FinTech Industry Report 2016

About SparkLabs Global
SparkLabs Global Ventures is a new seed-stage fund founded by entrepreneurs. We are a global fund that believes exceptional entrepreneurs
can be found anywhere, and have invested in 58 companies across the globe since December 2013 including 13 FinTech companies in the
U.S., UK, and Sweden. SparkLabs Global was also the only follow-on fund for the inaugural cohort of Barclays Accelerator program.

RISE OF FINTECH
MARKET
SIDE
GOVERNMENT SIDE
FinTech’s Emergence
CUTTING-EDGE ICT TECHNOLOGIES
+
STARTPHONE ADOPTION
CHANGE IN CONSUMER
PREFERENCE ON TRANSACTION
METHODS
DEMAND FOR ALTERNATIVE
FINANCE
AFTER FINANCIAL CRISIS
GOVERNMENT SUPPORT
+
REGULATORY BARRIER REDUCTION
3 Factors that Drive the Emergence and Growth of FinTech
There are three main factors from a consumer perspectives that led to the emergence of fintech innovation and startups. First, new ICT technologies (e.g. SNS, cloud-
computing and IoT) combined with the high adoption rate of smartphones allowed consumers to access high quality information that they were not able to find
from traditional financial institutions. Second, key customer groups, especially millennials, prefer conducting financial transactions via mobile over other avenues.
Third, after the sub-prime financial crisis in 2008, both credibility and profitability of traditional financial institutions declined, which led to increased demand for
alternative finance.
Lastly, governments around the world started to recognize how the growth of the fintech companies are creating new jobs and boosting economic growth.Thus,
they started to take active roles in nurturing fintech startups and lifting relevant regulations to spur innovation and growth in this new frontier.

Startups to establish technology companies, such as Tencent and Paypal, are working to disrupt and capture market share from
traditional ﬁnancial institutions, which are truly giants compared with the upstarts of today. Just look at a snapshot (slide 8) of
assets under management of leading startups in wealth management, such as Wealthfront and Betterment, compared with
established institutions such as Bank of America or Morgan Stanley’s wealth management groups. They manage over a trillion
dollars compared with a couple billion dollars under Betterment and Wealthfront.
The ﬁnancial sector represents 7% of the U.S. economy, and has grown over the past decade but with the loss of trust since the
last economic crisis and rapid pace of innovation nothing is too big to fail. Wells Fargo had over $86 billion in revenues in 2015
with a market cap of $254 billion, but Nokia in 2000 had a market cap of $300 billion with $28 billion in revenues.Today, Nokia
is down to a market cap of $26 billion and a shell of its former self. In 2008, Nokia had 38% of the global mobile phone market
and today it’s down to a couple percentage points of the global smartphone market.
Disrupting the Global Financial System

Innovation Knocking on the Doors of Giants
We believe there are a wealth of opportunities
for startups and established tech companies to
disrupt the financial sector. Here is a look at just
4 areas that are being challenged and changed
today: digital payments, consumer finance,
business financing, and cyber currency.
Each of these areas are broad categories and
can contain multiple vertical industries.
Consumer finance contains wealth management,
peer-to-peer lending, new credit scoring systems
and many others.
Unbundling the Financial Sector
Digital Payments
Consumer Finance
Business Financing
Cyber Currency
TRADITIONAL
FINANCIAL
INSTITUTIONS
• Commercial Banks
• Private Banks
• Credit Card Operators
• Brokerages
• Insurance Companies
• Credit Rating Agencies

"I think two key tectonic shifts are happening due to the increased power
of data analytics and also shifts in consumer behavior around asset
ownership. This will create a whole new way to assess asset-backed
risk/return in the financial markets, particularly when talking about specific
financeable assets with --now-- clearer revenue streams and ROI attached
to them...Think about how the world of energy and transportation could
be financed via new Fintech instruments, for example ... The world is
moving to a usage model rather an ownership model and
Fintech will morph to serve that in much better ways. It is an
exciting and much more efficient use of capital.”
Sergio Monsalve, Partner at Norwest Venture Partners
Norwest has invested in
Lending Club, Shriram City,
Motif, Yes Bank, IndusInd
Bank, RBL Bank, ING Vysya
Bank and others.

Largest Banks in the World by Assets
1.  Industrial & Comm Bank of China
2.  China Construction Bank
3.  Agricultural Bank of China
4.  HSBC Holdings (UK)
5.  Bank of China
6.  JP Morgan Chase
7.  BNP Paribas (France)
8.  Mitsubishi UFJ Financial Group
9.  Bank of America
10.  Credit Agricole Group (France)
11.  Deutsche Bank (Germany)
12.  Barclays PLC (UK)
13.  Citigroup
14.  Wells Fargo
15.  Japan Post Bank
Largest Banks in the U.S. by Assets
3.  Wells Fargo
4.  Citigroup
5.  U.S. Bancorp
*Federal Reserve Statistics
$1.91 Trillion (2015)
$1.63 Trillion
$1.61 Trillion
$1.29 Trillion
$ 417 Billion
$3.61 Trillion (2015)
$2.93 Trillion
$2.81 Trillion
$2.67 Trillion
$2.63 Trillion
$2.44 Trillion
$2.40 Trillion
$2.32 Trillion
$2.15 Trillion
$1.91 Trillion
$1.90 Trillion
$1.88 Trillion
$1.83 Trillion
$1.79 Trillion
$1.70 Trillion
*Please note the accounting treatment affects the assets reported. For example, the U.S. uses US GAAP (as opposed to IFRS), which only reports the net derivative position in most cases, leading to U.S. banks having fewer derivative assets, than comparable
non-U.S. banks. (Wikipedia)

Largest Banks in the World by Market Cap
1.  Wells Fargo
2.  Industrial & Comm Bank of China
4.  China Construction Bank
5.  Agriculture Bank of China
6.  Bank of China
8.  HSBC Holdings (UK)
9.  Citigroup
10.  Commonwealth Bank of Australia
11.  Westpac Banking Corp (AU)
12.  Royal Bank of Canada
13.  Toronto-Dominion Bank
14.  Lloyds Banking Group (UK)
15.  Banco Santander (Spain)
Largest Banks in the U.S. by Market Cap
1.  Wells Fargo
4.  Citigroup
5.  U.S. Bancorp
Number of Domestic Branches
3.  Wells Fargo
4.  Citigroup
5.  U.S. Bank
$254.2 Billion (2015)
$217.8 Billion
$142.4 Billion
$126.7 Billion
$ 70.2 Billion
$254.2 Billion (2015)
$226.6 Billion
$217.8 Billion
$155.9 Billion
$155.0 Billion
$144.2 Billion
$142.4 Billion
$128.9 Billion
$126.7 Billion
$ 99.7 Billion
$ 83.5 Billion
$ 83.4 Billion
$ 77.1 Billion
$ 73.8 Billion
$ 71.2 Billion
5,420
4,787
6,233
794
3,223

Largest U.S. Wealth Managers / AUM
1.  Bank of America Global Wealth
2.  Morgan Stanley Wealth
3.  JP Morgan
4.  Wells Fargo
5.  UBS Wealth Management
6.  Goldman Sachs
7.  BNY Mellon Wealth Management
8.  Fidelity (Wealth)
9.  Northern Trust
10.  Citigroup
11.  Credit Suisse
12.  Raymond James Financial
13.  Deutsche Asset & Wealth Mgmt
14.  RBC Wealth Management
15.  Bessemer Trust
Online Wealth Managers / AUM
1.  Betterment
2.  Wealthfront
3.  Personal Capital
*Assets Under Management (AUM)
$3.0 Billion (2015)
$2.6 Billion
$2.0 Billion
$1.12 Trillion (2014)
$986.7 Billion
$617.0 Billion
$508.0 Billion
$499.0 Billion
$240.4 Billion
$215.1 Billion
$200.0 Billion
$196.7 Billion
$119.0 Billion
$106.0 Billion
$102.9 Billion
$ 86.0 Billion
$ 76.1 Billion
$ 67.3 Billion

