Europe outperformed Asia in investment in technology finance companies and India overtook China, where the increase in regulatory oversight drove this type of investment down 89 percent.

According to a report by CBInsight, technological market analysis consultancy, global investment in fintech of venture capital companies reached 6,300 million dollars in 445 operations in the first quarter of the year.

The number of transactions increased 4% quarter-on-quarter but the volume of funds fell 13% according to this data, which reflects that the leadership in this type of investment remains concentrated in the United States, where 3,300 million dollars were invested in 170 operations.

Europe beat Asia in terms of financing volume, since it attracted 1,700 million dollars, compared to 803 million in the fourth quarter of 2018, in 102 operations (120 in the previous quarter).

The increase in regulatory pressure in China meant that investment in Asia as a whole fell for the first time in five quarters, to below 1 billion dollars, specifically 875 million, with a decrease of 67% over the same period. previous quarter, in 127 operations. 

In China, the drop was 89% over the previous quarter, to 192 million dollars, while the investment of venture capital companies in India reached 286 million dollars (225 million in the fourth quarter of 2018) in 29 operations. 

Within Europe, the United Kingdom leads the ranking with a volume of 645 million dollars (88% more than in the fourth quarter of last year), followed by Germany, with 588 million, 248% more.

The study also reflects that investors bet to a greater extent on companies that are already in more developed phases and for the so-called “unicorns” (technological ones that reach a value superior to the 1,000 million dollars), where the investment represents 8% of the total (compared to 5% in the previous quarter). 

At the end of the first quarter of 2019, there were 41 “unicorns” in the world, with a combined value of 154,100 million dollars. In April, three other “unicorns” have been added to this list. 

In 2018, investment in fintech by venture capital companies reached $ 40.3 billion in 1,829 operations, well above the data for 2017, when the funds totaled $ 18.3 billion in 1,564 operations. 

Source: The Economist