European and North American fintech companies raised a total of $8.9 billion in VC capital in Q3 2020, a 17% year-over-year (YoY) increase.
However, according to the research data analyzed and published by Comprar Acciones, there were only 414 deals closed during the period, the lowest level of activity since Q3 2017.
Based on a CB Insights report, 54% of all VC money flowing into the US in Q3 went into mega-rounds. There was a total of 88 mega-rounds in the period, receiving a total of $19.8 billion, compared to 1,373 rounds that received below $100 million.
Stripe Gains $13.5 Billion in Post-Money Valuation Following $850 Million Series G Round
PitchBook data reveals that 69% of the total deal value in 2020 came from late-stage deals. These late-stage deals account for only 22% of the number of rounds completed. As of September 30, 2020, 2,535 late-stage companies had received $78.2 billion.
Stripe is the top company by post-money valuation gain in 2020. After an $850 million Series G round, its valuation shot up by $13.5 billion. Space X is second, with a $10.15 million gain and Chime is third with $8.55 million.
Chime secured two deals during the year valued at a cumulative $1.2 billion. These deals sent its post-money valuation to $14.55 billion. As a result, it overtook Robinhood to become the most valuable VC-backed consumer fintech in the US.
Instacart had the fourth highest gain that sent its valuation to $17.7 billion. It became the most valuable VC-backed food provider in the US in October 2020.
VC funding to US-based companies reached $36.5 billion in Q3 2020 according to CB Insights. The figure rose by 22% YoY and 30% quarter-over-quarter (QoQ), marking a 7-quarter high. Deal activity, however, dropped by 11% YoY from 1,647 transactions in Q3 2019 to 1,461 in Q3 2020.