Global fintech funding steadily rose in Q3 2020 - Business Insider

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Later-stage fintechs that offer digital solutions to mitigate the impacts of the pandemic continue to net large funding rounds

for the option to buy products now and pay over time with monthly plans; helping point-of-sale lending providers Klarna and Affirm to secure the largest raises in Q3. At the same time, health and business continuity concerns have driven mega-rounds for insurtechs, with Bright Health netting $500 million, followed by small business insurer Next Insurance with $250 million, and health insurtech Waterdrop with $230 million.

And early stage startups are back in investors' purview. Seed deals have bounced back to 147 from 90 in Q2, which saw smaller fintechs being left behind as investors focused on later-stage fintechs within their existing portfolios. But with larger players now selling equity at a higher value, many investors likely turned their attention back to early stage startups in hopes of identifying a future winner at a low price tag.

To maximize their chances of attracting renewed investor interest, early stage startups should capitalize on the latest fintech trends, such as the growing B2B sector. With changing consumer and staff working from home, financial services providers are looking to enhance their digital capabilities, presenting partnership opportunities for B2B fintechs that can provide expertise and bring new solutions to the market at a quicker pace.

, for example, raised $32 million in Series A funding this quarter thanks to connecting digital brands to banking partners. with auto insurtech Acko—and partnering with such globally recognizable brands would very likely yield high investor confidence. Early stage fintechs should therefore assess whether adding a B2B arm could offer better funding opportunities.

 

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