Fintech and Insurtech Transactions by USA-Based Investors

Fintech and Insurtech Transactions by USA-Based Investors

Since 2020, over $568 billion has been invested in financial technology (fintech) and $33 billion in the insurance technology (insurtech) sectors by USA-based investors.

The convergence of finance and insurance with technology presents both unprecedented challenges and extraordinary opportunities. As these sectors continue to redefine traditional financial and insurance services, understanding the investment landscape becomes crucial for investors, industry players, and stakeholders. 

This report provides a comprehensive analysis of investment activity in the fintech and insurtech sectors by USA-based investors. The data set analyzed focuses on capital deployment, transaction types, geographical distribution, and investor preferences within the industry. By analyzing the data and trends from Q2 2020 to Q1 2023, this report reviews the dynamic landscape of fintech and insurtech investments, offering insights into market dynamics and growth opportunities.  

  • The fintech industry has received over $568 billion from USA-based investors over 13,616 transactions, with an average deal size of $41 million since Q2 2020.
  • The first quarter of 2022 saw the largest capital deployment of $102 billion in the sector over the period. Square, a California-based payment platform, significantly contributed to that by acquiring Australian-based Afterpay for $28 billion. 
  • From the fourth quarter of 2020 to Q1 2023, investment numbers have kept a steady pace, with Q3 of 2022 being the quietest quarter so far.
  • USA-based investors have focused heavily on domestic opportunities, deploying $353 billion (62%) within the United States, particularly in cities like New York, San Francisco, and Boston, known for their robust financial sectors and startup ecosystems.
  • The United Kingdom has received significant investment from USA-based investors, accounting for 10% of capital received in the sector, totaling $57 billion. This is due to the established financial markets and supportive regulatory environments.
  • Fintech markets in Asian countries like India (2%) and Singapore (2%) have attracted $11 billion from USA-based investors. These countries have witnessed rapid growth in their fintech ecosystems, increasing smartphone penetration, and rising demand for digital financial services.
  • USA-based investors deployed $193 billion through mergers and acquisitions within the fintech sector. Established companies enhance their market position, expand their product offerings, or gain a competitive advantage through domestic and international acquisitions.  
  • Venture capital investments contributed 14% of capital deployed by USA-based investors in the fintech sector over the period. The $80 billion deployed could illustrate the growth potential of the sector and the focus on disruptive technology.
  • USA-based private equity firms deployed $266 billion (47%) in fintech companies. These investments typically involve larger funding amounts and may target companies in later stages of growth.
  • The insurtech market has received $33 billion in the last three years, with a total of more than 900 transactions from USA-based investors. The average deal size in the period was $36 million.
  • The first quarter of 2021 saw the largest deal count and capital invested. Conforming to an insurtech briefing from Willis Towers Watson, the largest funding rounds included companies like Next Insurance, Coalition, Zego, Sidecar Health, Pie Insurance, Clarify Health, and Corvus Insurance.
  • As in 2020, the current insurtech market continues to see advancements in areas such as artificial intelligence, machine learning, or data analytics. The COVID-19 pandemic had a significant impact on the insurtech industry in 2020, driving the need for digital transformation and highlighting the importance of resilience within the insurance sector.
  • United States-based investors deployed $20 billion (62%) of the industry’s capital  markets investments, becoming a significant hub for insurtech investments.
  • Countries like India and Singapore have experienced a surge in insurtech investments The $3.4 billion (8% and 3% respectively) deployed among those two countries is due to the strong investment environment created by the region’s large population, growing middle class, and increasing digital adoption.
  • The United Kingdom and Germany contributed 10% and 4% respectively to the investment pool, receiving a total of $4.6 billion from USA-based investors.
  • Private equity firms have increasingly shown interest in the sector, investing $17.8 billion, contributing 54% of the total capital deployment.
  • Venture capital investments have been a major source of funding for insurtech startups. USA-based venture capital funds have deployed $5.3 billion in insurtech companies since Q2 2020.
  • Complete buyouts of insurtech companies have also been an active deal type in the market with a participation of $5.6 billion, particularly those businesses with a strong customer base and the potential for value creation.
The future of fintech and insurtech industries will be shaped by various factors, including technological advancements, market dynamics, and consumer preferences.
While the outlook is positive, it’s crucial for industry players to pay attention, adapt to changing times, and continue to innovate to capitalize on the emerging opportunities in these dynamic sectors.  