Largest Asset Management Firms / AUM
1.  Black Rock
2.  Vanguard Group
3.  State Street Global Advisors
4.  Fidelity
5.  Allianz Group (Germany)
6.  UBS Group (Switzerland)
7.  JP Morgan Asset Management
8.  BNY Mellon Investment Mgmt
9.  PIMCO
10.  Credit Agricile Group (France)
11.  Credit Suisse Group (Switzerland)
12.  AXA Group (France)
13.  Capital Group
14.  Deutsche Asset & Wealth Mgmt
15.  Prudential Financial
* PIMCO operates as a separate and autonomous subsidiary of Allianz
Largest U.S. Asset Management Firms
1.  Black Rock
2.  Vanguard Group
3.  State Street Global
4.  Fidelity
5.  JP Morgan Asset
$4.50 Trillion (2015)
$3.29 Trillion
$2.26 Trillion
$2.07 Trillion
$1.78 Trillion
$4.50 Trillion (2015)
$3.29 Trillion
$2.26 Trillion
$2.07 Trillion
$2.03 Trillion
$1.97 Trillion (2014)
$1.78 Trillion
$1.63 Trillion
$1.47 Trillion
$1.53 Trillion
$1.47 Trillion
$1.38 Trillion (2014)
$1.39 Trillion (2014)
$1.22 Trillion
$1.17 Trillion

Publicly Traded Private Equity Funds
1.  KKR
2.  Carlyle Group
Market Cap: $10.3 Billion (5/16)
Revenues: $1.0B (2015)
Publicly Traded Investment Banks
1.  Goldman Sachs
2.  Morgan Stanley
Revenues: $39.4B (2015)
Revenues: $37.9B (2015)
Retail Brokerage Firms
1.  Charles Schwab
2.  E*Trade
3.  TD Ameritrade
4.  Edward Jones
Revenues: $472 Million (2015)
Revenues: $3.2 B (2015)
Market Cap: Private Company

Leading Credit Card Companies
1.  MasterCard
2.  Visa
3.  AMEX
4.  Discover
Market Cap: $102 Billion (5/16)
Market Cap: $184 Billion (5/16)
Revenues: $13.9B (2015)
Revenues: $13.9B (2015)
Revenues: $10.0B (2015)
2013 2014
(millions of cards)
526
545
563 576
54 57
Source: CreditCards.com

2013 2014
2013 2014
(millions of cards)
285
$1,100
$1,200
$560
$607 $637
$668
$123 $129
53
304
178 191
55
U.S. Credit Card Market Overview
Source: CreditCards.com Source: CreditCards.com

U.S. Consumer & Credit Card Debt
Average U.S. Household Debt $130,922
Total U.S. Consumer Debt $3.4 trillion
Average Credit Card Debt $16,048
Total Credit Card Debt $762 billion
*Federal Reserve
*Consumer Finance Survey
Global Household Debt
% of Net Disposable Income for OECD Countries

Leading Public FinTech Companies
1.  Paypal
2.  Square
3.  Envestnet
4.  Lending Club
5.  On Deck Capital
Revenues: $420.9 Million (2015)
Revenues: $980M (2015)
Market Cap: $302.8 Million (5/16)
Revenues: $254.8M (2015)
“Goldman Sachs estimates that when peer-to-peer (lending) comes
of age, it could reduce proﬁts at America’s banks by $11 billion,
or 7%.”
The Economist, May 2015
"The incumbents risk becoming merely capital-providing
utilities that operate in a highly regulated, less proﬁtable
environment, a situation unlikely to be tolerated by shareholders.”
Antony Jenkins, former CEO of Barclays
“Jenkins, who was ousted as Barclays CEO in July, says a new wave of
tech-savvy startups that can do things better, faster, and cheaper than
the big banks will disrupt their traditional businesses like
lending, payments, and wealth management.”
Business Insider, Nov. 26th, 2015

GLOBAL TRANSACTION VALUE AND SHARE OF SEGMENTS
3.0%
8.3%
0.4%
0.4%
6.8%
2.6%
13.2%
65.3%
0.5%
2.7%
0.1%
0.1%
0.9%
1.2%
1.0%
93.6%
Consumer Lending Platforms
Automated Investment Service
Factoring Platforms
Crowdfounding
Business Lending Platforms
Online P2P Money Transfers
Mobile Wallet Pos Payments
Online Payments
Consume
rFinance
Business
Finance
Digital
Payments
2015 2020
11%
8%
81%
3%
1%
96%
Consumer Finance
Business Finance
Digital Payments
2015 2020(E)
Although the digital payment segment is currently dominating the fintech market, new fintech companies are expanding to business and consumer
finance segments through P2P platform business models and process automation.
Breakdown of Digital Transactions
Source: Statista 2015

1,592,478
1,927,522
2,355,939
2,888,140
3,525,513
4,227,750
5,032,996
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2014 2015 2016(E) 2017(E) 2018(E) 2019(E) 2020(E)
MARKET SIZE BY TRANSACTION VOLUME (millions of USD)
Country Transaction Volume
United States $769,323.4 M
China $441,017.1 M
United Kingdom $168,521.7 M
Japan $138,191.2 M
Germany $121,017.9 M
TRANSACTION VOLUME BY COUNTRY
Market Size and Growth
Source: Statista 2015

"What excites me most about what WorldCover is doing is that we can
provide clear social impact through finance at a distance.What I mean by
that is there are people in the United States and other developed markets
holding trillions of dollars of capital and striving for great returns and--for a
growing many--social impact. Meanwhile there are billions of people
around the world who lack a financial safety net when disaster strikes. By
applying technology and fundamentally rethinking what
insurance should look like, WorldCover solves both problems. We
allow capital to flow freely across borders and cultures from those who have
it to those who need it most.”
Christopher Sheenan, Co-founder & CEO of Worldcover
WorldCover is a peer-to-peer
lending platform protects
farmers from natural
disasters and gives investors
diversified returns and direct
social impact. WorldCover’s
investors include
Y Combinator and prominent
angels in Silicon Valley.

Layers of Disruption in FinTech
© SparkLabs Global Ventures︎
Attacking the Core
Our team believes the initial activity
and transaction volume will be from
the first layers of disruption in
fintech (i.e. banking tech,
payments), but long-term and
more game-changing innovations
will occur in the next layers.
Ultimately, this will lead to new
startups and technologies
changing the core of the finance
sector: commercial banking and
insurance (life, health, property).

Layers of Disruption in FinTech
Banking Tech
Analytics
Data Management
CRM
Security
Payments
Online B2C Commerce
Mobile Wallet POS
P2P Money Transfer
Payment Solutions
Cyber Currency
Blockchain
Bitcoin
Digital Wallets
Cryptocurrency Exchange
Business Finance
P2P Business Lending
Credit Lines for Business
Crowdfunding
Consumer Finance
P2P Consumer Lending
Robo Advisors
Personal Finance Mgmt
Mortgage Lending
Credit Assessment
Alternative Cores
Alternative Health Insurance
Alternative Car Insurance
Alternative Property Insurance
Digital Banks

2.4 2.8
3.9
12.2
19.1
2.1 2.4 2.8
6.7
13.8
457
607
759
933
1162
298
397
484 587
653
0
200
400
600
800
1000
1200
1400
0
5
10
15
20
25
2011 2012 2013 2014 2015
Overall Investment VC-Backed Investment
Overall Deals VC-Backed Deals
•  Overall investment includes funding by angel investors, angel groups, private equity firms,
•  mutual funds, hedge funds, VC, corporate, corporate VC investors.
MAJOR INVESTMENT TRENDS
CAGR for Global FinTech Investment
Between 2011 and 2015, in terms of dollar amount, CAGR of overall investment was
68%, and CAGR of VC investment was 60.1%.
2015 FinTech Funding Doubled 2014 Total
Globally, funding to VC-backed Companies in 2015 hit an all-time high of $13.8B, up
106% versus 2014’s total of $6.7B.
Mega-rounds Spread Through Fintech
Between 2011 and 2013, there were fewer than fifteen $50M+ rounds to venture-
backed fintech companies in aggregate. In 2015 alone, the number of $50M+
fintech deals jumped past 60.
Corporates Active in 1 of Every 4 Fintech Deals
Corporates have participated in 25% or more of all fintech deals for 3 quarters
straight, as corporates in financial services, telecom and technology become
increasingly active.
INVESTMENT DEALS & AMOUNT in USD Billions
Investment Trends in FinTech

"As Larry Summers said at the Consensus Conference in early May,
anyone who doesn't think blockchain technologies will have a
significant impact on the major systems of the world is
probably wrong. What's still unclear - aside from their use at the heart
of Bitcoin, Ethereum, and every major digital currency – is precisely how
and where. There are lots of distributed-database applications for which a
traditional database will be more than suitable. But anywhere you're
building a network that has to be resilient in the face of bad actors
(intentional or not) and where you want to avoid granting just one
company or government the ability to control the ecosystem, you're
going to want a blockchain.”
Brian Behlendorf, Executive Director of the Hyperledger Project
The Hyperledger Project is a
collaborative effort created
to advance blockchain
technology for a cross-
industry open standard for
distributed ledgers that can
transform the way business
transactions are conducted
globally.

