+Global fintech mega-rounds fell to a new
low in Q316; second consecutive quarterly drop in fintech deals and dollars
+Median late-stage deal size in fintech fell to US$23 million in Q316
+Asia bucks trend with overall investment slated to reach new high in 2016
+Corporates continue to be highly active in Asia’s fintech investment environment
Venture capital (VC)-backed global fintech deal activity fell for the second consecutive quarter, marking its lowest level since Q214, according to the Pulse of Fintech, the quarterly report on global fintech VC trends published jointly by KPMG International and CB Insights.
VC-backed fintech funding dropped 17% to US$2.4 billion, while deal activity fell 12% to 178 deals in Q316 compared to the previous quarter. Asia was the only continent to see a fintech funding increase on a quarterly basis in Q316, while North America and Europe fintech funding declined. All three continents covered in the report saw fintech deal count drop.
“Asian investors are seeing the potential of fintech amidst global uncertainty in an environment of moderating growth,” said Chia Tek Yew, Head of Financial Services Advisory, KPMG in Singapore. “As businesses continue to embark on the journey of transformation, interest and investment in Asia’s fintech sector will continue to be strong, particularly in areas like payments technology, insurance technology and regulatory or risk technology.
Chia also noted that Singapore could pay a key role in fintech funding. “Singapore is a leading fintech hub, being one of the first countries in the world to put in place a regulatory fintech sandbox. There are also plans by the authorities to explore ways to attract more VC funds, which bodes well for the overall funding ecosystem,” he said.
While the number of VC-backed fintech deals dropped to a five-quarter low in Asia, funding increased 50% on a quarter-over-quarter basis to reach US$1.2 billion.
Year-to-date results of US$4.7 billion suggest Asia-based fintech investment for 2016 could top last year’s peak investment results of US$4.8 billion.
Corporates continue to be highly active in Asia’s fintech investment environment, participating in more than half of all deals to VC-backed fintech startups in Q316, the report stated.
Corporates participated in 30% of global VC-backed fintech deals for the second consecutive quarter in Q316, driving a significant number of fintech deals activity globally. Citigroup, Banco Santander and Goldman Sachs have made over 20 fintech investments in total over the past five quarters, while a host of insurers have launched corporate venture arms.
Other key highlights from the Pulse of Fintech:
• Global fintech mega-rounds fell to a new low in Q316. Asia saw US$50 million+ fintech rounds stay level for the fourth straight quarter, while Europe has not registered a single US$50 million+ round to a VC-backed fintech company so far in 2016.
• The median late-stage deal size in fintech globally fell to US$23 million in Q316. This is significantly smaller than the same quarter last year, when median late-stage fintech deal size hit US$50.2 million globally.
• Total year-to-date funding to VC-backed insurtech companies reached US$1.36 billion at the end of Q316. Insurtech-focused VC-backed deal activity topped 20 deals during three of the past five quarters.
• Next-gen payments have attracted US$1.2 billion+ in 2016 VC-backed funding (year-to-date). The top 20 deals raked in 67% of the total funding to payments technology companies in the first three quarters.
Anand Sanwal, CEO of CB Insights adds: “While we continue to see significant investment into fintech companies globally, the euphoria for mega-deals that we saw into the latter half of 2015 has waned. Total investments to key areas like marketplace lending and Blockchain technology have both seen declines heading into the tail-end of 2016.”
+Median late-stage deal size in fintech fell to US$23 million in Q316
+Asia bucks trend with overall investment slated to reach new high in 2016
+Corporates continue to be highly active in Asia’s fintech investment environment
 |
| Source: KPMG. Cover of the Pulse of Fintech report. |
Venture capital (VC)-backed global fintech deal activity fell for the second consecutive quarter, marking its lowest level since Q214, according to the Pulse of Fintech, the quarterly report on global fintech VC trends published jointly by KPMG International and CB Insights.
VC-backed fintech funding dropped 17% to US$2.4 billion, while deal activity fell 12% to 178 deals in Q316 compared to the previous quarter. Asia was the only continent to see a fintech funding increase on a quarterly basis in Q316, while North America and Europe fintech funding declined. All three continents covered in the report saw fintech deal count drop.
“Asian investors are seeing the potential of fintech amidst global uncertainty in an environment of moderating growth,” said Chia Tek Yew, Head of Financial Services Advisory, KPMG in Singapore. “As businesses continue to embark on the journey of transformation, interest and investment in Asia’s fintech sector will continue to be strong, particularly in areas like payments technology, insurance technology and regulatory or risk technology.
Chia also noted that Singapore could pay a key role in fintech funding. “Singapore is a leading fintech hub, being one of the first countries in the world to put in place a regulatory fintech sandbox. There are also plans by the authorities to explore ways to attract more VC funds, which bodes well for the overall funding ecosystem,” he said.
While the number of VC-backed fintech deals dropped to a five-quarter low in Asia, funding increased 50% on a quarter-over-quarter basis to reach US$1.2 billion.
Year-to-date results of US$4.7 billion suggest Asia-based fintech investment for 2016 could top last year’s peak investment results of US$4.8 billion.
Corporates continue to be highly active in Asia’s fintech investment environment, participating in more than half of all deals to VC-backed fintech startups in Q316, the report stated.
Corporates participated in 30% of global VC-backed fintech deals for the second consecutive quarter in Q316, driving a significant number of fintech deals activity globally. Citigroup, Banco Santander and Goldman Sachs have made over 20 fintech investments in total over the past five quarters, while a host of insurers have launched corporate venture arms.
Other key highlights from the Pulse of Fintech:
• Global fintech mega-rounds fell to a new low in Q316. Asia saw US$50 million+ fintech rounds stay level for the fourth straight quarter, while Europe has not registered a single US$50 million+ round to a VC-backed fintech company so far in 2016.
• The median late-stage deal size in fintech globally fell to US$23 million in Q316. This is significantly smaller than the same quarter last year, when median late-stage fintech deal size hit US$50.2 million globally.
• Total year-to-date funding to VC-backed insurtech companies reached US$1.36 billion at the end of Q316. Insurtech-focused VC-backed deal activity topped 20 deals during three of the past five quarters.
• Next-gen payments have attracted US$1.2 billion+ in 2016 VC-backed funding (year-to-date). The top 20 deals raked in 67% of the total funding to payments technology companies in the first three quarters.
Anand Sanwal, CEO of CB Insights adds: “While we continue to see significant investment into fintech companies globally, the euphoria for mega-deals that we saw into the latter half of 2015 has waned. Total investments to key areas like marketplace lending and Blockchain technology have both seen declines heading into the tail-end of 2016.”
posted from Bloggeroid
No comments:
Post a Comment