Sources: Pitchbook Data, Inc.

Education Technology Transactions by ASEAN-Based Investors

Education Technology Transactions by ASEAN-Based Investors

The education technology (edtech) sector has witnessed an influx of funds, securing approximately $8.5 billion through 400 transactions from ASEAN-based investors between 2020 and Q1 2023. The COVID-19 pandemic accelerated the demand for edtech solutions as remote learning spiked, sparking investor interest. Favorable market conditions, supportive government policies, and a focus on innovation have led ASEAN investors to actively contribute to edtech’s growth.  

This report provides an overview of the edtech investment landscape by ASEAN-based investors, analyzing key trends, notable deals, and regional preferences. 

Edtech has grown significantly across various subsectors, including augmented reality (AR) and virtual reality (VR), e-learning, artificial intelligence, gamified learning, and video-based learning programs. Technology has enhanced learning by increasing interactiveness, accessibility, and effectiveness for diverse learners in the digital age. 

Video learning enhances e-learning experiences through movies, graphics, and other visual elements. Advanced features like 3D or AI help students grasp concepts better, automate processes, and personalize learning experiences. Emerging technologies such as augmented reality, virtual reality, and gamified learning are transforming education by providing immersive experiences, increasing engagement, and making learning enjoyable. 

  • Since 2020, edtech companies have attracted $8.5 billion in investments from ASEAN-based investors through 400 transactions between 2020 and 2023 Q1. The average deal size in the sector throughout this period was $21 million. 
  • The first quarter of 2021 saw the largest capital deployment of approximately $2 billion in the sector across 23 deals. 
  • Investment figures fluctuated from Q2 2021 onwards, with periods of growth and decline. Notable fundraising activities by Unacademy, BYJU’S, and Kakao Entertainment played a major role in driving these significant investments.
  • The largest edtech investment by ASEAN-based investors was a $2 billion financing round in BYJU’S in March 2021. Notable participants in this round included venture capital firms like BlackRock and QIA.
  • BYJU’S, an Indian edtech company, provides online learning programs for students from kindergarten to grade 12. It has grown into one of the largest global edtech companies and expanded through acquisitions, including Aakash Educational Services. 
  • ASEAN venture capitalists accounted for 7% of the total capital deployed in edtech companies for 282 deals in the period. The average ticket size of $2 million may indicate the growth of new market entrants.
  • ASEAN private equity firms invested $7 billion into this sector (87% of the capital deployed) for 97 deals, suggesting an appetite for more established edtech companies among ASEAN PE firms.
  • Only 24 mergers and acquisitions in the sector indicate a focus on strategic acquisitions with higher average deal values (around $21 million).  This could suggest that larger edtech companies are acquiring complementary technologies and expertise and expanding their customer base.
  • Of all funding from ASEAN-based investors $4 billion was invested in India. This significant amount of $4 billion reflects the rapid expansion of the edtech ecosystem in recent years in India, coupled with the entry of multiple billion-dollar startups. 
  • Only $189 million (2%) of capital invested by ASEAN-based investors was allocated to companies in Indonesia, Vietnam, Malaysia, and Thailand combined. Despite the lower funding allocation, the 118 total deals still indicate an appetite for this sector, albeit highlighting a preference for smaller investments and early stage companies in these markets.
  • As for Singapore, $389 million was injected into this sector over 71 deals. This may suggest a rise in the number of new participants entering the market, as well as Singapore’s commitment to embracing educational innovation to maintain its status as a thriving and competitive nation in educational standards.
ASEAN investors actively support the education technology market, investing billions to drive innovation and digital transformation. The adoption of artificial intelligence (AI) and machine learning (ML) technologies for personalized eLearning, accelerated by the impact of COVID-19, has fueled market growth. Collaboration, innovation, and adaptability are vital for the sector’s success in meeting evolving learner and institutional needs. With advancing technology and growing demand for online education, the edtech market presents vast opportunities for investors and entrepreneurs.  