Bitcoin & Blockchain Bounce Back
in Q1 2016
CB Insight’s recent research showed that
investment into bitcoin and blockchain bounced
back in Q1 2016 after a downward trend since
Q2 2015.
Q1 2016 had a 385% increase in funding. These
include Digital Asset Holdings’ $60M Series A,
bitFlyer’s $26M Series C and Blockstream’s $55M
Series A.

Financial Services and Strategic
Investors in Blockchain and
Bitcoin Startups
CB Insight’s research revealed that all of 2015's largest
blockchain and bitcoin investments involved strategic
and corporate investors, such as Google, Cisco,
Goldman Sachs,Visa, BBVA, and AXA.

U.S.’s Tremors of Disruption
Most Mature
The U.S. market stands as the
most mature and active in
startup activity and investments.
The ﬁnance sector in the U.S.
is being challenged on multiple
fronts.

First Wave of New Lenders
Market Potential and Profit Loss
The leading peer-to-peer consumer lender, Lending Club, has arranged over $9 billion since it launched in 2007.As a comparison, Bank of
America’s consumer loan portfolio was $489 billion in 2014 (breakdown above). As startups attack the revenue streams of banks, they will
slowly erode the proﬁtability of traditional institutions in each of these areas. Already half of all commercial (retail) bank customers are unproﬁtable.
Bank of America’s
Consumer Loan
Portfolio

"Financial wellness is a new secular trend and financial
well-being will become the most important
operating metric for next generation financial
services. Do your ﬁnancial products help or hurt your
customers? Our science and aligned products and services
are designed to help people improve their ﬁnancial
well-being and position us to lead in building trust-based
and long-term relationships with consumers.”
Scott Saunders, Co-founder & CEO of Payoff
Payoff’s investors include
Mohamed El-Erian, Anthemis
Group, Great Oaks Venture
Capital, and SparkLabs Global
Ventures.

Company Details Funding Investors
SoFi[San Francisco, 2011]: SoFi is a marketplace that connects alumni borrowers and investors for refinancing
private and federal student loans. Investors get market returns, while borrowers get lower interest rates. Benefits
like events, career advising, seed funding and professional mentorship deliver value beyond a traditional bank.
Also offers mortgages, mortgage refinancing, and personal loans. Sofi has as over $7B in loans issued and more
than 12k members.
$1.5B
Peter Thiel, Renren, Baseline Ventures, DCM,
Institutional Venture Partners, Softbank, Baseline
Ventures
Avant[Chicago, 2012]: Avant is an online personal lending platform. It screens applications borrowers on the
basis of FICO scores.The amount of principal lent is arrived at by taking into account income levels, credit history
scores, and other criteria.Avant operates in 46 U.S. states and in the United Kingdom.Avant Institutional
Marketplace enables qualified institutional investors the ability to purchase loans originated through the Avant
technology platform.The company has raised more than $1B in debt.The platform has lent 3 billion dollars
between 450,000 borrowers.
$655M
August Capital,Jefferies, Draper Fisher Jurvetson
(DFJ), RRE Ventures, Kohlberg Kravis Roberts,
Tiger Global,JPMorgan Chase, CREDIT SUISSE,
DFJ Growth, General Atlantic
Affirm[San Francisco, 2012]: Affirm is a millennial focused financing platform offering Point of Sale loans to
online shoppers. Its proprietary underwriting model processes borrower's data, sourced from merchant's website
via an API, along with data points from alternative sources, like social networking websites, to arrive at a credit
decision.The company monetizes from the interest charged on the loans and the processing fee charged from
merchants. It also offers a single usage credit card which can be used at non-partner merchants' websites.
$420M
Spark Capital,Andreessen Horowitz, Lightspeed
Venture Partners, Khosla Ventures, Founders Fund
CONSUMER FINANCE: Consumer Lending Startups

LendUp[San Francisco, 2012]: LendUp is a direct lender and has created a product that allows small-dollar loans as an
opportunity for consumers to build credit and move up the financial ladder. Consumers who have poor or no credit can apply
for and receive small-dollar, short-term loans. LendUp uses big data to do instant risk analysis and evaluate credit worthiness.
Incubated at Y Combinator in Winter 2012. In April 2014 it launched its API using which other companies and organizations
can integrate LendUp’s loan-processing tools into their own product, or even build their own financial and loan service with a
white-label option. In 2015, the L Card, a credit card business, launched in beta.
$164M
KPCB,Andreessen Horowitz, Google
Ventures,Thomvest Ventures, Kapor
Capital, Data Collective, SVAngel
CommonBond[Brooklyn, 2011]: CommonBond is a B2C lending marketplace that allows students to finance their
education or refinance their student loan debt.The principal amount available for borrowing extends up to $220,000, with
fixed and flexible interest rates available for repayments.The portal charges no fee for prepayment of the amount.
$147M
Macquarie Group, Barclays,August,
Tribeca Venture Partners, Social Capital
Earnest[San Francisco, 2013]: Earnest is a lending platform for students that provides an opportunity to lower education
debt. The platform offers loans that have flexible terms such as unemployment protection, an option to switch between fixed
and variable rates, and deferring payments to a later date in the investment term. The portal does not charge any origination
or prepayment fees, and claims to earn its revenue from the interest charged. It also offers personal loans for various reasons
like career development, vacations, wedding rings etc.
$107M
Maveron,Andreessen Horowitz,
Collaborative Fund, First Round Capital,
Battery Ventures,Adams Street Partners,
New York Life Insurance Company

Betterment [New York City, 2008]: Betterment is a goal-based online investment company that allows users to select how
much they want invested in stock and Bonds ETFs. No minimum deposit to open an account.The management fees charged range
from 0.15% to 0.35% based on the account balance.The company also offers a B2B2C platform for RIAs and a 401(K) investment
platform.
$205M
Bessemer,Anthemis Group,
Francisco Partners, Citi Ventures,
Kinnevik, anthemis
Wealthfront[Palo Alto, 2008]: Wealthfront is an automated investment management service that uses modern portfolio the
ory to deliver long-term returns. Low cost ETFs are used to represent each asset class. Stock allocations include US, foreign and
emerging markets. Likewise, bond allocations include municipal, corporate and emerging markets.Alternative allocations in real
estate and natural resources.
$129M
Index Ventures, Ribbit Capital,
Greylock Partners, DAG Ventures,
Social Capital
Motif Investing [San Mateo, 2010]: Motif is an online investment platform that enables users to create a basket (called a
motif) of stocks and ETFs. Once built, an investor can buy a motif of up to 30 stocks and ETFs for $9.95. Investors can create their own
motifs, invest in motifs built by Motif Investing, or invest in motifs built by other investors on the platform. Customers can start with
$250 investment.Also provides a free service called Horizon motifs which are motifs comprised of low-cost ETFs.
$126M
Foundation Capital, Norwest, Ignition
Partners, Goldman Sachs, Balderton,
JP Morgan Chase, Renren
Personal Capital [Redwood City, 2009]: Personal Capital offers two distinct services.The online and mobile portfolio
tracking application downloads user's holdings in different accounts, aggregates and analyzes them into tables and charts. Helps user
view all accounts in one place and is a free service. Second service offers to manage users' investment account. Users get a live
person as advisor.
$104M
IVP,Venrock, Crosslink Capital,
BlackRock, USAA, BBVAVentures
CONSUMER FINANCE: Robo Advisor Startups

Biz2Credit[New York City, 2007]: Biz2Credit is a multi solution credit source for small businesses.The platform offers
credit products such as SBA loans, traditional bank loans, business lines of credit, equipment financing, business acquisition
loans, commercial real estate loans, refinancing and merchant cash advances.The amount borrowed from the platform can rage
from $5,000 to $5M. Biz2Credit charges borrowers an underwriting fee once a loan has been successfully granted. Biz2Credit has
arranged for $1.2 billion worth of credit for over 100,000 companies.
$250M Direct Lending Investments
Kabbage[Atlanta, 2009]: Kabbage is a provider of working capital loans for small businesses. It leverages data generated
through business activity such as seller channels, social media, shipping data, and other sources to understand performance and
delivers financing options for small businesses.The loans are made by Celtic Bank. In addition to this, Kabbage also provides
white label platforms to companies wanting to start their own lending platforms. In 2015, it launched a white-label offering
where third parties will power loan services using Kabbage’s technology.
$240M
Guggenheim Partners, Mohr Davidow
Ventures, BlueRun Ventures,Thomvest
Ventures, SoftBank, UPS, Santander
InnoVentures,Western Tech, SVAngel,
TPG Capital
OnDeck[New York City, 2007]: OnDeck is a technology powered lending company for SMBs. It leverages electronic
information including online banking and merchant processing data to identify the creditworthiness of small businesses.
Repayments are made through fixed daily deductions from the business bank account and the loans are usually secured by liens
on business assets and personal guarantee. Loans range from $5k to $250k.To date, OnDeck had funded more than $4 billion in
loans since its inception.
$198M
IVP, RRE Ventures, Google Ventures,
First Round Capital,Tiger Global,
Khosla Ventures
BUSINESS FINANCE: Commercial Loan Startups

