Venture capital-backed financial technology companies raised a record $39.57 billion from investors globally in 2018, up 120% from the previous year. Funding was raised through 1,707 deals, up from 1,480 in 2017, the research said. The surge in funding was due in large part to 52 mega-rounds, or investments larger than $100 million, which were worth $24.88 billion combined. Venture capital investors have been pouring billions of dollars into fintech companies, in the hopes that they can gain market share from incumbent financial institutions by offering easier to use and cheaper digital financial services. FinTechs have emerged globally across all sectors of finance, including lending, banking and wealth management. In the United States, fintechs raised a record $11.89 billion through 659 investments, while the number of deals dropped in Europe, but funding reached a record $3.53 billion.

(ET Tech)