ecosystem
2021 YoY funding growth (%)

800 Leading Hubs (NAMR, EU and Asia)

>50% accounting in 2021 for 89% of total
Funding from funding, while its exposure to top
on top 10 10 players funding is <30%
players Africa
600

Latam has consolidated as the

leader emerging hub across the
400 regions raising ~$9.1B in 2021,
although 58% of its funding in 2021
NAMR

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comes from top 10 players
Europe LatAm 177%
Average YoY
200 funding growth ME, Oceania FinTech activity has
Asia Middle East grown under average market rate
(<181%). Africa has experienced the
Oceania largest growth (664%) as it's more
0 sensitive to funding concentration on
0 10 20 30 40 50 60 70 80 90 top10 players (>80%)
Leading hubs Emerging hubs 2021 Funding from Top 10 players (%)

Note: Funding excludes Ant Financial, Du Xiaoman Financial, and JD digit funding rounds. Equity funding deals received globally, excluding M&A and IPOs. Total funding and deals
discrepancy is due to the fact of companies with no informed HQ location accounting for 45 deals and ~$95M in funding 6
Source: BCG FinTech Control Tower.
T&I sees 289% YoY growth in investment, driven by Trading & Investments
Retail Brokerage & Digital Assets Fueled by 57 mega-rounds, totaling
$16.9B and accounting for 68% of
all capital invested over the period.
Retail Trading & Brokerage ($11.2B)
attracted the most investment
whilst Digital Asset Custody saw the
highest YoY growth (827%)
The record investment levels into FinTech
firms are a direct result of increasing
frequency ofAccounts
$100M+ rounds
Digital Banking players attracted the
largest amount of investment in the
cluster ($12.3B), followed by SME
Since 2013, mega-rounds1 have become a
dominating accounting
trend, withsolutions (~9.4B), seeing

Copyright © 2022 by Boston Consulting Group. All rights reserved.

an increasing
percentage YoY growth
of cash of to
going 482%, driven by
established
Business
players in larger Process
single roundsAutomation &
Payroll specialists

Payments
In comparison, non mega-round
87 mega equity
rounds ($21.1B) drove
financing amount has remained relatively
growth, accounting for 76% of all
steady sinceinvestment
2015 in 2021. Cryptocurrency
Payments (503%) & Online
1. Data for 2021 is not completed at 100%, number of deals are estimated to be 10-15% higher than the number Payments Gateways (307%) saw
reported while funding may vary between 1-3% Note: Funding excludes Ant Financial, Du Xiaoman Financial, and JD highest YoY growth
digit funding rounds Companies with an informed HQ location. M&A and IPO funding has not been considered. 7
Source: BCG FinTech Control Tower
FinTech and InsurTech 2021 M&A mosaic | Small, mid-size and major M&A
transactions have shaped the ecosystem in 2021 Illustrative
Q1 2021

Q2 2021

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Q3 2021

Q4 2021
Note: illustrative map of M&A FinTech and InsurTech transactions announced and executed in 2021 8
Source: BCG FinTech Control Tower
FinTechs and InsurTechs listed in 2021 have underperformed registering an
average of -31% price drop by the end of the year
2021 Market performance (%)

100

50

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0
Jan-01-2021 Jan-01-2022

S&P 500 NASDQ FinTech & InsurTech index

-50

Note: companies have gone public on different dates explaining

fluctuations throughout the series for the Fintech index

1. The Fintech & InsurTech index has been calculated based on yearly performance of the following companies listed in 2021: Affirm, AlingM, Alkami, Avidxchange, Bakkt, Blend,
Blender, Bright, Clearwatter, Coinbase, dLocal, Enfusion, Expensify, Flywire, Forgerock, Hippo Insurance, Kakobank, Lendinvest, Linklogis, Marqeta, Metromile, Moneylion, NuBank,
Oscar Health, Paymentus, Paytm, PensionBee, Quicklizard, Remitly, Riskified, Robinhood, Safello, Sofi, Truststamp, Toast, Uipath, Wesure, and Wise.Note: SPAC performance before
merging with the target is not included on the analysis
Source: Capital IQ; BCG FinTech Control Tower 9
Please contact the BCG FinTech Control Tower
team for further analysis & access to the
FinTech insights platform

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