Behalf[New York City, 2011]: Behalf is an alternate lending platform that offers a line of credit for purchases to businesses.The
platform does not disburse any credit to the borrower, it instead handles the purchase requirements of the borrowers by dealing with
their vendors directly.This principal of operations mitigates any mismanagement of funds by the borrower.
$129M
Spark Capital, Sequoia Capital,
Victory Park Capital, Maverick
Ventures Israel
LendingHome[San Francisco, 2013]: Lending Home is an online mortgage marketplace for real estate loan borrowers,
investors, and brokers. It allows both institutional investors and accredited retail investors to invest on its platform. Institutional investors
including hedge funds, private equity, mortgage desks, family offices, university endowments can start investing with a minimum
investment amount of US$10,000 and retail investors from US$1,000. Lending Home is a direct lender and sells whole loans to
institutional or retail investors.
$109M
Foundation Capital, Ribbit Capital,
Renren, Cowboy Ventures,
First Round Capital
Super G Funding [Newport Beach, 2008]: Super G Funding is a national provider of business financing solutions with loans
ranging in size from $100,000 – $5,000,000. Super G makes loans up to five times the value of an ISO’s revenue stream, with a
maximum value of $2 million. Revenues streams include core processing revenues and recurring fee revenues from terminal leasing,
prepaid cards, and gateway and check-guarantee services. ISOs can take loans for 12, 24, or 36 months on which they are typically
charged an interest rate between 17% and 19%.
$100M Discovery Capital
CAN Capital [New York City, 1998]: CANCapital is a credit source for small businesses, the portal offers term loans and merchant
cash advances to borrowers.The business loans can range from $2,500 to $150,000 for a term not exceeding 24 months.The merchant
cash advances are future credit card sales bought by the platform at a discount, and are repaid in as a percentage of sales weekly.The
company has been in operation for seventeen years and funded over 156,000 small businesses.
$93M
Accel Partners, Meritech Capital
Partners, Ribbit Capital,
Wells Fargo Bank

Stripe[San Francisco, 2010]: Stripe is an online and mobile payment transaction processor. It provides APIs to help
businesses accept various modes of payments from the latter's customers.The main products offered by Stripe are Stripe
Checkout – an online and mobile payment gateway API, Stripe Connect – a white label payment API aimed at resellers and
third party payment gateways, developer APIs – available in multiple languages. Its proprietary product stripe.js, is one of the
earliest to allow merchants and businesses to accept payments on their sites without meeting the necessary PCI compliance
requirements, as the card details are securely stored in Stripe’s servers instead of merchants’.
$300M
Founders Fund, Khosla Ventures, Sequoia
Capital,Allen & Company,AMEX,VISA,
KPCB,Andreessen Horowitz, General
Catalyst, Redpoint,Y Combinator,
Thrive Capital
Coinbase[San Francisco, 2012]: Coinbase is a bitcoin wallet and platform where merchants and consumers can transact
in bitcoin. Coinbase offers an exchange for Bitcoins, payment gateway for online merchants to accept Bitcoins and also
provides APIs for developers.As of March 2016, the company claims to have served 3.4M customers from 32 countries and
exchanged approximately $3.5B. It offers a mobile wallet and also provides Insurance protection for coins stored on their
servers.
$106M
Andreessen Horowitz, Union Square
Ventures, Ribbit Capital,Y Combinator, IDG
Ventures, SVAngel, New York Stock
Exchange, DFJ Growth, USAA, BBVA,
DoCoMo,Valor Capital
Vanco Payment Solutions [Atlanta, 2007]: Vanco Payment Solutions, earlier known as Veracity Payment
Solutions, offers specialized payment solutions across multiple industries, including faith-based organizations, nonproﬁts, and
professional services companies.The services offered include (a) payment gateway services - including credit/debit card
processing, issue of prepaid gift cards, mPOS, web and text based donations, payment hardware services including
POS terminals and card readers.
$80M Great Hill Partners
PAYMENTS: Payment Solution Startups

WePay[Palo Alto, 2008]: WePay has built its API specifically for platform businesses like marketplaces, crowdfunding sites and
small business software.Through its proprietary Veda social risk engine,WePay gives platforms a flexible payments API that provides
a great user experience while still being able to take on all their fraud risk and compliance burdens. WePay has processed transactions
for more than 200,000 customers and 280+ partners.
$73M
Y Combinator,August Capital,
Highland Capital
Braintree[Chicago, 2007]: Braintree provides developers a full-stack platform to accept payments on their website and app.
Provides hosted and API gateways to businesses.Also offers marketplace payment solutions, recurring billing and fraud protection
services. Processes more than $10 billion annually (with more than $2 billion on mobile) for thousands of online and mobile commerce
innovators including Airbnb, Fab, LivingSocial, OpenTable and Uber. Acquired by eBay's PayPal for $800M in Sep 2013.
$69M
Accel Partners, New Enterprise
Associates, QED Investors,
RRE Ventures, Greycroft Partners
BlueSnap[Boston, 2001]: Provides Hosted,API and hybrid gateways, business analytics and intelligence, recurring billing
solutions.Works on intelligent routing to process payments faster, owing to its tie ups with multiple banks. It provides PCI level 1
security and compliance to its customers. In 2011, Boston-based private equity firm Great Hill Partners bought the company for
$115 million.
$68M
Great Hill Partners, Parthenon
Capital
2Checkout[Columbus, 2000]: 2Checkout is a PCI level 1 compliant payment gateway. Offers Hosted,API and shopping cart
integrated gateways, with recurring billing and fraud prevention solutions (card data storage and three level encryption). Also provides
mobile gateway solutions. Provides Sandbox for developers.
$60M
Trident Capital, Chicago Growth
Partners,Trinity Capital Investment

” The past few years focused on platforms as products. Many ﬁnancial
products are built as walled gardens with revenue coming from access to
or use of these products. But now high levels of friction and costs
associated with connecting disparate financial systems have
become a major obstacle, not just for those living in the
developing world, but even for IT departments of global banks.
Logically, we will see a shift towards interoperability and we will see more
companies that offer interoperability services as their core product. Once
interoperability becomes commonplace, revenue models built on the
walled garden concept will face new challenges. ”
Joyce Kim, Executive Director & Co-founder of Stellar.org

Blockstream[San Francisco, 2014]: Blockstream works on the sidechains which are mutually interoperable blockchains
and also work with Bitcoin, avoiding liquidity shortages, market fluctuations, fragmentation, security breaches and frauds.
Blockstream develops new crypto currencies, open assets and smart contracts.Their solutions cater to developers, asset issuers
and users providing them with a neutral and cryptographically-assured computing technology for all their financial needs.
$76M
Khosla Ventures,, Innovation Endeavors,
Mosaic Ventures, Ribbit Capital,AME
Cloud Ventures, Horizons Ventures,
AXA Strategic Ventures
Digital Asset Holdings [New York City, 2014]: Digital Asset builds distributed, encrypted STP tools for capital
markets and financial institutions. It develops technology that helps efficiency, transparency, compliance and settlement speed
using cryptographic, distributed ledgers.Their offerings are 1) Open source distributed ledge infrastructure to create ledgers
2) Digital asset platform that interacts with ledgers and enable applications embedded with business logics in the form of
low-level services 3) Business applications that are asset-specific plugins.
$60M
ABN AMRO Bank,Accenture, BNP Paribas,
Citigroup, CMEGroup, Deutsche,JP
Morgan, Santander InnoVentures, PNC
Bank, Goldman Sachs, IBM
Chain[San Francisco, 2014]: Chain partners with leading organizations to build blockchain networks and apps.Their
solutions enable institutions to design, deploy, and operate blockchain networks that can power any type of asset in any market
.
$43.7M
Khosla Ventures,Thrive Capital,
RRE Ventures, Capital One, NASDAQ,
Orange,VISA, SVAngel
CYBER CURRENCY Startups

