Fintech companies raised a record $30.8bn (£22.4bn) in the second quarter of this year, across 657 deals, a new report has found.
Market intelligence firm CB Insights revealed that the second quarter was the largest on record for fintech funding volumes, surpassing $22.8bn across 614 deals in the first quarter.
Digital lending firms saw their funding increase by 78 per cent quarter-on-quarter to $7bn.
The report said “mega-rounds”, meaning deals worth $100m or more, drove the funding boom, with global fintechs raising 88 of these deals, up from 60 in the first quarter, and accounting for 70 per cent of the total funding.
As a result, the average deal size rose by 28 per cent from nearly $37m in the first quarter to $47m in the second.
South America led growth in both funding and deal count with finance to South America-based fintechs rising by 153 per cent quarter-on-quarter and deal activity rising by 52 per cent from the previous quarter.
On a global level, all continents saw increased funding volumes. However, the number of deals grew in North America, South America, and Australia, but dropped in Asia, Europe, and Africa.