20 September 2017
visit www.avoka.com

Global funding for VC-backed fintech firms doubles to $13.8bn

09 March 2016  |  12696 views  |  0 Golden egg in nest

2015 was the year that financial technology entered the mainstream, claims a new report from KPMG and CB Insights which estimates that VC-backed fintech firms around the world secured $13.8 billion in funding as they began having a serious impact in every area of banking and insurance.

Last year fintech funding more than doubled from just $6.7 billion in 2014, says the Pulse of Fintech report, which notes that a marked drop off in the number of deals in the fourth quarter was offset by the rise of so-called 'mega-rounds' - $50 million-plus deals, which jumped past 60.

The report also highlights another trend - corporates are becoming increasingly active, with players from industries such as financial services, telecoms and technology participating in at least a quarter of all fintech deals for three quarters straight. Citigroup has been the most active bank investor over the last few years, followed by Goldman Sachs.

Geographically, despite the hype surrounding London, Europe lags behind North America and Asia. The US alone saw 351 deals worth $7.4 billion, a 72% rise on 2014 while in Asia funding quadrupled to $4.5 billion across 130 deals thanks to a spike in mega-rounds for firms like One97 and BankBazaar.

In contrast, despite having nearly as many deals as Asia, VC-backed fintech companies in Europe raised just $1.5 billion because of a lack of big rounds and less corporate participation than in Asia, where the Chinese giants such as Alibaba and Tencent are heavily involved in investing. Within Europe, the UK saw funding outpace that of Germany by nearly 400% thanks to investments in Funding Circle, WorldRemit and others.

While payments and lending continue to dominate the fintech space - accounting for the vast majority of unicorns - the report picks out insurance as a rising area of interest with firms like Zenefits, Oscar and Gusto leading the charge.

Meanwhile, the most hyped fintech area of the last year, blockchain technology, saw VC investment rise from $298 million in 2014 to $460 million in 2015. Although Citi, Santander, HSBC and others have formed partnerships with blockchain firms, the report cautions that there are still major barriers, including regulatory ones, to takeup, meaning that investors looking for short-term success are likely to be left disappointed.

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

Mondo rush breaks Crowdcube

Mondo rush breaks Crowdcube

29 February 2016  |  5820 views  |  0 comments | 10 tweets | 3 linkedin
Global regulators to probe fintech threats to financial stability

Global regulators to probe fintech threats to financial stability

29 February 2016  |  12444 views  |  2 comments | 32 tweets | 43 linkedin
HK Government goes all in on fintech

HK Government goes all in on fintech

25 February 2016  |  12476 views  |  1 comments | 36 tweets | 14 linkedin
Corporate venture investment behind 2015 surge in UK fintech deals

Corporate venture investment behind 2015 surge in UK fintech deals

24 February 2016  |  6885 views  |  0 comments | 16 tweets | 7 linkedin
BBVA increases newly independent fintech venture fund to $250m

BBVA increases newly independent fintech venture fund to $250m

11 February 2016  |  13293 views  |  1 comments | 19 tweets | 13 linkedin
WorldRemit raises $45 million

WorldRemit raises $45 million

10 February 2016  |  6254 views  |  0 comments | 6 tweets | 6 linkedin
Fintech rising: Resistance is futile, says UBS CIO

Fintech rising: Resistance is futile, says UBS CIO

04 February 2016  |  19618 views  |  4 comments | 57 tweets | 50 linkedin
Financial industry giants join $50m Digital Asset Holdings funding round

Financial industry giants join $50m Digital Asset Holdings funding round

21 January 2016  |  14831 views  |  0 comments | 13 tweets | 20 linkedin
Capital markets sector leads fintech M&A activity

Capital markets sector leads fintech M&A activity

21 January 2016  |  7419 views  |  0 comments | 10 tweets | 6 linkedin
Banks face threat as consumers warm to fintech providers

Banks face threat as consumers warm to fintech providers

13 January 2016  |  11974 views  |  1 comments | 56 tweets | 35 linkedin
Economic woes spell doom and gloom for Chinese fintech sector

Economic woes spell doom and gloom for Chinese fintech sector

08 January 2016  |  7478 views  |  0 comments | 10 tweets | 3 linkedin
Lending startups dominate digital banking funding scene

Lending startups dominate digital banking funding scene

07 January 2016  |  12799 views  |  3 comments | 32 tweets | 14 linkedin
VCs like bees around honey as fintech heats up

VCs like bees around honey as fintech heats up

18 December 2015  |  13024 views  |  1 comments | 27 tweets | 12 linkedin
Global fintech investment booms as banks jump in

Global fintech investment booms as banks jump in

15 December 2015  |  16517 views  |  0 comments | 42 tweets | 17 linkedin
Osborne pushes London's fintech credentials

Osborne pushes London's fintech credentials

11 November 2015  |  8413 views  |  0 comments | 18 tweets | 8 linkedin

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.abe-eba.euvisit www.capgemini.com

Who is commenting?

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
10804 views comments | 24 tweets | 39 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10352 views comments | 6 tweets | 17 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9174 views comments | 6 tweets | 3 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
7653 views comments | 5 tweets | 4 linkedin
ING moves into digital wealth management with Scalable CapitalING moves into digital wealth management w...
7487 views comments | 14 tweets | 15 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job