fintech investment - finnovating · 2020-02-11 · evolution of investment in fintech companies (5)...

BY

February2020

www.finnovating.com/reports/

FinTech Investment Latam 2019

Finnovating®

FinTech Open Innovation Platform that enables the global

collaboration between startups, corporates & investors.

www.finnovating.com/reports/Finnovating Copyright 2020

CEO Letter

Rodrigo García de la CruzCEO of Finnovating

Rodrigo García de la Cruz

Finnovating has been analysing and generating FinTech ecosystems for over 5 years. Our goal is tocreate the largest FinTech Platform connecting 50.000 startups and corporates in the same place.We are proud to be a pioneer once again with the first FinTech investment report in LatinAmerica.

During 2019 we have brought together more than 500 CEOs and founders of startups and scaleupsin the region in our renowned private meetings called Unconferences. This initiative has allowed usto get to know these companies in depth and detect the great opportunities that the regionpresents, highlighting the variety of sustainable FinTech with a great impact on the financial inclusionof society.

Investment in FinTech companies within the region presents a growth of more than 180% in 2019, inaddition to an important growth in the number of companies, situation reflected in the differentmaps made by Finnovating.

For this reason, our Intelligence team has developed this report on the state of FinTech investmentin Latin America, aiming to highlight the great investment opportunities that exist in the region. As anexample, we have selected 8 companies to watch during 2020. These FinTech are in different stagesof growth and investment, all of them providing an important growth potential for their market,growth status and vertical activity.

As a summary, we could say that 2019 has been the year of Brazil but we expect a very positiveyear 2020 in terms of investment, especially for countries like Mexico, Colombia, Argentina, Chile orPeru. We hope that this report will help to encourage investment in Latin America, to have morevisibility for FinTech and that together we will form a unique ecosystem at the global level.Finnovating remains at your disposal to work towards this goal.

"If you want to go fast, go alone, but if you want to go far, go together"

http://www.finnovating.com/

https://www.theunconferences.com/

https://www.finnovating.com/news/

1. Situation in LatamBrief Review of the sector (4)

Evolution of investment in FinTech companies (5)

Top 10 rounds (6)

Ranking of Latam countries (7)

Top rounds per country (8)

Percentages of rounds per range (9)

Investment per FinTech Vertical (10 & 11)

2. Most active VCs Most active VCs (13)Financial institutions (CVC) (14)

3. FinTech to watch 2020 (15)

4. Main countries Analysis

FinTech investment status: Brazil (26)Mexico (28)Argentina (30)Colombia (32)Chile (34)Peru (36)

Table of Contents

Index


1.Situation in Latam 2019


| F inTech Investment Latam 2019 | Situat ion in Latam > 4


Latin American FinTech raised a total of US$2.66 B (US$1.92 B in equity and US$0.74 B in debt) in 94 deals in 2019.Of the 94 rounds, 14 were undisclosed.

Only investments inFinTech and InsurTechcompanies areconsidered. Investmentsin PropTech companiessuch as Quinto andar(US$ 250 M) or Loft (US$70 M) are not included.

July was the month withthe highest investmentvolume, althoughSeptember was themonth with the highestnumber of rounds (12).



Of the 82 investmentrounds in FinTechcompanies in Latam in2019, the top 10represent about 77% ofthe total investment.



Finnovating Copyright 2020

FinTech's investment inLatin America is highlyconcentrated, Brazil andMexico accounting forover 90% by 2019.




Top rounds per country(Investment in Latam 2019)

Argentina

Mexico

Brazil

Chile

The countries with the largest investments inFinTech are Brazil, Mexico and ArgentinaThese three countries accumulate 98% of thetotal investment.

Source: Finnovating

Peru

Colombia



$400 m

$150 m$3 m

$12,5 m

$100 m

$1 m


More than 50% of therounds have aninvestment ticket of lessthan 10 million dollars.

Finnovating Copyright 2020www.finnovating.com/reports/


90% of the totalinvestment wasconcentrated in threeverticals, Neo &Challenger Banks, lendingand payments.



60% of the investment(deals) wasconcentrated in threeverticals, lending,payments and Neo &Challenger Banks.



2.Most active VCs 2019


Nine funds participated inmore than one roundduring 2019, one of themparticipated in 6 (YCombinator).


| F inTech Investment Latam 2019 | Most Act ive VCs > 13


About 10% of the fundsthat have participated inthese rounds belong totraditional financialentities.


| F inTech Investment Latam 2019 | Most Act ive VCs > 14


3.FinTech to watch in 2020


https://www.banwire.com/home/

https://www.billpocket.com

http://www.efisys.com.mx/inicio/

http://enbanca.co

https://www.finsocial.co

https://www.rapicredit.com

https://www.ripio.com/ar/

https://www.vusecurity.com

4.Main Countries Analysis


Brazil


Bruno Diniz(Head of the FinTech Committe)

“Latin America is considered by different globalinvestment funds as a place of great "upside” toinvest. Many challenges are to be overcome inthe región, coming up with solutions representsa great business opportunity. Specially in Brazil,the year 2020 will be crucial in terms ofregulation and infrastructure. Open Banking,Regulatory Sandbox and Instant Payment are themain issues on the agenda for local regulators.All these changes will further accelerate theFinTech revolution in Brazil.”

| F inTech Investment Latam 2019 | Main countr ies analysis > 26


Mexico


Jorge Ortiz(Co-Founder)

“Growing investment in Mexican FinTech sectorreflects 3 circumstances. Lack of adequate financialservices and products for an increasingly demandingpopulation, with strong growth potential.Entrepeneurs professionalization together with anincreased maturity of FinTech offer, and theconfidence of the international investors. Thejuncture of the first two circumstances suggest anexponential growth of the sector in the shortterm.”