Moven[New York City, 2011]: Moven is an alternative to traditional bank deposit. Provides mobile banking service where users
have access to real-time updates and spending alerts, spending analysis across all their bank cards and credit cards, the ability to send
money to friends from the app via Facebook, email or their mobile number. Its accounts and associated MasterCard debit card are
backed by CBW Bank, an FDIC member based in Kansas.They have grown to 5,000 registered users and over 100,000 have signed up
for invites. Managed over $300 million in customer spending.
$24M
Anthemis Group, Standard Bank,
Atlas Asset Mgt.
Simple[Portland, 2009]: Consumer banking startup with a web/mobile interface that provides users with access to data around
their ﬁnancial history, as well as tracking of expenditures and savings goals, with automated purchase data collected when its customers
use their Simple Visa debit card. Simple is an intermediary between users and FDIC-insured institutions (Bancorp).Acquired by BBVA in
February 2014, and will continue to operate separately, in parallel with BBVA's existing U.S. banking operations.
$15M
SVAngel,Anthemis Group,
First Round Capital, Thrive Capital,
Lerer Ventures, 500 Startups,
Shasta Ventures
Chime[San Francisco, 2013]: Chime is a prepaid card and mobile banking account.The chime visa card is issued by Bancorp.The
card can be used everywhere VISA card are used and comes with no minimums, overdraft fees or surprises.The account and related
spending can be monitored with an associated mobile app.
$11M
Forerunner Ventures, Crosslink
Capital, Homebrew
ALTERNATIVE CORES: Digital Bank Startups

Europe’s Tremors of Disruption

”We are entering an era where FinTech firms grow up. We are particularly excited by firms
creating their own infrastructure, such as through banking licenses, and through this deeply
integrating into the actual value creation of traditional banks. This goes far beyond
the first wave of user experience driven startups in this field.”
Christian Miele, Vice President at e.ventures & former SVP at Kreditech
e.ventures has invested in numerous fintech
companies, such as Acorns, Azimo, Bankfacil,
Friendsurance, Nibo, Tandem, and Yeahka.

WorldRemit [London, 2010]: WorldRemit is a dedicated online remittances platform. Lets consumers make transfers from any
computer or phone, and receive that money either straight into bank accounts, or mobile wallets or in the form of mobile airtime.The
service offers customers a wide range of pay-out options in receive countries including instant cash pickup, transfers to mobile wallets,
bank deposits and international airtime top-up.
$192M
Accel Partners,Technology
Crossover Ventures,
SVB Financial Group
Ebury[London, 2009]: Ebury is a fintech company designed to power organisations to trade and transact internationally. Using
Ebury’s integrated financial services and technology, organizations can make and receive payments in foreign currencies, enjoy better
exchange rates, use emerging-market currencies, hedge currency risk, benefit from liquidity, and finance transactions in more than 120
currencies. Its white-label products are offered via brokers and accountants. Has offices in London, Madrid, Malaga, New York and
Amsterdam. Clients include more than 3,000 organizations.
$118M 83NorthVC,Vitruvian Partners
TransferWise[London, 2011]: TransferWise is a peer-to-peer and business behalf money transfer service. Charges 0.5% as
money transmission commission and money is converted at the interbank rate. Supports 17 currencies in 39 countries.They have
transferred over $4.5B from its start as of Jan 2015.The company holds bank accounts in all operating countries and works on a
currency swapping model.
$90M
Seedcamp, Index Ventures,
Kima Ventures, SVAngel,Valar,
Andreessen Horowitz
PAYMENTS: Money Transfer Startups

Borro [London, 2008]: Borro is an online asset backed lending platform. It offers three types of loans to the consumer including
Sale advance loans (advance for up to 70% of the estimated sale price), Bridge loans and term loans. For security it accepts a range of
luxury assets including jewellery, luxury items, ﬁne art, precious metals, luxury handbags and wines.They don't review borrower's ﬁn
ancials and no information goes to any credit bureaus. Over 75% of the loans are completed within 24 hours from valuation. Borro
has originated $250M+ since 2011 and was ranked 8th in KPMG’s 50 Best Fintech innovators globally in 2014.
$177M
Sequoia Capital, General Atlantic,
DST Global, QED Investors,Atomico,
Institutional Venture Partners (IVP)
Kreditech Holding [Hamburg, 2012]: Kreditech is a German online lender which offers loans to individuals based on t
heir creditworthiness which is analyzed using their online data instead of using traditional credit rating information.The creditworthi
ness of a user is determined in less than a minute based on up to 8,000 data points and the loan is directly issued. Kreditech current
ly offers its services in Poland, Spain, Russia, the Czech Republic, and Mexico. All national platforms are operated by the international
team, which currently consists of over 75 employees from 18 countries, from its headquarters in Hamburg.
$150M
Point Nine Capital, Blumberg Capital,
Amadeus Capital Partners,J.C.
Flowers, IFC
Auxmoney[Dusseldorf, 2007]: Auxmoney is an online lending platform facilitating P2P loans. It allows private consumers to
borrow from private investors for personal loans between €1k and €20k.
$84M
Foundation Capital, Partech Ventures,
Index Ventures, Union Square
Ventures

Zopa[London, 2005]: Zopa is a P2P money lending service that allows lenders and borrowers to deal directly with one another,
cutting out the banks who act as middlemen. Zopa takes on such responsibilities as distributing money between parties, completing
the legal paperwork, performing borrower identity/credit checks, and employing a collections agency that chases missed payments for
the lender. Zopa also mitigates risk for lenders by enforcing monthly direct debit repayment, making borrowers sign a legal contract,
and allowing lenders to lend small chunks of money to individual borrowers. The company itself makes money by charging a fixed fee
for borrowers and 1% annual fee for lenders. Zopa has so far lent more than $1B.
$58M
Benchmark, Bessemer,
Wellington Partners,
Balderton Capital
Prêt d’Union [Issy-les-Moulineaux, 2009]: PRET d’UNION S.A. is an online lending platform for P2P lending.The company
allows individuals and organizations to act as lenders and individuals as borrowers. It offers five classes of return-based loans having
tenor between 2 to 5 years and returns between 4% and 10%. It is certified as a “credit institution and investment service provider” by
the French Prudential Supervisory Authority.
$52M
Kima Ventures, Schibsted
Growth, Crédit Mutuel Arkéa,
Eurazeo
RateSetter[London, 2010]: RateSetter is a peer-to-peer (P2P) lending exchange, allowing people to lend and borrow money
directly with each other, setting their own interest rates and terms. For borrowers there are no penalties for early repayment of a loan.
Savers can invest as little as £100 and borrowers can get loans of up to £25,000. RateSetter also provides commercial loans that start
at a principal upward of £25,000.
$38M
Woodford Investment,Artemis
Investment

Funding Circle [London, 2010]: Funding Circle is an online marketplace where people can directly lend to small businesses.
People lend small amounts to multiple creditworthy businesses to spread their risk. In turn, those businesses borrow from a multitude
of people through an auction mechanism to get a lower interest rate. Lenders are able to loan specifically to businesses in their
community or businesses that meet certain criteria, such as being environmental friendly. Over 33k investors who have lent to
businesses of January 2016, Funding Circle has facilitated over $1.4 billion in loans to small and medium sized firms.
$273M
Index Ventures, Union Square
Ventures,Accel, Ribbit Capital,
DST Global, Baillie Gifford,
Temasek
Orange Money /dba EZBOB [London, 2011]: ezbob provides financing to businesses for up to £120,000 and a loan
tenure of up to 24 months. Once the application is approved, the money is transferred to borrower's account. ezbob is the trading name
of Orange Money and it acquired Everline, an online business loan provider in UK, in January 2015. Everline and ezbob have collectively
provided over 6,000 business loans and lent over £70M to small businesses since 2012.
$82M
Angel CoFund, Phenomen
Ventures, Oaktree Capital
Management, Leumi Partners
LendInvest[London, 2013]: LendInvest is an investment platform for property mortgage loans. LendInvest provides an online
platform which circumvents the banks - allowing investors to lend directly to borrowers. LendInvest is providing investors with superior
risk adjusted returns.All LendInvest loans are secured by a registered charge against residential or commercial property in the United
Kingdom.
$58M Kunlun,Atomico
SpotCap[Berlin, 2013]: SpotCap is an alternate lending platform that offers credit line to businesses with a flexible repayment
option.The credit line is open and used at the discretion of the approved businesses, businesses can withdraw as often as once a day.
The repayment alternatives include a six month period over which the draw down is amortized. Repayments lead to a replenishment of
the credit line.
$50M
KREOS CAPITAL,Access Industries,
HV Holtzbrinck Ventures,
Rocket Internet