Sources: Pitchbook Data, Inc.

Media Technology and Data Storage Transactions by USA-Based Investors

Media Technology and Data Storage Transactions by USA-Based Investors

USA-based investors have deployed $18bn into the media technology sector, and $44bn into the data storage sector since 2020. The most significant capital market activity in both industries occurred within mergers and acquisitions, highlighting the appetite for market consolidation. Businesses within these industries should be mindful of market trends and opportunities.

This report provides a comprehensive analysis of investment activity in the media technology and cloud storage sectors by USA-based investors. The data set analyzed focuses on capital deployment, transaction types, geographical distribution, and investor preferences within the industry. By analyzing the data and trends from 2020 to 2023, this report reviews the dynamic landscape of media technology and cloud storage investments, offering insights into market dynamics and growth opportunities.

  • Since 2020, media technology companies have attracted $18bn in investments through 479 transactions with an average deal size of $38mn.
  • In Q4 2021, over $7bn was invested in media technology companies, the highest capital invested between 2020 and Q2 2023. This was driven by four large mergers and acquisitions in the sector, including Blackstone’s acquisition of Foundry ( for over $1bn.
  • In 2022, after the strong outlier of Q4 2021, there was a significant decrease in investments in media technology companies, in line with broader trends in technology capital markets.
  • The recent uptick in investments during Q2 2023 could indicate a renewed interest amongst investors in the sector, suggesting that investors see increased opportunities at lower valuations, and as a result, are now willing to re-engage with the sector.
  • USA-based media technology companies received 66% of all the capital allocated by USA-based investors globally. This indicates investors’ preference for domestic transactions within the sector.
  • Of the capital deployed in the sector, 20% was made to companies based in Canada. The largest transaction was the acquisition of Score Media Ventures by Penn National Gaming for $1.9bn in October 2021. The similar market conditions, business culture, and time zone resulted in simpler integration processes for USA acquisitions in Canada compared to other global regions.
  • The relatively lower percentages of 7% for Europe, 6% for East Asia, and 1% for other regions represent a smaller market share for media technology companies outside of North America. This suggests that these regions are yet to fully establish themselves as notable hubs for media technology companies, attracting a relatively smaller proportion of USA-based investments.
  • From 2020 to Q2 2023, 38% of media technology transactions were mergers and acquisitions, highlighting the industry’s significant consolidation activities.
  • A large portion of investments in media technology companies came from venture capital (VC) firms, accounting for 26% of funding. This could indicate the growing attractiveness of early-stage and high-growth companies.
  • Of the investments in the sector, 23% were conducted by private equity firms, highlighting the media technology sector’s maturity and abundance of growing companies.
  • Between 2020 and Q2 2023, data storage companies attracted a total investment of $44bn through 614 transactions, with an average deal size of around $70mn.
  • In Q1 2022, the sector experienced more than 60 transactions, with over $17bn deployed, with the largest transaction being the acquisition of CyrusOne by Global Infrastructure Partners and KKR for $15bn.
  • The capital invested in the sector gradually decreased in subsequent quarters, suggesting a temporary downturn or a possible shift in investor sentiment.
  • Of the announced deals by USA-based investors, 92% were deployed in data storage companies located within the USA during the period. This could indicate an emphasis on development in domestic data storage companies. This might be due to factors like data privacy and compliance, local infrastructure and connectivity, and the fact that the US economy is transforming digitally faster than the rest of the world, creating a need for more data storage technologies.
  • The chart shows a relatively smaller share of interest in the European market, with only 6% of investments in data storage companies. This could be due to various factors, such as market dynamics, geopolitical events, regulatory differences, or differences in perceived opportunities.
  • Only 2% of the announced deals were in regions other than the USA and Europe, highlighting a restricted presence and investment activities in other markets, suggesting potential untapped opportunities for future expansion and exploration in these  regions.
  • Of the transactions involving data storage companies, 61% were classified as mergers and acquisitions, highlighting a strategic approach by investors to combine companies, assets, and capabilities to strengthen market position and drive growth.
  • The data indicates limited participation of venture capital (VC) firms in transactions involving data storage companies, accounting for only 2%. This lower percentage can be attributed to the capital-intensive and heavy nature of the data storage industry, which requires significant investments in infrastructure, technology, and research.
  • The data storage sector attracts a higher proportion of investments from other investors, such as private equity (29%), who are better positioned to handle the industry’s CAPEX-intensive nature.
In conclusion, the above report reveals a robust ecosystem of media technology and data storage companies, driven by substantial investments from USA-based investors. The data showcased a notable emphasis on domestic investments, particularly in data storage companies within the USA, indicating a robust and flourishing sector. While the USA dominates the investment landscape, there are opportunities for collaboration and expansion in international markets, as indicated by the relatively smaller share of investments in regions such as Europe and East Asia.

