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PRIVATE EQUITY IN FINTECH SECTOR...ONDECK Lending $1.3B $5.2B $5.1B $2.5B 126 152 142 86 1H 2014 2H...
Transcript of PRIVATE EQUITY IN FINTECH SECTOR...ONDECK Lending $1.3B $5.2B $5.1B $2.5B 126 152 142 86 1H 2014 2H...
For more information, visit www.tresvista.com
$2.3
$2.3
$2.4
$3.5
$4.0
$4.5
$5.0
$5.0
$8.0
$10.0
PRIVATE EQUITY IN FINTECH SECTOR
Why Consumers Adopt Fintech Solutions? Leading Themes
43.4%Ease of setting accounts
15.4%Attractive rates/fees
12.4%Access to different products and services
11.2% Better online experience and functionality
1.8%Greater level of trust vs. traditional institutions
5.5%Innovative products vs. traditional banks
10.3%Better quality of service
Lending tech
Peer-to-peer lending and underwriting platforms based on machine learning algorithms
Payments/billing tech
Payments processing facilitators, payments card developers and billing softwares
Money transfer
Peer-to-peer platforms which facilitate individuals to transfer money globally
Personal wealth management
Solution providers for managing personal bills, accounts, credit, assets and investments
Equity crowdfunding
Platforms for raising equity from a collection of individuals for projects / companies
InsurTech
Underwriting, claims, distribution and brokerage platforms for insurers
Blockchain
Firms in the distributed ledger space, spanning Bitcoin wallets, security providers to sidechains
Institutional markets tech
Tools such as financial modeling and analysis software for financial institutions
Funding Activity by Product SegmentsFintech Global Landscape
total global VC funding (2011-2016 YTD)
companies across
54 countries
Investment ($) CAGR
100 200 300 400 500 600 700 800 900 1,0000
10%
20%
30%
40%
50%
60%
# of deals 2010 - 2015
Retail Lending
Retail Investments
SME Lending & Asset Finance
Non-life
Corporate PaymentsAccount Mgmt-Retail Retail
Payments
Merchant Acquiring
Other
1,362
$15.4B funding in North America
Select Unicorns Valuation ($B)Key Growth Drivers
CAGR 2014-2020 Value of the indicator by 2020
Online banking penetration
Payment transactions at terminals
POS terminals
Smartphone penetration
Creditpenetration
12.1%
9.2%
8.8%
7.4%
6.8%
396B
104.4M
53.5%
32.1%
46.4%
Lending Payment Insurance
$36.9B
756 companies
in USA Bubble size is indicative of the total investment amount
Zhong An Insurance
For more information, visit www.tresvista.com
PRIVATE EQUITY IN FINTECH SECTOR
TresVista Financial Services is the leading provider of high-end outsourced support for asset managers, investment banks, research firms, and corporates. TresVista delivers operational efficiencies and cost savings to its clients while providing them with dedicated teams to support them across various functional activities. Services
include investor relations, fund raising, deal sourcing, deal execution, valuation, research, financial modeling, portfolio management, marketing and legal support.
ABOUT TRESVISTA
($ Billion)
Seed/Angel Series A Series B Series C Series D Series E Other
Deal TypesVC Funding Trends
Q2’1535% 23% 11% 11% 3% 3% 13%
Q3’1532% 26% 17% 7% 3% 2% 13%
Q4’1534% 25% 17% 6% 2% 2% 14%
Q1’1634% 24% 16% 7% 4% 2% 12%
Q2’1629% 26% 13% 12% 4% 2% 15%
807
2011 2012 2013 2014 2015
710
560
451
311
$2.1$3.1$2.5
$7.3
$14.5
DealsInvestments
Funding
$7.4b
YTD
Deals
416
Fintech Exits
Top Recent IPOs
$4.7B
SQUAREPayment Processing
LENDING CLUBLending
$2.9B
ONDECKLending
$1.3B
$5.2B
$5.1B
$2.5B
126
152142
86
1H 2014 2H 2014 1H 2015 2H 2015
M&A Count
M&A Revenue Multiple M&A EBITDA Multiple
IPO Count
2.60x3.20x
2.40x3.20x
16.0x15.0x
14.6x
12.1x
7
10
6
6
Top M&A
Sources: Crunchbase, Pulse of Fintech August 2016, Hampelton Partners, Venture Scanner Insights, CB Insights, KPMG, Statista
Most Active Investors
PEs/VCs Corporates Banks
14.4xAverage
EV/EBITDA
2.90xAverage EV/Sales