The FinTech sector is setting records. Capital investment is at record levels with no signs of slowing – even stronger than our outlook for 2021 predicted. A few stats to put things in context:
\As we noted at the end of the dark 2020, we made what seems like an obvious call now…
"Crystal Ball: If this much financing energy is happening in a pandemic, imagine the post-vaccine world? The formula for more seems very linear."
The trends are only getting stronger. We are now seeing an acceleration of these early stage high risk ventures reaching super-size – and more appear to be coming through the venture pipeline. Fundamentally, we see venture as a leading indicator of future trends and FinTech continues to be one of the largest areas for venture investment and performance.
Full steam ahead for this year – and if patterns of history repeat, we could see elevated investor activity well into 2022 and 2023. Looking back at the Spanish Flu during 1918 – 1920, arguably the most recent time in which the world completely shut down, the United States experienced a tremendous recovery.
Using history as precedent, it seems a good bet that economic growth and activity will be bountiful in the years that follow – which bodes well for the M&A outlook.
Sources:
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