Sources: Pitchbook Data, Inc.

How to Perform a Disciplined Sell-Side M&A Process to Maximize Results

How to Perform a Disciplined Sell-Side M&A Process to Maximize Results

The sell-side M&A process, facilitating the sale of a business, is long and complex. Bringing a company to market does not guarantee the company will achieve its M&A goals. The M&A process is challenging for three reasons:

1. It is difficult to build consensus among a large number of stakeholders.

2. Gathering relevant, transparent, and adequate data is complicated, particularly in private markets.

3. The M&A process contains many steps, and within each step, there are many opportunities for things to go wrong.

This report contains the step-by-step guide Jahani and Associates (J&A)—an NYC-based professional services and advisory firm—uses to maximize results for its clients. Each step in the sell-side M&A process is driven by activities, deliverables, and solutions.

STEP 1: Preparation to Solicitation

Preparation for solicitation requires the company and their investment banker to generate the artifacts buyers need to make an offer for the company. This information includes but is not limited to financial information, the growth history of the company, intangible asset information (e.g., customer relationships and proprietary technology), and the reasons the owners are selling the business.

Industry-standard deliverables, such as a confidential information memorandum (CIM) and audited financial statements, are used in this phase to market the business to potential buyers. This phase is vital because any delays while in market can impact the outcome of a transaction.

STEP 2: Solicitation to IOI

Reaching a sufficient number of solicitations to find an interested buyer is difficult and crucial, particularly in the lower-middle and middle markets. J&A recommends only sending detailed material during the preparation phase to potential buyers after they have signed an NDA. Common sources of buyer solicitations include direct connections from an investment banker’s network, direct solicitations of qualified buyers determined from research (e.g. PitchBook), and targeted emails to qualified lists of buyers. 

IOIs (Indications of Interest) contain valuation ranges and general expectations of earn-out, which should be negotiated as necessary to have a smooth transition from an IOI to an executable letter of intent (LOI). IOIs are non-binding.


A site visit usually occurs while transitioning an IOI to an LOI and is an opportunity for the buyer and seller to meet and conduct a deep dive into any outstanding items that need to be settled before executing an LOI. Since LOIs are legally binding, many buyers will require exclusivity after an executed LOI, which is also referred to as a “no-shop clause.” This means the seller will not be able to conduct sale-related conversations during the no-shop period and must ensure the upcoming due diligence will be satisfactory, in order to close the deal.

