FT Partners Publishes Q3 2023 FinTech Insights – Financing, IPO & M&A Dollar Volume Increases While Total Deal Count Declines
Steve McLaughlin
Founder / CEO / Managing Partner at Financial Technology Partners / FT Partners / FinTech Partners
FT Partners Research is pleased to announce the publication of our Q3 2023 FinTech Insights report, providing the most comprehensive review of global FinTech deal activity with analysis across private company financings, IPOs, and M&A transactions.?
Executive Summary:
FinTech deal activity volume, across financing, M&A and IPOs, grew for the second quarter in a row, potentially indicating that the bottom may have been hit back in Q1 2023. Still, broader economic concerns continue to percolate, and gains are slim. Specifically, volume grew 27% over Q2 2023 totaling more than $44 billion, reaching close to the level from a year ago in Q3 2022 ($47 billion). Q3 2023 FinTech deal activity boasted quarter-over-quarter increases for $100 million+ capital raises, $1 billion+ M&A deals and at least some IPOs, potentially signaling a return of later-stage activity.
On the private capital raising front, the majority of investor activity continued to occur in the early-stage arena. In Q3 2023, 46% of funding rounds totaled $5 million or less compared to 39% in Q3 2022 and 29% in Q3 2021. Despite there being more smaller-sized rounds overall, the median size of both Series A and Series B rounds actually increased in Q3 2023 over the year ago period.
One particular area of FinTech experienced a big swing – InsurTech funding surged to $2.7 billion during the quarter, representing a quarter-over-quarter increase of more than 130% and the highest volume for any FinTech sector in Q3. The Banking & Lending Tech sector as well as the Crypto & Blockchain sector also experienced more minor increases in quarterly funding volume.
Private equity buyouts took center-stage during the quarter with several large transactions that helped boost M&A volume. The most notable, GTCR’s $18.5 billion acquisition of a majority stake in Worldpay from FIS, made up more than half of the volume in the quarter.
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The IPO market returned in Q3 with several prominent Tech IPOs, though market debuts and performances have thus far been lackluster. In FinTech specifically, CAB Payments’ IPO on the London Stock Exchange in July marked the first large FinTech IPO in many months, with the Company raising $426 million in gross proceeds. In India, conglomerate Reliance Industries spun-off its FinTech arm, Jio Financial Services, as a public entity valued at approximately $20 billion at the time of the IPO.
The Report Features:
FT Partners' data, analytics, and insights on FinTech stem from our deep domain knowledge and the Firm's proprietary database, which has been meticulously and methodically compiled. The FT Partners Research Team assembles and curates this information through primary research and it represents years of focus and diligence. We believe this report provides the most complete set of global FinTech transactions, trends, and insights, and we are proud to release this information to our clients, partners, friends, and the FinTech sector globally.
In case you missed it, be sure to register for our upcoming FinTech in India VIP video conference on Thursday, November 2 at 7:00pm IST / 1:30pm UK / 9:30am ET, featuring panelists from Stashfin, BharatPe, CRED, Accel and Open Financial Technologies. Following our video conference, we will provide you with a link to our new in-depth industry report, which includes key opportunities and challenges for FinTech in India, a proprietary list of M&A and financing transactions in the country, 25+ exclusive executive interviews, and a detailed company landscape. Please see more details and register here .
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