TLDR:
- Payments startups drew $2.2 billion in funding globally in Q2
- Stripe leads the way with $694 million in funding during the quarter
An analysis by CB Insights reveals that payment startups, particularly Stripe, have experienced a fundraising recovery in the second quarter of the year. Global venture funding for fintech companies, including payments, saw an increase in Q2 with $2.2 billion in funding, up from the first quarter and the year-ago quarter. Despite the increase in funding, the number of fundraising events for payment companies decreased compared to previous quarters.
The surge in venture capital was largely driven by Stripe, which secured $694 million in funding during the quarter. Stripe, founded by the Collison brothers, has become one of the most valuable private fintechs with a recent valuation of $70 billion. This revival in fundraising activity indicates a growing confidence in the payments sector among investors, particularly in later stage companies.
In addition to Stripe, two other U.S. payments firms also benefited from significant fundraising rounds in Q2. New York-based Ramp attracted $150 million, while Guesty, a property management payments processing firm from Covina, California, landed $130 million. Overall, the positive trend in fundraising for payment startups signals a renewed interest and confidence in the sector.