STEP 4: LOI to Purchase Agreement, Including Due Diligence

Due diligence is the process of affirming the information the buyer has used to make his offer and determining whether or not the company is in good standing with all relevant information in its possession. It is often the longest part of the sell-side M&A process, as it may take up to 120 days.

Once due diligence is complete, executing the purchase agreement, where ownership changes hands, is the final step in the sell-side M&A process. Agreements can be asset purchases or stock purchases. If due diligence went as expected, which is vastly important, this step should be relatively simple. Changes that may affect purchase agreement negotiations are material discoveries in due diligence, economic forces, material alterations in business operations, and management changes.

Problems and Solutions: Quickly Resolving Challenges Requires

Deep Thinking and Preparation

Jahani and Associates has collected common challenges that exist in each step of the sell-side M&A process and the best way to resolve them. In order to avoid disruptions or delays in the M&A process, it is important for M&A stakeholders to plan ahead and know where weaknesses may rise, and also imperative that the investment banking team has a plan to resolve these challenges before they even arise.

Preparation to Solicitation

Companies most often do not go from preparation to solicitation when seller management teams are not aligned or properly prepped for the sell-side M&A process. This can occur when multiple stakeholders are involved, particularly in companies boasting a significant capital raise. If a business undergoes a change that materially reduces the company’s desired valuation, management often decides to postpone the process.

Solicitation to IOI

As a solicitation to IOI is fundamentally a sales process, sellers, and their teams are most prepared when they view this as a sales exercise. This is often the most difficult step in the process for unprofitable companies in the lower-middle market.


Moving from an IOI to LOI is a matter of negotiation and mutual understanding between the buyer and seller. A site visit is often used between the IOI and LOI to develop a relationship between the buyers and sellers.

LOI to Purchase Agreement, Including Due Diligence

Due diligence is the process of confirming the buyer’s understanding of the business at the time they made their offer. Due diligence is time-consuming and material information that changes the valuation, and earn-out identified in the LOI may be discovered during due diligence. This will be negotiated as part of the purchase agreement, which may be made for either cash or stock, each of which has its own tax, legal, and strategic considerations.

The sell-side M&A process is challenging, but the seller’s success will be maximized when a disciplined process is followed.

The challenges, solutions, and KPIs in this paper are not exhaustive, but they provide an overview of the way to maximize success in sell-side M&As. It is important that all stakeholders understand the challenges they will face and how to alleviate them as quickly as possible. Establishing a consensus among stakeholders and then focusing on a problem-solution-KPI framework gives transparency to the client and allows the investment banker to increase the size of their team while preserving client service and information sharing. Experience in dealing with these issues is paramount to successfully delivering M&A results, and that experience must be coupled with actionable outcomes.

Any business owner seeking to sell their business must carefully consider all these factors and be aware of expected obstacles in order to significantly increase the likelihood that their company successfully completes a sell-side M&A transaction. The analysis contained herein is based on decades of experience and is included to support business owners across the world as they achieve a maximally successful exit.

In 2019, J&A surveyed hundreds of business owners about successful and failed M&A deals, why they failed, and how those failures could have been avoided. J&A then compared these stories with its own processes and tools to determine the best way to anticipate and avoid these failures in any M&A scenario. The resulting analysis is this document that outlines common reasons for failure and how to avoid them. This document is meant to serve as a resource to business owners and other service providers to give the best strategic advice and service for their business or clients.


1. Baird, Les, David Harding, Peter Horsley, and Shikha Dhar. “Using M&A to Ride the Tide of Disruption.” Bain & Company, January 23, 2019.

2. Buesser, Gary. “For the Investor: Internally Generated Intangible Assets.” Accessed November 22, 2019.

3. Corporate Finance Institute. “What is the No Shop Provision?” No-Shop Provision. Accessed November 22, 2019.

4. Deloitte. “Cultural issues in mergers and acquisitions.” Leading through transition: Perspectives on the people side of M&A. Last modified 2009.

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