If Horace Greeley were alive today, the famous newspaperman might be saying: “Go #East, young entrepreneur, go East.” China is a behemoth to be ignored at the peril of the #fintech world. In his outlook for the year, LendIt co-founder Peter Renton said earlier this month: &8220;If you are a U.S. platform and you are thinking about raising […]
Bank Innovation
#China may have taken the top spot in 2016 #fintech #funding, but it wasn’t the one #doing most of the #investing. While China claimed nearly $ 8 billion of the total $ 17.4 billion invested across the world, according to a report by U.K-based Innovate Finance, the top fintech investor for the yearRead More
Bank Innovation
Venture capitalists were not buying it last year. Venture capital-backed #fintech companies in the U.S. saw a drop in both deals and #funding volume last year. Fintechs raised $ 5.5 billion across 422 deals, compared to $ 7.7 billion (and 459 deals) in 2015 – a 29% drop, according to the Global FintechRead More
Bank Innovation
Here there be dragons, and they’ve started to rule over unicorns—well, in matters of #funding, anyway. According to a new report released by Citigroup on digital disruption, the second of its kind, #China has now overtaken the U.S. to claim the No. 1 spot for investments in #fintech on a global scale.Read More
Bank Innovation
Everything that happened in #fintech this week in the U.K. is just plain wrong. #Funding #Circle raised $ 100 million for its peer-to-peer lending platform AND notched record lending activity in the final quarter of 2016 — AND pushed its U.K. operation into profitability. Brexit? Shmexit. Oh, the indignity of it.Read More
Bank Innovation
Another day, another dollar—only this is #fintech, so it would be more accurate to say another day, another multi-million investment in #blockchain, virtual currency, mobile banking, e-commerce, and/or all of the other technologies on the playground. So far, 2017 fintech #funding hasn’t veered far from the areas of interest inRead More
Bank Innovation
Small steps, big leaps – be it working out, learning a new language or investing. That’s the inspiration behind #Stash, a mobile investing platform that allows users to invest as little as $ 5 that announced $ 25 #million in Series B #funding this morning. The round was led by Valar Ventures, oneRead More
Bank Innovation
With the holiday season in full swing it seems #fintech investors are spreading the cheer. From fare-predicting apps to e-commerce to real estate, fintech had a good week. Below are our top fintech #funding #rounds of the week: #Hopper Montréal-based airfare predicting app Hopper just raised $ 62.2 million in aRead More
Bank Innovation
Digital payments startup Stripe, begun back in 2000 by a pair of Irish brothers, has just raised new #funding that values the company at just over $ 9 billion—and incidentally makes its founders the youngest billionaires in Ireland. In all, $ 150 million in new capital was raised. This brings the company’sRead More
Bank Innovation
Investors continued to take a much more cautious approach to #fintech investments this year. #Venture capital (VC)-backed #global fintech deal activity fell for the second consecutive quarter, marking its lowest level since Q2’14, according to the Pulse of Fintech, the quarterly report on global fintech VC trends published jointly by KPMG International and CB Insights.
VC-backed fintech in Q3 2016
VC-backed fintech #funding dropped 17% to US$ 2.4B, while deal activity fell 12% to 178 deals in #Q3’16 compared to the previous quarter. Asia was the only continent to see a fintech funding increase on a quarterly basis in Q3’16, while North America and Europe fintech funding declined. All three continents covered in the report saw fintech deal count drop.
Chia Tek Yew
“Asian investors are seeing the potential of fintech amidst global uncertainty in an environment of moderating growth,” said Chia Tek Yew, Head of Financial Services Advisory, KPMG in Singapore. “As businesses continue to embark on the journey of transformation, interest and investment in Asia’s fintech sector will continue to be strong, particularly in areas like payments #technology, insurance technology and regulatory or risk technology.”
Mr Chia added: “Singapore is a leading fintech hub, being one of the first countries in the world to put in place a regulatory fintech sandbox. There are also plans by the authorities to explore ways to attract more VC funds, which bodes well for the overall funding ecosystem.”
Asia quarterly fintech funding tops US: US$ 1.2B across 35 deals in Q3’16. While the number of VC-backed fintech deals dropped to a five-quarter low in Asia, funding increased 50% on a quarter-over-quarter basis to reach US$ 1.2B. Year-to-date results of US$ 4.7B suggest Asia-based fintech investment for 2016 could top last year’s peak investment results of US$ 4.8B. Corporates continue to be highly active in Asia’s fintech investment environment, participating in more than half of all deals to VC-backed fintech startups in Q3’16.
North America sees fintech funding fall below US$ 1B. North America saw both fintech funding and the number of deals fall on a quarter-over-quarter basis, as VC-backed startups raised just US$ 0.9B across 96 deals, a drop of 5% in deals from Q2’16 Funding in Q3’16 to VC-backed fintech companies in North America fell 68% compared to the same quarter last year, which saw US$ 100M+ financings to the likes of Sofi, Avant and Kabbage. #KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity.
Deal Count and Investment by Continent
Europe fintech funding on pace to drop below 2015 levels. Q3’16 saw European fintech deals fall 17% quarter-over-quarter as fintech funding in Europe dropped 43% over the same time period to US$ 233M. Germany outpaced the UK in terms of fintech funding for the second consecutive quarter, with 35% more funding raised by German- based VC-backed fintech companies than those in the UK.
Corporates stay active in fintech. Corporates participated in 30% of global VC-backed fintech deals for the second consecutive quarter in Q3’16, driving a significant amount of fintech deals activity globally. Citigroup, Banco Santander and Goldman Sachs have made over 20+ fintech investments in total over the past five quarters, while a host of insurers have launched corporate venture arms.
Other key highlights from the Pulse of Fintech:
The Pulse of Fintech
Global fintech mega-rounds fell to a new low in Q3’16. Asia saw US$ 50M+ fintech rounds stay level for the fourth straight quarter, while Europe has not registered a single US$ 50M+ round to a VC-backed fintech company so far in 2016.
The median late-stage deal size in fintech globally fell to US$ 23M in Q3’16. This is significantly smaller than the same quarter last year, when median late-stage fintech deal size hit US$ 50.2M globally.
Total year-to-date funding to VC-backed InsurTech companies reached US$ 1.36B at the end of Q3’16. InsurTech-focused VC-backed deal activity topped 20 deals during three of the past five quarters.
Next-gen payments has attracted US$ 1.2B+ in 2016 VC-backed funding (year-to-date). The top 20 deals, including Affirm, Mobikwik and One97, raked in 67% of the total funding to payments technology companies in the first three quarters.
Anand Sanwal
Anand Sanwal, CEO of CB Insights, adds: “While we continue to see significant investment into fintech companies globally, the euphoria for mega-deals that we saw into the latter half of 2015 has waned. Total investments to key areas like marketplace lending and #blockchain technology have both seen #declines heading into the tail-end of 2016.”
The post Global Venture Capital-backed Fintech Funding Declines In Q3’16: KPMG And CB Insights appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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