Full screen mapFinnovating Copyright 2020

https://www.finnovating.com/news/mapa-fintech-mexico/

Argentina



“In spite of a complicated economic situation in2019, number of companies in local FinTech sectorgrew 67% year-on-year, in an economy wherepractically no sector shows positive balances orprojections.”

“Argentina has different comparative advantages todevelop a technological financial sector whichincreasingly attracts global investment. While bankaccount penetration is high (80%), usage level islow (50%). There are as many smartphones asinhabitants and connection level is above theregional average. On the other hand, according tothe World Bank, Argentina is the 7th country withthe lowest credit placement.”

Mariano Biocca(General coordinator)

Ignacio Carballo (Program director Fintech & Digital Banking UCA)


https://www.finnovating.com/news/mapa-fintech-argentina/

Colombia



Juan Saldarriaga (President Board of Directors)

“Colombia has consolidated itself as thethird FinTech ecosystem in the region rightbehind Brazil and Mexico. However,Colombia is the leader in number of FinTechcompanies per capita. We are very happy asthe foreign investment is increasing and theinvestment funds look at the ColombianFinTech ecosystem as one of the greatestopportunities for development andconsolidation.”

Full screen map

“We have pending tasks in the regulation ofpayments and the industry "deregulation" toimprove innovation and to encouragecollaboration with banks, but overall 2019was a very good year for ColombianFinTech.”


https://www.finnovating.com/news/mapa-fintech-colombia/

Chile



Angel Sierra (Executive Director)

“FinTech sector continued to grow in 2019 from110 to 140 companies (+27%). The approval ofFinTech law is imminent in 2020. From FinteChilewe visualize a very powerful year and full ofopportunities for the sector in the country.”

“Chilean FinTech companies are beginning to lookfavorably for Colombia and Mexico as adestination to scale up their operations.Gradually, traditional financial sector is gettingcloser to the FinTech sector.”


https://www.finnovating.com/news/mapa-fintech-chile/

Peru


Maria Laura Cuya (Association President)

Full screen map


“Currently, Peruvian entrepreneurial ecosystemis clearly expanding. The appearance of morethan one hundred FinTechs is contributing, notonly to the reduction of the financial gap, butalso to the democratization of services bypromoting the arrival of vulnerablepopulations.”

“Another valuable characteristic is diversity. InFintech Peru, there are more than 40% femaledirectors and founders in the regionalecosystem. Regional expansion and greatersophistication in business models in theprocess of internationalization is coming. Withthe new crowdfunding regulation, a world ofopportunity begins.”


https://www.finnovating.com/news/mapa-fintech-peru/

About Us

Related Initiatives

The first FinTechsustainable summitorganized by Finnovatingwill take place in Madridon the 19th of March.


Link to summit

Link to the report


https://www.finnovating.com/es/report/fintech-investment-in-europe-2019/

Accelerating Open Innovation

Finnovating is a Open Innovation Platform as a Service that enables corporations to accelerate their digital transformation using through

investments and collaboration with the best startups & scaleups. We have analyzed more than 5.000 X-Tech and we help them to scale with

corporates, investors and to reach new markets.

We meet more tan 2.000 CEOs and Founders of X-Tech (FinTech, InsurTech, PropTech, WealthTech, RegTech and LegalTech) from +30

countries in our International Unconferences.

We are committed to the SDGs: we have more than 1,000 sustainable X-Tech and launch the FinTech 4 Sustainability Summit.

Open Innovation Platform Open Innovation Ecosystems

Startups & Scaleups Analyzed

+5000

+30Countries In Europe, Latam & North America

Every year bringing together +1.500 CEOs of the most important startups & scalups X-Tech

[email protected] | www.finnovating.com | www.theunconferences.com

https://www.finnovating.com/


https://www.theunconferences.com/fintech-for-sustainability

http://www.finnovating.com/

http://www.theunconference.com/

Follow us at our Unconference(s) 2020

Contacts

Contacts

Rodrigo García de la [email protected]

Santiago [email protected]

Jaime Fernandé[email protected]

Webs

Finnovatingwww.finnovating.com

Unconference(s)www.theunconferences.com

FinTech Plazawww.fintechplaza.es

Disclaimer

This document is for information purposes only and its contents may not be relied upon in supportof any claim or appeal.

Finnovating assumes no responsibility for the information, opinion or action based on such content,regardless of whether Finnovating has made every effort to ensure the accuracy of the informationcontained in its pages.

Finnovating´s data, analytics and insights on FinTech stem from our Deep domain knowledge andthe firm´s propietary database, which has been meticulously and methodically compiled.Finnovating research team assembles and curates this information through primary research and itrepresents years of focus and diligence.

February2020


fintech investment - finnovating · 2020-02-11 · evolution of investment in fintech companies (5)...

Documents