A report providing an overview of the Financial Technology startup landscape, graphical trends and insights, and recent funding and exit events. Contact info@venturescanner.com to learn more!
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Venture Scanner Fintech Report Q1 2017
1. Venture Scanner is your analyst and technology-powered startup research firm
Financial Technology
Startup Landscape Trends and Insights
January, 2017
2. Financial technology report outline
2
This report provides an overview of the Financial Technology sector and is
broken down into three sections
Sector Description
High-level sector metrics
with sub-category
definitions
Trends & Insights
Infographics and data
points for the Financial
Technology 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
4. Fintech startups are creating new businesses and disrupting old ones
The graphic above shows a sampling of companies in each category, stats as of January 2017 4
Financial
Technology
Learn about our full 2,051 company
report with $58B in funding
Lending Personal Finance Payments Equity Financing Remittances
Retail Investing Institutional Investing
Security Online Banking Research & DataCrowdfundingBusiness ToolsInfrastructure
5. Innovation quadrant for financial technology
AVERAGE FUNDING ($M)
AVERAGEAGE(YEARS)
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
This quadrant shows a relative segmentation of the categories with respect to one another 5
Payments Backend
Banking Infrastructure
Financial
Security
Remittance
Institutional Investing
Research and Data
Consumer Payments
SMB Tools
POS Payments
Personal Finance
Consumer
Lending
Business Lending
Digital Banking
Equity Finance
Crowdfunding
Retail Investing
6. Fintech startups play in many different categories (1 of 3)
6
Banking Infrastructure
129 Startups, $1.8B Total Funding
Companies that improve the operation of
financial institutions, including banking API
services and big data analytics.
Category stats as of January 2017
Consumer and Commercial Banking
71 Startups, $2.3B Total Funding
Companies that provide digital banking
services, such as internet-only banking
institutions and virtual credit cards.
Consumer Payments
192 Startups, $10B Total Funding
Companies centered around issuers and
consumers, including mobile wallets, credit
card aggregators, and peer-to-peer payments.
Business Lending
200 Startups, $11B Total Funding
Companies that offer new ways for businesses
to obtain business loans and have their credit
risk assessed.
Consumer Lending
275 Startups, $18B Total Funding
Companies that offer new ways for consumers
to obtain personal loans and have their credit
risk assessed.
Crowdfunding
75 Startups, $512M Total Funding
Companies that help users raise non-equity
and non-debt financing, such as platforms for
products, social causes, and creative projects.
7. Fintech startups play in many different categories (2 of 3)
7
Equity Financing
140 Startups, $750M Total Funding
Companies that help businesses raise capital in
exchange for equity, includes crowdsourcing
platforms and secondary markets.
Category stats as of January 2017
Financial Transaction Security
103 Startups, $1.6B Total Funding
Companies that help secure transactions,
authenticate users, and prevent fraud, using
tools like algorithms and big data.
International Money Transfer
66 Startups, $1.5B Total Funding
Companies that allow for the sending of money
abroad easily and cheaply, such as digital
remittances, mobile top-off, and gift cards.
Financial Research and Data
79 Startups, $831M Total Funding
Companies that provide information services
that enable investors to make better decisions,
includes API and custom research sources.
Institutional Investing
157 Startups, $1B Total Funding
Companies that help professional traders and
wealth managers manage their portfolios and
optimize their returns.
Payments Backend and Infrastructure
189 Startups, $11B Total Funding
Companies centered around the infrastructure
enabling payments, such as online payment
gateways and back-ends for web/mobile apps.
8. Fintech startups play in many different categories (3 of 3)
8
Personal Finance
205 Startups, $3B Total Funding
Companies that help consumers manage their
finances, such as tracking expenses, managing
a budget, and optimizing reward points.
Category stats as of January 2017
Retail Investing
156 Startups, $1.8B Total Funding
Companies that provide new ways for
consumers to invest in securities, including
robo-investors and social investing networks.
Point of Sale Payments
176 Startups, $8B Total Funding
Companies centered around acquirers,
includes mobile POS terminals and
streamlined POS methods (palm scanners, etc).
Small and Medium Business Tools
199 Startups, $7.3B Total Funding
Companies that help business manage their
finances, including tools for payroll, invoicing
and accounting.
10. 10
Venture investing into the space is dominated by lending and payments
The payments and lending categories account for 72% of all venture funding
and 43% of total companies in the fintech startup sector
Venture Investing in Financial Technology
Companies are categorized by function, and therefore can exist in multiple categories
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50
100
150
200
250
300
0.0
2.0
4.0
6.0
8.0
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20.0
CompanyCount
TotalFunding($B)
VC Funding Count
11. 11
VC funding into fintech has grown substantially in recent years
Overall fintech VC funding grew at a CAGR of 47% from 2011-2016
Financial Technology Funding Over Time
0
2
4
6
8
10
12
14
16
18
20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)
12. 12
Fintech startups continue to show traction
Financial Technology Funding Amount by Type
2016 saw an expansion in Series B funding, implying new ideas are bearing
fruit and convincing VCs to provide additional funding
Graph shows only the funding types listed therein
-
2
4
6
8
10
12
14
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Funding($B)
Late Stage Series D Series C Series B Series A Seed
13. 13
Fintech startups founded in 2011 lead in VC funding
Startups founded in 2011 account for 17% of the sector funding over the last
decade, and includes companies like Lufax, SoFi, and CommonBond
Financial Technology Funding By Vintage Year
0
1
2
3
4
5
6
7
8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
TotalFunding($B)
Year Founded
14. 14
Fintech startups are a global phenomenon
Financial Technology Startup Count by Country
0 1,040
Companies
15. 15
Top VC investors are making bets into fintech
Selected Investor Activity in Financial Technology
The above count represents a subset of overall investor activity
0
10
20
30
40
50
60
70
80
NumberofInvestments
Number of Investments Number of Companies Backed
16. 16
Fintech exit activity is healthy and growing
Exit events within the fintech sector grew by 850% between 2011 and 2016
Financial Technology M&A and IPO Events
0
10
20
30
40
50
60
70
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
NumberofExits
Public Acquired
18. 18
Recent fintech funding events
There have been 278 fintech funding events in the past 90 days
Financial Technology Funding Type Counts from Previous 90 Days
Graph shows only the funding types listed therein
0
5
10
15
20
25
30
35
40
45
Seed Series A Series B Series C Series D Late Stage
FundingEventCount
19. 19
Recent fintech funding amounts
Notable Recent Financial Technology Funding Events
Company Funding Type Amount Date
Debt Financing $200,000,000 Dec 9, 2016
Series E $180,000,000 Oct 5, 2016
Series D $150,000,000 Nov 25, 2016
Series F $100,000,000 Jan 11, 2016
Debt Financing $100,000,000 Dec 16, 2016
Fintech startups raised $2.9 billion in the past 90 days
20. 20
Notable recent fintech funding events
Notable Recent Financial Technology Acquisitions
Company Acquirer Amount Date
$2,700,000,000 Oct 23, 2016
$460,000,000 Oct 3, 2016
$180,000,000 Oct 14, 2016
$20,000,000 Jan 9, 2017
Unknown Jan 10, 2017
There have been 16 exit events in the past 90 days,
consisting of 14 acquisitions and 2 IPOs
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22
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