Klarna[Stockholm, 2005]: Klarna is a provider of payment solutions for e-commerce stores. It allows buyers to pay for ordered
goods after receiving them, thus providing them with an after delivery payment solution. It also offers customers with an option on
the payment gateway of the online store to pay by Klarna and choose to pay by instalments, or pay the amount after a certain period
of time.At the same time, Klarna assumes all credit and fraud risk for e-stores so that sellers can rest assured that they will always
receive their money. Klarna’s business model relies on only charging for approved purchases, which means that Klarna always work
towards increasing stores’ sales.
$282M
Oresund Investments, Sequoia,
General Atlantic, DST Global,
QED Investors,Atomico,
Institutional Venture Partners
Adyen[Amsterdam, 2006]: Adyen is a global provider of international and omni-channel payment solutions.Adyen holds full
acquiring licenses for Visa, MasterCard,American Express, Diners, Discover and Union Pay enabling its platform to process payments
from any sales channels including online, mobile, and point-of-sale (Shuttle).The Platform is highly scalable and can be completely
customized to meet any merchant requirement.Adyen processes 251 local payment methods and 187 transaction currencies used on
six continents. Processed $25 billion in payments transactions in 2014, and provides advanced payment solutions to more than
3,500 customers including Mango,TomTom, PhotoBox, SoundCloud and Vodafone.
$266M
General Atlantic, Index Ventures,
Felicis Ventures,Temasek,
Iconiq Capital
Valldata[Melksham, 2014]: Valldata specializes in payment processing for the non-proﬁt sector.Among its payment processing
solutions include level 1 PCI-DSS merchant acquiring solutions under VISA, online solutions including donation and related
campaigns, event registration, membership & merchandising.
$10M Living Bridge

Clear2Pay[Brussels, 2001]: Clear2Pay is a Belgium based company providing payment solutions to ﬁnancial institutions. It
provides a variety of products and services like Bank Payment Hub (an umbrella payment solutions), Open Payment Framework
(common reusable services like choreographed business payment processes) and other payment solutions like international payments,
domestic payments and electronic banking. It also provides certain value-added-services like dispute management, remittances,
maintenance of tax payment formats and bill presentment and payments. In September 2014 Clear2Pay was acquired by FIS, a U.S.
based provider of banking and payment technology solutions, for $492M.
$127M
Aquiline Capital Partners, Intel
Capital, Big Bang Ventures,
Quest for Growth, Iris Capital
ClickandBuy[London, 2000]: ClickandBuy is an online payment service provider with strong presence in Europe. With around
10 million customers dealing in over 120 currencies across 193 countries, it is the second largest Internet payment brand behind
Paypal. In March 2010 ClickandBuy was acquired by Deutsche Telekom AG from Intel Capital for €80M.
$30M 3i Group,T-Venture
Paymill[Munich, 2012]: Paymill is a payment solution which enables online businesses and services to accept payments on their
websites within a very short time. Provides a developer friendly API. Has expanded to 40 countries within Europe. Direct debit was
added in November 2012 as an additional payment method. Mobile SDKs for Android and iOS are available to easily accept in-app
payments. Paymill provides processing of up to 100 currencies and merchants can choose from 23 payout currencies.
$18M
Blumberg Capital, HV Holtzbrinck
Ventures, Sunstone Capital,
Rocket Internet
PAYMENTS: Payment Gateway Startups

iZettle[Stockholm, 2010]: The iZettle app and card readers allow individuals and small businesses to accept card payments on their
iOS or Android smartphone or tablet.The app supports both chip cards and magnetic stripe cards. iZettle card readers can either plug
into the audio jack or connect wirelessly via Bluetooth. Provides services in Sweden, Finland, Denmark, Norway, the UK, Germany, Spain,
Mexico and Brazil.
$173M
Index Ventures, Greylock Partners,
Northzone, Creandum, Intel Capital,
Dawn Capital, Santander
InnoVentures,American Express
Payleven[Berlin, 2012]: Payleven offers a mobile app and bluetooth-enabled wireless card reader that connects with iOS or
Android smartphones or tablets to accept credit and debit card payments. Merchants can take payments with card swipe or manually
entering details.The device connects to the phone's internet connection to complete the transaction over Payleven's servers.
Operates in 10 European countries at present.
$51M
New Enterprise Associates, HV
Holtzbrinck Ventures, Seventure
Partners, Rocket Internet
SumUp[London, 2012]: SumUp offers a mPoS suite to merchants which includes an app and a card reader for payment
acceptance.The merchant enters the order details in the app which are transferred to the the card reader.The consumer enters the PIN
for the payment cards and completes the transaction. SumUp has expanded into 14 countries, including the UK, Germany, Russia and
Brazil.
$44M
Tengelmann Ventures, Shortcut
Ventures, BBVAVentures,
Groupon,American Express
Miura Systems [ , 2008]: Miura is a UK based provider of mPoS Chip & Pin hardware solutions. Its products integrate
with mobile PoS softwares via app or with conventional counter-top PoS hardware systems. In June 2015, it collaborated with Apriva, a
provider of wireless transaction products, to provide EMV and NFC payment capabilities it its mPoS card readers.
$16M Draper Esprit
PAYMENTS: Mobile POS Startups

Atom Bank [London, 2014]: Atom is a digital only bank that is expected to start in the United Kingdom.Atom is aiming to provide a full
fledged service range for consumer and business banking facilities.The bank shall have no physical branch and is available only through
a digital presence. T hey got a banking licence in June 2015 and Spanish bank BBVA has acquired a 29.5% stake in November 2015 for
45M Pounds.
$163M
Anthemis Group, Polar Capital,
Woodford Investment, British
Engines,Toscafund, BBVA ,
Marathon Asset Management
Tandem [London, 2013]: Tandem is a digital bank awaiting to get a regulatory license and begin its operations by the end of 2015 in UK.
It has been started by Azimo founder and investor Ricky Knox alongwith Matt Cooper, Ex-director, Capitalone to cater to the large UK
market of mobile-first banks.Tandem, which claims to offer consumer products including current accounts and mortgages, is understood
to have raised nearly £100m in capital, backed by a group of 10 institutional investors.
$154M
Route 66 Ventures, e.ventures,
Omidyar
Starling Bank [London, 2014]: Starling Bank is aiming to be a digital bank which will offer current accounts to users along with an app
and card services for payments. Starling is the trading name of Possible FS Limited, the company is currently applying to Prudential
Regulation Authority (PRA) and the Financial Conduct Authority (FCA) for a banking licence.
$70M Harald McPike
Mondo Bank [London, 2015]: Mondo is the trading name of Focus FS Ltd,A UK registered Company applying to the Prudential
Regulation Authority (PRA) and Financial Conduct Authority (FCA) for authorisation to become a bank. Its described as the full-stack
mobile-first bank aimed at providing a better user experience in comparison to traditional banks.
$11M Passion Capital
Cryptaura [London, 2015]: Cryptaura is an early-stage, pre-licence new generation bank that supports blockchain technology. It has
applied to the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) for a banking license. It is in stealth mode
.
N/A unknown
PAYMENTS: Digital Bank Startups

Property Partner [London, 2014]: Property Partner is an equity crowdfunding platform for investments in real estate
sector.The platform lists properties that investors can pledge money towards. Upon the successful funding of a property, Property
Parnter establishes a Special Purpose Vehicle (SPV).The SPV purchases a stake in the property, the investors in turn receive shares of
the SPV.The retail investors hold a share in a property and earn annual income until an eventual exit which might lead to capital
gains. As of March 2016 £24M has been invested in 166 properties through its platform.
$32M
Octopus, Seedcamp, Index
Ventures, Dawn, Silicon Valley
Bank, Octopus Ventures
Crowdcube[Exeter, 2010]: Crowdcube is a equity and debt crowdfunding platform that enables entrepreneurs and
companies looking to raise crowdfunding create a pitch explaining their business. Crowdfunders can then invest in return for
ownership or ﬁxed interest rates on bonds.The campaign creators have 60 days to reach their target funding goal or all funds are
returned back to the investors.The platform has more than 200,000 registered users. Crowdcube says its platform has been used to
raise more than £141 million for more than 367 start-up, early stage and growth businesses.
$20M
Balderton Capital, Balderton,
Draper Esprit
BUSINESS FINANCE: Crowd Funding Startups

”What I find most exciting about financial services is the size of the
potential opportunity and how we are only in the very early stages of
disruption.Within each segment of the market, whether it's marketplace
lending, payments, wealth management, or currency transfer, there is
room for multiple $B companies. What's particularly exciting about
being based in London is the heritage of financial services in
the city, and the strong pool of talent from both finance and
technology - we really believe in teams that combine both sides of
'fintech' and think those teams will build many global leaders out of
London in years to come.”
Hiro Tamura, Partner at Atomico
Atomico has invested in fintech
companies such as Klarna and
LendInvest.

