The fintech industry has gained mainstream adoption among major venture capital investors in recent years.
Sequoia Capital and Andreessen Horowitz (a16z) are perfect examples of investors recently focusing on fintech and making the sector their investment choice.
VC Firms Made Fintech Their Top Investment Sector
According to the CB Insights report published earlier this year, Sequoia Capital, an American venture capital firm, and Andreessen Horowitz, a private venture capital firm, invested more in fintech than any other sector in 2022.
The venture capital firm Sequoia Capital seeded over 100 fintech investments last year despite the global market downturn that left many projects in massive losses.
The Fintech sector represented more than 30% of the total investments.
On the other hand, Andreessen Horowitz a venture capital firm backed by billionaires Marc Andreessen and Ben Horowitz, remained resilient and proactive last year.
According to the report, the VC firm, also known as a16z, inked more than 206 investment deals in 2022.
Market data found that Sequoia Capital funded over 25 companies last year, emerging as the top three companies investing more in the fintech sector. It focused on capital markets, payment, and payroll sectors.
Sequoia and a16z Fintech Investments in 2022
Sequoia Capital participated in various funding initiatives, including raising $1.2 billion in Citadel Securities’ Seed round, Capitolis’ $110 million Series D, Watershed’s $70 million Series B, and Ledgy’s $22 million Series B.
In turn, Andreessen Horowitz backed 49 companies in the fintech last year, emerging among the top three. The venture capital firm invested in payments (28%), blockchain (22%), and digital lending firms (12%).
Andreessen Horowitz participated in various fintech investments last year – the venture capital firm took part in SpotOn’s $300 million Series F, Jeeves’ $180 million Series C, and Tally Technologies’ $80 million Series C.
Based on the report, Sequoia also made some investments in payment tech companies last year. Sequoia raised Klarna’s $800 million financing, Yokoy’s $80 million Series B, Telda’s $20 million seed round, and Cococart’s $4 million seed financing.
In the crypto sector, Andreessen Horowitz focused more on funding digital lending companies. In this case, Andreessen Horowitz raised Point Digital Finance’s $115 million Series C, Valon’s $60 million Series B, and Vesta’s $30 million Series A.
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