25 February 2018
Visit www.avoka.com

Global fintech funding bounces back but Europe stutters

25 May 2016  |  7231 views  |  0 Chinese Flag

After a tricky end to 2015, global fintech funding bounced back in the first quarter to hit $5.7 billion. However, the numbers are skewed by a couple of billion dollar-plus Chinese deals which mask a stagnant European scene.

According to the latest KPMG and CB Insights Pulse of Fintech report, global investment in private financial technology companies totalled $5.7 billion in Q1, with $4.9 billion specifically invested in VC-backed outfits across 218 deals, a 96% jump on the same quarter last year.

The huge numbers are largely down to mega rounds of over $1 billion each for Chinese firms JD Finance and Lu.com, which helped see Asia reverse a drop off in investment at the end of 2015. In the first quarter of this year China accounted for $2.4 billion of Asia's $2.6 billion in fintech funding and 49% of investment across all geographies.

In contrast, Europe saw VC-backed fintech investment continue to "pause for breath" as funding remained almost level with the previous quarter at $348 million.

Whilst the UK remains ahead of the rest of Europe, the level of funding there fell significantly in Q1 to $102 million from $275 million the previous quarter, with the report citing the combined effect of low oil prices, stock market volatility and concerns over the outcome of the EU referendum as a possible reason for investor caution.

The news is better in North America, which saw both fintech funding and deals rebound following a major drop in Q4 2015, as VC-backed fintech companies raised $1.8 billion across 128 deals, an increase of 80% in funding quarter-over-quarter.

In North America there is now less focus on the payments arena as the market reaches saturation point and big players such as Stripe and Square assert their dominance. In contrast, insurance has emerged as a popular area for investment around the world.

Anand Sanwal, CEO, CB Insights, says: "While fintech startups continue to attract large investment both in the US and abroad, and investors gravitate to areas yet untouched by much tech innovation including insurance, recent events and public market performance suggest that growth-stage fintech fundraising will be harder to come by moving forward in 2016."

Read the full report: » Download the document now 2.9 mb (PDF File)

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

Big banks join $40 million SigFig round

Big banks join $40 million SigFig round

24 May 2016  |  6772 views  |  0 comments | 8 tweets | 6 linkedin
The fintech mirage is losing its shine

The fintech mirage is losing its shine

13 May 2016  |  18962 views  |  6 comments | 66 tweets | 51 linkedin
US alternative finance market shows no signs of cooling off

US alternative finance market shows no signs of cooling off

13 April 2016  |  6869 views  |  0 comments | 9 tweets | 12 linkedin
Europe and Asia drive strong Q1 fintech investment growth - Accenture

Europe and Asia drive strong Q1 fintech investment growth - Accenture

12 April 2016  |  12384 views  |  0 comments | 16 tweets | 13 linkedin
Fintech dominates African startup investment

Fintech dominates African startup investment

01 April 2016  |  19093 views  |  0 comments | 37 tweets | 15 linkedin
UK and Ireland's fintech funding scene lags

UK and Ireland's fintech funding scene lags

11 March 2016  |  11255 views  |  0 comments | 26 tweets | 11 linkedin
Global funding for VC-backed fintech firms doubles to $13.8bn

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

09 March 2016  |  13002 views  |  0 comments | 30 tweets | 31 linkedin
Global fintech investment booms as banks jump in

Global fintech investment booms as banks jump in

15 December 2015  |  17093 views  |  0 comments | 42 tweets | 17 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsVisit http://info.nice.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12667 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10833 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9331 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8692 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8636 views comments | 11 tweets | 14 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job