China’s Tremors of Disruption

•  Payments comprises of mPoS, PoS, wallets, payment gateways, and processors. These startups
have raised $566.5M from 2014 - 2016 (YTD) in 36 rounds of funding
•  Commercial lending platforms comprises of B2C Marketplace, P2P platforms, working capital
and term loans platform. These startups raised $857M from 2014 - 2016 (YTD) in 66 rounds
of funding
•  Consumer lending platforms comprises of B2C Marketplace, P2P platforms, and purchase
finance. These startups have raised $4.1B from 2014 - 2016 (YTD) in 86 round of funding
•  Insurance tech comprises of online insurers and distribution platforms. They have raised
$1.14B from 2014 - 2016 (YTD) in 26 rounds of funding
Breakdown of Venture Capital Investments

Lufax[Shanghai, 2011]: Lufax was launched in 2012 and has arranged more than 200,000 peer-to-peer loans worth a total of $2.5 billion
. It is currently one of the largest peer-to-peer lenders in China, focusing on consumer debt of around $10,000. Lufax collects fees of about 4%
from borrowers and the loans typically yield about 6-8%. In contrast to most peer-to-peer lenders Lufax also operates about 100 stores across
80 cities, where borrowers can arrange loans. It also doesn’t make automated credit decisions but interviews ﬁrst time borrowers over the
phone.As of Dec 2015, it has registered user base of 18 million with 3.6 million active users. Its services cover over 300 Chinese cities.
$1.7B
CDH Investments, Bank of China,
China Minsheng Banking,
Guotai Junan Securities,
BlackPine Private Equity
Jiedaibao[Beijing, 2015]: Jiedaibao has started lending and borrowing between acquaintances which is unidirectional and in
anonymous mode i.e real-name borrowers and lenders remain anonymous. It enables direct ﬁnancial transactions and the use of natural
relations between acquaintances along with a reputation mechanics to reduce and eliminate information asymmetry.
$693M Commercial banks
Qufenqi[Beijing, 2014]: Qufenqi operates an online storefront lets buyers pay in installments. It focuses on smartphones, laptops, and
other consumer electronics and also sells fashion goods and sports gear. Customers can choose items from e-commerce sites like Tmall and
JD, and then pay for them via Qufenqi by selecting a down payment and the number of months in which they will pay off the remainder. The
business model is tailored for students and young white collar workers. Qufenqi charges a premium in exchange for the payment plan.
$425M
BlueRun Ventures,
Alibaba Group
Dianrong[Shanghai, 2012]: Dianrong.com (previously known as SinoLending) is a Shanghai-based P2P online lending platform.
Dianrong provides credit ratings and risk controls on every loan. In addition, the company also launched cooperation with state-backed China
Orient Asset Management Corp.
$219M
Northern Light VC,
Sun Hung Kai Properties Limited,
Tiger Global, Standard Chartered

WeLab[Hong Kong, 2013]: WeLab operates WeLend, Hong Kong’s online lending platform as well as Wolaidai, a mobile
lending app for mainland China.WeLab's lending platforms are powered by WeDefend, the company's proprietary risk management
technology, claims to use machine learning, big data technologies, and unstructured data to deliver a risk management solution and
customer experience. It has pivoted from P2P lending model to B2C model where in it has partnered with financial institutions to
provide banking solutions providing credit to people who are unable to obtain financing through traditional channels.
$180M
Khazanah Nasional Berhad, ING,
Sequoia,TOM Group,
Iconiq Capital
Fenqile[Shenzen, 2013]: Fenqile allows users, primarily college students, to buy electronics they otherwise couldn’t afford via
short- and long-term payment plans.The site has partnered with some of China’s largest ecommerce players, and allows users to pick
up products like iPads and smartphones without paying the full price up front. Users can choose the length of the plan they want –
options range from 3 months up to 18 months – and the interest rate varies accordingly.
$100M
LISA COATS, Bertelsmann Asia,
Matrix Partners,Jingdong
Juzilicai[Shenzhen, 2014]: Juzilicai is an online based consumer finance platform aimed as an internet and investment
banking platform for its investors.Juzilicai pools money from different investors and gives them a fixed interest rate return.The
pooled money is then offered as loans to the borrowers.The average amount of each loan is only 3500 yuan and majorly used to buy
consumer goods.
$100M
Matrix Partners,Xianfeng
Huaxing, DST Global,
Bertelsmann Asia
Tuandai[Guangdong, 2010]: Tuandai is a P2P lending platform that provides an alternative source of credit to consumers. The
platform offers several loan products such as mortgages, auto loans, and more. The entire process is online, right from application to
disbursement of funds.Tuandai uses services of third party guarantee agencies and third party escrow agencies.
$80M Undisclosed

eLoan[Wenzhou, 2007]: eLoan is an online lending platform where members can borrow and lend money among themselves at better
interest rates than banks. It is specifically focused on agriculture, farming and rural areas. Majority of business comes from farmers personal
loans which are used for agricultural production.
$147M Legend Capital
Renrendai[Beijing, 2010]: Beijing-based Renrendai is the leading P2P platform in terms of the total number of outstanding loans.
Since its inception, the company has built a nationwide service network covering over 2000 regions with a strong customer base. Renrendai
targets white-collar employees and small business owners as customers, charging borrowers a management fee of 0.3 percent of the borrowed
money, and a service fee of up to 5 percent for high-risk borrowers.The returns on Renrendai.com loans are between 10 and 18%, which is
higher than the 3.25% offered by one year turn deposits in banks.The company also controls default risks by measuring borrowers’ income,
occupation, assets and family connections.
$133M
Dashu Finance [Shenzhen, 2014]: Dashu Finance provides unsecured loans and financing services for small and micro enterprises. It
currently operates in six Chinese cities, and provides loans to small business owners, university graduates, government workers and others. It
claims to have issued over 400,000 personal and small enterprise loans with over RMB80 billion in total loan value cumulatively.
$92M Sequoia, PAG
Licaifan[Beijing, 2014]: Licaifain.com is a people to business financial investment platform, operated by Beijing Wangrong Tianxia
Financial Information Services Co., Ltd. It claims to provide a safe and efficient one-stop asset allocation investment platform for individuals and
families; and low-cost direct financing channel for SMEs.
$86M

PPDai[Shanghai, 2007]: PPDai is an online platform for P2P small unsecured loans in China.The platform created a department
dedicated to provide lending services to retailers of Taobao, a subsidiary company of Alibaba and a shopping marketplace targeted for
Chinese customers. Platform’s default rate is less than 1.5% and bad debt rate is 1.52%. Ppdai claims to have 2 million registered users and
disbursed over $200M in loans.
$70M
Sequoia, Lightspeed China,
Noah Private Wealth, Legend
Capital, SIG China
Yindou[Beijing, 2013]: Yindou is an online P2P platform that allows investors to lend money to businesses and individuals. The loans
available on the platform include property loans, vehicle loans, SMB loans, corporate loans and others.
$66M China High Tech Group
Yooli[Beijing, 2013]: Yooli is a P2P lending company. Launched in 2013,Yooli cooperates with 23 offline micro-credit companies,
offering investors access to loans that are originated from many of the smaller P2P platforms. In order to build trust and confidence,Yooli
partners with a third party to assess the credit quality of each individual loan.The company claimed more than 760K registered users with a t
urnover of more than 1.8 billion yuan (US$290 million).
$60M
SoftBank, Morningside Group,
Hillhouse Capital
Wanglibao[Beijing, 2014]: Wanglibao.com is an online financial platform that focuses on providing loans to small- and
medium-sized enterprises (SMEs), unlike the traditional and dominant peer-to-peer (P2P) lending business.
$50M IDG Capital Partners
Firstp2p[Beijing, 2013]: Firstp2p was launched in July 2013 by UCF Group. It is an internet P2P lending platform, and has helped to
match more than RMB20billion of borrowing and investment needs since its inception.The platform connects individual lenders with small-
scale borrowers, essentially meeting the needs of small and medium-sized enterprises that don't qualify for bank financing.
$41M
CITIC Capital Holdings,
China Equity

