FinTech Companies Received $7 B in Jan 2016 in FinancingJanuary 30, 2016    By : Sofia
December 2015 was extraordinarily fruitful for FinTech as it fueled the industry with an extra billion dollars. As the first month of 2016 comes to an end, let’s look at how 2016 has treated FinTech around the world so far.
According to Financial Technology Partners, an investment bank focused on FinTech, the first month of 2016 counted 112 deals in FinTech financing with a mind-blowing $7 billion in total. Think of the number in comparison to the last month of 2015 – $7 billion around the world were invested in FinTech startups not counting mergers and acquisitions.
Let’s take a closer look at the structure of this $7 billion.
Investments by sector
Data source: FT Partners
Banking/Lending (31%) and Payments/Loyalty/Ecommerce (27%) are the most active sectors in terms of the number of companies that raised funds. We have noticed before that those two FinTech sectors are the most attractive ones for investors, as the highest number of unicorns are focusing on lending and payments.
FinTech companies operating in the Securities/Capital Markets/Wealth Management segment took the third place with 15% of companies represented in the pool. Interestingly, InsuranceTech also has a piece of the pie (although a small one) and is becoming a hot topic and a hot sector for bright entrepreneurs to develop disruptive solutions. Investors have also been paying attention to the sector, as the insurance industry is the biggest industry in the US with net premiums of $1.1 trillion in 2014. There is already a range of InsuranceTech startups paving their way into a trillion-dollar industry. Further in 2016, we may see more InsuranceTech startups expanding the presence and gathering more attention and funding given that InsuranceTech demonstrated its amazing potential with recent exciting (or scary?) news on AI bot replacing a human. However, at this point, those companies are not considered to be raising serious funds.
Segmentation by funds raised
Even though InsuranceTech represented 5% of companies, unfortunately, investors are still cautious with the funds trusted to FinTech operating in the space. An insignificant 1% of all funds raised were raised by InsuranceTech companies.
Data source: FT Partners
If Banking/Lending FinTech companies were the most represented by number, Payments/Loyalty/Ecommerce focused companies significantly outpaced them by the volume of funds raised. More than half of the $7 billion pool of dollars that poured into FinTech in January 2016 were invested in FinTech companies working with Payments/Loyalty/Ecommerce. Banking/Lending focused companies accounted for 41% of the funds.
Now let’s move to the actual numbers. Almost $6.5 billion were raised by FinTech companies operating in Banking/Lending and Payments/Loyalty/Ecommerce segments with the rest of the companies attraction “just” half a billion.
Data source: FT Partners
One would think there is a range of companies responsible for those billions and one would be wrong. A single company made the whole month an outstanding one for FinTech scoring more than $3 billion in funding.
Data source: FT Partners
Meituan-Dianping, China’s largest group deals site, was the one pumping the January funding with 43% of $7 billion raised by the Asian giant.
Even though Meituan-Dianping attracted the most funds, it doesn’t signify it is the hottest company. Among the hottest ones were those attracted the highest number of investors willing to part with their dollars.
Pindrop Security (Andreessen Horowitz, Citi Ventures, Felicis Ventures, Google Ventures, IVP),
Travelersbox (Arbor Ventures, Global Blue, iAngels, IPE Ventures, Pereg Ventures, Pitango Venture Capital),
Commerce Sync (Augury Capital, Camp One Ventures, First Data Ventures, Intel Capital, Meritage Funds, Service Provider Capital),
Digital Asset (ABN Amro, Accenture. ASX Limited, BNP Paribas, Broadridge, Citigroup, CME Group, Deutsche Boerse, DTCC, ICAP, JP Morgan Chase & Co, PNC Financial Services Group, Inc., Santander Innoventures),
LendUp (Bronze Investments, Data Collective, Eagle Cliff Partners, Google Ventures, Kapor Capital, QED Investors, Susa Ventures, SV Angel, Victory Park Capital),
Opencell Software (Awys, Bourgogne Angels, Bpifrance, Cap Innov’Est, Kima Ventures),
BlueVine (83North, Correlation Ventures, Lightspeed Venture Partners, Menlo Ventures, Rakuten Fintech Fund, Silicon Valley Bank),
Meituan-Dianping (Baillie Gifford, Capital Today, CDB Kai Yuan Capital Management, CPP Investment, DST Global, Temasek, TrustBridge Partners),
Solovis (Edison Partners, MissionOG, Northwestern University, OCA Ventures, Timberline Venture Partners),
Patreon (Allen & Company, Inc., Atlas Venture, Charles River Ventures, Freestyle Capital, Index Ventures, Thrive Capital),
Brightpearl (Columbia Lake Partners, Eden Ventures, MMC Ventures, Notion Capital, Silicon Valley Bank),
Estimote (BoxGroup, Commerce Ventures, Digital Garage, Homebrew, Javelin Venture Partners),
PolicyGenius (AXA Strategic Ventures, Karlin Ventures, MassMutual Ventures, Revolution Ventures, Susa Ventures, Transamerica Ventures),
Anaplan (Baillie Gifford, Brookside Capital, Coatue Management, DFJ Growth, Founders Circle Capital, Granite Ventures, Harmony Partners, Meritech Capital Partners, Premji Invest, Salesforce.com, Sands Capital, Shasta Ventures),
Gem (Blockchain Capital, Digital Currency Group, KEC Ventures, Pelion Venture Partners, RRE Ventures),
Xfers (500 Startups, BWB Ventures, Convergence Ventures, GMO Venture Partners, Golden Gate Ventures, Lazena Investment, Partech Ventures),
Aver Inc. (Cardinal Health, Inc., GE Ventures, Hearst Health Ventures, Heritage Group, NCT Ventures, StartUp Health).
January wouldn’t be such a happy time for FinTech around the world if it weren’t for active investors. 112 financing deals were powered by a wide range of investors. However, there are some particularly active ones involved in multiple deals.
249 investors backed 112 deals, among which the most active ones were 500 Startups (2 deals), Atlas Venture (2 deals), AXA Strategic Ventures (2 deals), Baillie Gifford (2 deals), Citi (2 deals), Formation 8 (2 deals), Founders Fund (2 deals), GE (2 deals), Google Ventures (3 deals), Lightspeed Venture Partners (3 deals), Menlo Ventures (2 deals), Partech Ventures (2 deals), Pitango Venture Capital, Sequoia Capital (3 deals), Silicon Valley Bank (2 deals) and Susa Ventures (2 deals).
Among other notable investors were Lenovo, Y Combinator, TA Associates, SV Angel, Santander Innoventures, RRE Ventures, Salesforce, QED Investors, OMERS Ventures, Lloyds Banking Group, JPMorgan Chase & Co, Index Ventures, First Data Ventures, Commerzbank, BNP Paribas, Blockchain Capital, Bessemer Venture Partners, Arbor Ventures, Andreessen Horowitz, Accion Venture Lab and others.
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