Fintech Funding in Asia Suffers Under Coronavirus Impact
Once a bright spot in many VC firms’ portfolios, Asia’s fintech sector has struggled to raise capital this quarter. According to a report from S&P Global Market Intelligence, the industry saw a significant drop in deals closed, due to the combination of COVID-19’s macroeconomic impact and new rules on inbound investment in India.
The amount of venture capital raised by fintech firms in the Asia Pacific region dropped 58.5% consecutively, to $1.3 billion in the first quarter.
S&P points to major losses at Softbank’s Vision Fund, and its struggles to attract new investment for future funds as “an indication that technology startups around the world will face difficulties in raising money in the months ahead.”
Photo courtesy of Engin_Akyurt.