Wacai[Hangzhou, 2008]: Wacai started as a personal finance book keeping service and management app and then ventured into a
lending marketplace that allows investors to invest in P2P loans. Can link online banking, securities,Alipay account as well as different types
of assets and keep a track of their accounts. Borrowers are redirected to Quicken Loans for an automated loan application procedure.
Borrowers can apply for a loan for less that 100,000 Renminbi for a term not exceeding 24 months.
$149M
QiMing Venture Partners, New
Horizon Capital, CBC Capital, IDG
Ventures, CDH Investments
Jimubox[Beijing, 2013 ]: JimuStock, an online stock trading platform that provides seamless access to the US equities market.
Jimubox has developed a unique account opening experience that leverages the mobile device and technology driven secondary verification
techniques to meet strict KYC and AML procedures.Jimubox, is a leading Chinese P2P lending fintech marketplace, is a multi-asset class,
multi-product type financial marketplace that provides intelligent financial advice to the Chinese lenders and investors.
$131M
Ventech China,Xiaomi, Magic
Stone Alternative,Vertex
Ventures, Mandra Capital
51Zhangdan[Hangzhou, 2012]: 51Zhangdan helps users manage their credit card bills by using data mining technology.Analyses
info and gives insights about their spending. The company currently has an accumulated registered users over 36 million and it has manage
over 35 million credit cards.
$65M
Meridian Capital China, SIG,
GGV Capital
Jinfuzi[Shenzhen, 2012]: Jinfuzi owns and operates as an online wealth management platform.Jinfuzi, which means ‘golden ax’ in
Chinese.The website lets investors borrow up to 10 times their principal with only 2,000 yuan ($322) down in order to buy stocks and
futures. Shenzhen-based Jinfuzi sells wealth management products including mutual funds, trust and asset management products, via its
website and mobile apps geared toward retail investors. It claims the value of wealth management products sold on its platforms has
reached RMB10 billion (US$1.61 billion) in January 2015
$60M Sequoia Capital, Renren
CONSUMER FINANCE: Wealth & Personal Finance Startups

Lakala[Beijing, 2005]: Lakala (Beijing) is e-billing technology and service company. It offers services for credit card repayment and utility
payment (water, electricity, gas bills) transactions. Customers can conduct various ﬁnancial functions such as payment, repayment, recharging
and transfer at home.Well-known retailers such as Wal-Mart, CNPC, Sinopec, 7-Eleven,Wu Mart, Quik,and Gome, all have Lakala payment
devices. Lakala has released a number of patented personal payment terminal devices, including a mini household card payment device, Super
Shield PC card payment device, and mobile card payment device. It has over 75,000 self-service terminal devices in over 300 cities. It also has
established partnerships with UnionPay and 50 banks, including China Construction Bank, Bank of China, and Agricultural Bank of China.
$274M
Legend Capital, China
Continent Property & Casualty
Insurance, China Taiping
Insurance, Fortune Ventures
9now[Shanghai, 2013]: 9now is an intelligent restaurant queuing ordering system which provides a PoS system and each restaurant gets its
own back-end management system. It claims to covers Shanghai, Beijing and other cities.
$99M
Tiantu Capital,
Matrix Partners, Baidu
99Bill[Shanghai, 2005]: 99Bill Corporation provides e-mail and mobile phone number based payment solutions. The company offers bank
and prepaid card processing, account reﬁlling, mass payment, data security, and online marketing services.Additionally, it provides automatic rel
oad payment services for online gaming operations.The company partners with Bank of China, China UnionPay, CITIC Industrial Bank, NetEase, K
ingsoft, and NetDragon. 99Bill Corporation was founded in 2005 and is based in Shanghai.
$81M
DCM, Peninsula Capital,
Lightspeed
Shanghai Unionpay Merchant Services [Shanghai, 2003]: Shanghai Unionpay Merchant Services Co., Ltd., a
subsidiary company of China Unionpay empowered by Shanghai Banking Association, is committed to providing professional POS terminal
services. So far, the company has provided POS terminal services for 17 commercial banks in Shanghai district. The company manages and
maintains nearly 50,000 POS terminals, providing POS terminal contract signing, installation, training, maintenance and other value-added
services for more than 20,000 promissory shops.
$23M
CITIC Capital Holdings,
SAIF Partners

WeBank[Shenzhen, 2014]: WeBank is a joint venture led by Chinese gaming and social network group Tencent Holdings.The
bank does not have any physical branches and is a complete online offering.The bank derives its name from WeChat, another offering
by the Tencent Group. It is one of six banks that have been granted a private banking license in 2014, prior to which there was only
one private bank operating within China.
$450M Warburg Pincus,Temasek
Rong360[Beijing, 2011]: Rong 360 is an online aggregator and comparison provider of various financial products such as
bank loans, savings funds, mortgages, P2P loans and credit cards. It builds an all-around direct selling platform of financing and loan
products that meets the demands of users and banks. It developed a consumer credit risk management system in 2014. It has
presence across 300 cities and provides real-time updates on more than 170,000 financial products. Claims to have 12.3 million users
with its users having submitted credit applications for more than RMB2 trillion
$255M
Lightspeed Ventures, Sequoia,
Qunar, KPCB,YF Capital,
Sailing Capital
Zhong An Insurance [Shanghai, 2013]: Zhong An Online P & C Insurance offers online property and casualty insurance
services. It is China’s first online-only insurer, whose initial investors included Alibaba’s finance arm,Tencent and Ping An Insurance.
The largest shareholder is Alibaba affiliate Zhejiang Ant Small & Micro Financial Services Group. Zhong An has developed more than
100 products and sold 1.6 billion insurance policies for more than 250 million customers since commencement.
$931M
Morgan Stanley, Centennial Infant
& Child Centre Foundation,
CDH Investments, SAIF Partners
ALTERNATIVE CORES: Digital Banking & Insurance Startups

”As the world steams towards this new era, the ubiquitous road bumps must be heeded.
Regulators are challenged to keep pace and timing can disappoint as new greenshoot
activities are eventually regulated or even regulated against. Incumbent banking institutions
may instinctively resist and defend themselves from the competitive forces that this ﬁntech
revolution represents… For startups, I believe as security becomes a concern and cyber
threats grow that customer education will become a core responsibility.”
Previously, Jay McCarthy was Executive Director in the
Equity Division at Morgan Stanley and worked in the
Tokyo, HK, Beijing and Singapore offices for over 16
years. Within this time, Jay served 2 years as Morgan
Stanley’s “secondee” to China International Capital
Corporation, their JV Chinese Investment Bank.
Jay McCarthy,
Co-founder &
Partner at
SparkLabs Global
Ventures

Asia’s Tremors of Disruption
Asia Ex-China
Asia here is deﬁned as all of
Asia minus China since China
has the most active ﬁntech
market in the region by far.
We will cover the other markets
in more detail in the future.

The Rise of APAC
“Fintech investment in Asia-Pacific more than quadrupled in 2015 to $4.3 billion. It
is now the second biggest region for fintech investment after North America,
accounting for 19% of global financing activity and up from just 6% in 2010.
China has the lion’s share of investment, accounting for 45% in 2015, but India
makes up 38% and is growing fast. Mumbai, Bangalore,Tokyo and Beijing are the
major fintech hubs in the region by the number of deals. Looking at deal volumes,
78% went to fintech companies targeting the banking industry, 9% to wealth
management and asset management companies and 1% to the insurance sector.
Payments is the most popular segment for fintech deals in Asia-Pacific, accounting
for 38% of the total.”
Accenture’s “Fintech and the evolving landscape” Report 2016

"Creating this next generation credit system represents part of Fintech’s major shift toward
offering innovative solutions in the ﬁnance and banking sectors. New technologies and modern
alternatives enable startup companies like SelfScore to accomplish things for consumers that
traditional banks simply cannot provide… Banks are dinosaurs in this situation. They
will eventually become more of a utility. If you look at the utilities like electricity or
Internet, they have this money pipeline, if you will, around the world.They will provide the
infrastructure, but the front end will be dominated by new companies.We are part of that
new phenomenon.”
SelfScore’s investors include Aspect Ventures, Accel
Partners, Pelion Venture Partners, Fenway Summer
Venture Capital, and SparkLabs Global Ventures.
Kalpesh Kapadia,
Co-founder &
CEO of SelfScore

FinTech Industry Report 2016

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FinTech Industry Report 2016