Global venture funding for fintech companies, including payments plays, skyrocketed in 2021 as investors jumped on the digital payments craze. But the flow of venture capital ebbed the following year. 

Since then, fintechs have attracted capital in fits and starts, with the sector seeing a slight revival in interest this year. Second-quarter funding for fintech startups climbed to $8.9 billion, up 19% from $7.5 billion in the first quarter and 11% from $8 billion in the year-earlier quarter, according to CB Insights. 

Stripe, founded in 2009 by the brothers Patrick and John Collison, has become one of the most valuable private fintechs in the world, with a recent valuation of $70 billion, based on a share purchase offer by its long-time investor Sequoia Capital. Patrick Collison is CEO of the company, which has dual headquarters in San Francisco and Dublin, while John Collison is president. 

“In a more favorable operating environment, investors are showing greater confidence in later stage companies than they did in the last 2 years,” the report said. “This is especially true in areas like payments and lending, where mid- and late-stage rounds make up 27% and 35%, respectively, of deals [year-to-date].”

Two other U.S. payments firms also benefited from significant fundraisings during the second quarter. New York-based corporate card and bill payment company Ramp attracted $150 million and Covina, California, property management payments processing firm Guesty landed $130 million, according to the CB Insights report.

By Lynne Marek on July 17, 2024
Original link