25 July 2016
Find out more

VCs join fintech gold rush

08 August 2014  |  12127 views  |  0 cash

There has been a surge in venture funding for fintech firms over the last six months, culminating in a number of big bets in July, according to data from CrunchBase.

CrunchBase gathered all tech-related venture rounds from July and found that financial services was the category with the biggest boost in activity, recording a 30% increase in the six month moving average.

There were 16 financial services funding rounds in July, a 60% increasing on the average of the previous six months, bumping the moving average from 10 to 13 a month.

It is not just the number of rounds that is impressive, but also the size of some. AvantCredit, a Chicago-based online consumer lender, scored the biggest injection of cash last month, raising $75 million in a series c funding round led by Tiger Global Management. Meanwhile, UK-based online marketplace for business loans, Funding Circle, picked up $65 million.

That lenders are attracting so much money suggests a shift may be under way in the type of fintech firms VCs are going after. Recent CrunchBase data shows that the once dominant payment industry is losing its lustre for investors, with the number of venture-backed payments companies declining from a high of 59 startups in the third quarter of 2013 to just 41 in the second quarter of 2014.

CrunchBase says that the latest figures show that a "new market is starting to emerge: FinTech". This is backed by separate data from CB Insights, which shows that fintech deal activity by the world's biggest venture capital firms grew 61% between 2010 and 2013.

According to Accenture, overall global fintech investment tripled between 2008 and 2013 from $928 million to $2.97 billion and is expected to double again to between $6 billion and $8 billion by 2018.

This week an industry body, Innovate Finance, launched to help promote the UK as the global centre for the burgeoning market, securing backing from the government as it seeks to beat out Silicon Valley, New York and the Far East to become the place to do fintech business.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Rocket Internet scores EUR333m investment for emerging markets payments push

Rocket Internet scores EUR333m investment for emerging markets payments push

07 August 2014  |  4920 views  |  0 comments | 12 tweets | 1 linkedin
UK fintech industry bands together to push innovation agenda

UK fintech industry bands together to push innovation agenda

06 August 2014  |  10357 views  |  0 comments | 21 tweets | 6 linkedin
Osborne looks to virtual currencies in bid to make UK world fintech capital

Osborne looks to virtual currencies in bid to make UK world fintech capital

06 August 2014  |  7920 views  |  0 comments | 20 tweets | 7 linkedin
Google UK MD to run new fintech investment fund

Google UK MD to run new fintech investment fund

06 August 2014  |  6540 views  |  0 comments | 10 tweets | 5 linkedin
New fintech fund targets emerging markets

New fintech fund targets emerging markets

28 July 2014  |  7563 views  |  0 comments | 14 tweets | 9 linkedin
Dancing with Unicorns: Top VCs ramp up fintech investment activity

Dancing with Unicorns: Top VCs ramp up fintech investment activity

28 July 2014  |  7371 views  |  0 comments | 11 tweets | 8 linkedin
Online lender AvantCredit raises $75m

Online lender AvantCredit raises $75m

24 July 2014  |  3266 views  |  0 comments | 1 tweets | 1 linkedin
Funding Circle raises $65m; adds former Wachovia boss to board

Funding Circle raises $65m; adds former Wachovia boss to board

17 July 2014  |  6112 views  |  0 comments | 8 tweets | 4 linkedin
New York set to overtake Silicon Valley as fintech startup hub

New York set to overtake Silicon Valley as fintech startup hub

26 June 2014  |  12018 views  |  0 comments | 31 tweets | 16 linkedin
Payments start-ups raise $1.2 billion across 193 deals in 2013

Payments start-ups raise $1.2 billion across 193 deals in 2013

10 January 2014  |  10848 views  |  0 comments | 34 tweets | 17 linkedin
Fintech innovation VCs Anthemis Group and Life.Sreda team up

Fintech innovation VCs Anthemis Group and Life.Sreda team up

04 September 2013  |  6826 views  |  0 comments | 6 tweets | 3 linkedin
Bank CIOs and VCs rally behind New York fintech innovation programme

Bank CIOs and VCs rally behind New York fintech innovation programme

03 December 2010  |  8321 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euFind out moreVisit VocaLink.com

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8679 views 14 comments | 32 tweets | 37 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
8526 views comments | 8 tweets | 3 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
8330 views 0 | 14 tweets | 8 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
8081 views 3 | 20 tweets | 7 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7742 views comments | 22 tweets | 28 linkedin

Featured job

Find your next job