We cover many emerging markets in the startup ecosystem, Financial Technology being one of them. At this time, we are tracking 1,170 FinTech companies across 18 categories, with a combined funding amount of $20.0B. To see the full list of 1,170 FinTech startup, contact us using the form on www.venturescanner.com.
The six FinTech visuals below help make sense of this dynamic market:
In order to organize Financial Technology we broke it down into 18 distinct categories listed below. The logos in the above image do not show all 1,170 logos.
Lending (Consumer): New ways for consumers to obtain personal loans. Includes peer-to-peer lending for education loans, housing loans, payday lending, and micro-financing. Also, includes companies that provide big data analytics and consumer credit scoring services.
Lending (Consumer): New ways for companies to raise debt financing. Includes small business loan underwriting, provision of working capital, peer-to-peer lending platforms, asset-based lines of credit (i.e. borrow against unpaid invoices), and micro-financing. Also, includes companies that provide big data risk analytics and business credit information.
Payments (Acquirer — Online/ Electronic): Payment companies centered around acquirers; provides online payment solutions for e-commerce merchants; includes online payment gateways, ACH, direct deposits, payments back-end for mobile apps.
Payments (Acquirer — Point-of-Sales): Payment companies centered around acquirers; provides physical payment solutions for brick-and-mortar businesses and organizations; includes mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).
Payments (Issuer/ Consumer): Payment companies centered around issuers and consumers; includes mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.
Small Business/ Non-Profit Organization Tools: Tools that help small & medium businesses manage their finances — including tax, payroll, invoicing, and accounting tools. Also includes tools for non-profit organizations.
Personal Finance: New ways for consumers to manage their personal finances — including tools to track expenses, clear debt, and save money. Also includes tools that address wrongful credit card charges, tools that optimize for credit card rewards, and insurance comparison tools.
Retail Investment: New ways for the consumers to invest — including theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.
Remittances: Companies that allow consumers to send money abroad easily and cheaply. Money can be sent in the form of cash or gift cards.
Equity Financing: News ways for private companies to raise capital in exchange for equity and for investors to participate in private securities markets — including crowdsourcing platforms and secondary markets.
Institutional Investment: New ways for wealth managers, hedge fund managers, and professional traders to manage their portfolios and optimize returns — including tools for stock sentiment analysis, alternative investment platforms, and algorithmic trading tools.
Consumer Banking: New ways for consumers to interface with banking services — including Internet-banking-only services and virtual credit cards.
Banking Infrastructure: Solutions that improve the operations of financial institutions — including API integration with banks, white-label mobile solutions, and big-data solutions.
Financial Research and Data: Information services that enable investors to make better investment decisions — including news, research, and data sources.
Security, Authentication, and Fraud: Includes companies that create products in the area of security, authentication (e.g. identify verification), fraud detection/prevention (e.g. payments fraud, loan fraud).
Crowdfunding (Non-Investment): Non-equity, non-lending/debt crowdfunding platforms for products, social causes, and creative projects. Also includes civic crowdfunding platforms and platforms that give backers a cut of royalty payments from product sales.
The bar graph above summarizes the number of companies in each FinTech category to show which are dominating the current market. Currently, lending and payments lead the way.
The bar graph above summarizes the average company funding per FinTech category. The average funding of companies in the Small Business Tools category is currently highest. Because Small Business Tools is a relatively small category, this high average may be explained, in part, by Zenefits’ $583 million in funding.
The graph above compares total venture funding in FinTech to the number of companies in each category. As you can see, lending and payments lead the way.
Our updated heat map indicates where FinTech startups exist across 54 countries. Currently, the United States is leading the way with 680 companies. The United Kingdom is in second with 148 companies. The cities leading the pack are San Francisco with 144 companies, and London with 121 companies.
The bar graph above summarizes FinTech by median age of category. Of all FinTech categories, Banking Infrastructure currently has the highest median at 8 years while Crowdfunding has the lowest median at 3 years.
As FinTech continues to grow, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.
Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to [email protected].
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