Venture Scanner Fintech Overview 2016 Q4
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Transcript of Venture Scanner Fintech Overview 2016 Q4
Venture Scanner is your analyst and technology-powered startup research firm
Financial Technology Startup Landscape Trends and Insights
October 10, 2016
Financial technology report outline
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This report provides an overview of the financial technology (fintech) sector and is broken down into three sections
Sector Description
High-level sector metrics with sub-category
definitions
Trends & Insights
Infographics and data points around the
fintech sector
Quarterly Activity
Major funding and exit events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup database and landscaping platform
Financial Technology Sector Description
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Financial Technology
1,913 companies across 16 categories from 58 countries
with $53.3B in funding
Startups are creating new financial business lines and disrupting old ones
Lending Personal Finance Payments Equity Financing Remittances
Retail Investing Institutional Investing
Security Online Banking Research & Data Crowdfunding Business Tools Infrastructure
The graphic above shows a sampling of companies in each category
Financial technology startups play in many different categories (1 of 2)
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Banking Infrastructure 114 Startups, $1.5B Total Funding Solutions that improve the operations of financial back offices and between financial institutions.
Business Lending 181 Startups, $9.8B Total Funding Alternative or streamlined ways for companies to raise debt and have their credit risk assessed.
Consumer and Commercial Banking 66 Startups, $1.5B Total Funding New ways for consumers and enterprises to interface with digital banking services.
Consumer Lending 264 Startups, $16.7B Total Funding Alternative or streamlined ways for consumers to raise debt and have their credit risk assessed.
Consumer Payments 182 Startups, $9.5B Total Funding Payment companies centered around issuers and consumers, like mobile wallets and P2P payments.
Crowdfunding 68 Startups, $436M Total Funding New ways for consumers and enterprises to raise non-equity/non-debt financing.
Equity Financing 137 Startups, $738M Total Funding Ways for companies to raise equity capital and for investors to participate in private securities markets.
Financial Research and Data 79 Startups, $824M Total Funding Information services that enable investors to make better investment decisions.
Category stats as of October, 2016
Financial technology startups play in many different categories (2 of 2)
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Financial Transaction Security 101 Startups, $1.6B Total Funding Technologies to secure transactions, authenticate users, and prevent fraud.
Institutional Investing 142 Startups, $781M Total Funding Startups assisting professional traders in ways to manage their portfolios and optimize returns.
International Money Transfer 59 Startups, $1.5B Total Funding Companies that allow businesses and individuals to send money abroad easily and cheaply.
Payments Backend and Infrastructure 181 Startups, $10.4B Total Funding Payment companies centered around issuers/acquirers and the infrastructure enabling payments.
Personal Finance 194 Startups, $2.7B Total Funding Companies that help consumers track their personal finances for budgeting optimization.
Point of Sale (POS) Payments 164 Startups, $7.6B Total Funding Payment companies centered around acquirers, providing physical payment solutions for businesses.
Retail Investing 150 Startups, $1.6B Total Funding Ways for consumers to invest in various securities using streamlined and new interfaces.
Small and Medium Business (SMB) Tools 183 Startups, $7.3B Total Funding Tools that help SMBs manage their finances, payroll, taxes, and accounting functions.
Category stats as of October, 2016
Financial Technology Trends & Insights
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Lending and Payments are dominating fintech startup activity
Within fintech, lending and payments categories account for 73% of all venture funding and 43% of total startup companies
Total Venture Investing into Financial Technology
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300
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Company Count
Tota
l Fun
ding
($B)
VC Funding Count
Companies are categorized by function, and therefore can exist in multiple categories
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Funding into financial technology has grown rapidly
Overall fintech VC funding grew at a CAGR of 75% from 2010-2015, and 2016 is on pace to be the highest funding year ever
Financial Technology Funding Over Time
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tota
l Fun
ding
($B)
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More fintech startups are starting to show traction
2016 has seen an expansion of Series B funding, implying that VCs are happy enough with startup performance to provide follow on investments
Financial Technology Funding By Type Over Time
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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund
ing
($B)
Late Stage Series D Series C Series B Series A Seed
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Mid-age fintech startups lead in VC funding
Since 2005, 34% of total fintech funding has gone into startups founded in 2011 and 2012
Financial Technology Funding By Vintage Year
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tota
l Fun
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($B)
Year Founded
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Financial technology startups are a global phenomenon
Financial Technology Startup Count by Country
0 >995 Companies
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Top VC investors are making bets in fintech categories
Selected Investor Activity in Financial Technology
The above count represents a subset of overall investor activity
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Num
ber o
f Inv
estm
ents
Number of Investments Number of Companies Backed
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M&A dominates the growing set of fintech exit activity
Exits within the fintech sector grew by 400% between 2010 and 2015, with 2016 on pace to be the year with highest amount of exits
Financial Technology M&A and IPO Events Over Time
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45
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Num
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f Exi
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Public Acquired
Financial Technology Quarterly Update
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Recent financial technology funding events
There have been 162 funding events in the past 90 days, providing $3.4 billion in capital
Funding Statistics from Last 90 Days*
Company Amount Funding Type
$449,000,000 Series F
$310,000,000 Series C
$300,000,000 Debt Financing
$220,000,000 Private Equity
$180,000,000 Series E
Notable Recent Fintech Funding Events
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Seed Series A
Series B
Series C
Series D
Late Stage
Fund
ing
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*Graph shows only the funding types listed therein
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Recent financial technology exit events
There have been 15 fintech exit events in the past 90 days, consisting of 12 acquisitions and 3 IPOs
Notable Recent Financial Technology Acquisitions
Company Acquirer Amount Date
$460,000,000 Oct 3, 2016
$130,000,000 Sept 14, 2016
$42,800,000 July 13, 2016
$40,000,000 Sept 30, 2016
$7,300,000 Sept 29, 2016
About Venture Scanner
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