Just last week, Revolut raised $500 million in funding at a $5.5 billion valuation—three times the valuation of its last fundraising round in 2018. Jumo, a South Africa-based financial services startup, also raised $55 million in fresh capital from Goldman Sachs, Odey Asset Management and LeapFrog Investments. And Starling Bank raised £60 million ($77.8 million) in funding.
Today, Public, a New York-based commission-free stock trading app,raised $15 million in funding.Accel and Greycroft co-led the round, and were joined by investors including Dreamers VC and Advancit Capital.
And Monzo and Monese are reportedly both in talks to raise up to £100 million ($129 million).
As early-stage investor Howard Lindzon explained, a multiplier of “fresh” fintech money is being unleashed on a world that will push valuations even higher. Nearly half of all capital raised by fintech
startups was concentrated in 83 mega-rounds (those sized $100 million or more).
to CB Insights, 2019 was a record year for mega-rounds across the globe.
It’s a crowded, competitive market, and people have speculated that we’re in a fintech bubble. But I think there’s more room to grow. More and more fintech companies are catering to emerging markets like South America, Africa, Australia and Southeast Asia, which all topped their annual highs last year.
Curious to hear what you guys think about the fintech boom. Will valuations continue to swell or will we see a burst in the near future? Reply to this email with your comments, and they might be included in a future issue of Term Sheet.
FEMALE FOUNDER FUNDING: 2019 was a net positive year for female founders. The share of VC dollars that flowed into startups founded by a woman or a group of women crept up over 2019, hitting $3.54 billion, or 2.7% of total investment. Buuuuuuut…then you put that number in context and realize that SoftBank poured at least $5 billion just into one company: WeWork. That’s roughly $1.5 billion more than the total VC investment in all female-founded companies during the same period. Read more at Fortune.