Financial Technology Sector Overview - Q1 2018

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The financial technology sector has seen a lot of momentum in funding and exits in recent years. As we previously noted, fintech funding has shifted to later stages and its exit events have skyrocketed. 

We will now take a closer look at the different components of financial technology and how they make up this startup ecosystem. We have classified the companies into 16 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.

Consumer Lending Is the Largest Financial Technology Category

Let’s start off by looking at the Sector Map for the financial technology sector. As of March 2018, we have classified 2407 financial technology startups into 16 categories that have raised $90 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each...

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Fintech Sector Matures As Funding Shifts to Later Stages

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As previously seen, funding into financial technology has increased significantly in recent years. Now we are going one level deeper on our fintech report and research platform to examine its funding by round. From our analysis we can conclude that the fintech sector is continuing to mature over time.

This conclusion comes from two takeaways:

  • Funding amounts are shifting from early-stage to later-stage events
  • Funding counts are dropping in the Seed round and growing elsewhere

We’ll explain these takeaways with some graphics that show fintech funding activity by round.

To help set the stage, the graphic below illustrates fintech funding amounts over time. As you can see, the sector’s overall funding showed robust growth over the past few years.

Fintech Funding by Quarter

Fintech Funding Amounts Shifting to Later-Stage Events

Let’s examine the fintech funding amounts by round as a percentage of the total, which show changes independent of the total size. 

Fintech Funding Amount Percentages

As shown in the graph, the...

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Financial Technology Startup Highlights  – Q1 2018

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Here is our Q1 2018 summary report on the Financial Technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

Financial Technology Slideshare title

Financial Technology Slideshare Intro

Financial Technology Sector Summary

Financial Technology Splash Slide

Financial Technology Sector Map

Financial Technology Annual Funding Over Time

Financial Technology Quarterly Funding Over Time

Financial Technology Exit Events Over Time

Financial Technology Latest Activity

Financial Technology Funding Round Counts

Financial Technology Quarterly Category Funding

Financial Technology Recent Funding Events

Financial Technology Recent Acquisition Events

Financial Technology Payments Backend

Financial Technology Venture Investing

Financial Technology Category Funding Quartiles

Payments Backend Total Annual Funding

Payments Backend Companies with Largest Funding Amounts

About Venture Scanner

Venture Scanner Process

Financial Technology End Slide

To learn more about our complete Financial Technology report and research platform, visit us at www.venturescanner.com or contact [email protected].

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Payments Backend Leads Fintech Exit Activity

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Last quarter we reviewed fintech exit trends and found robust growth. This quarter we went one level deeper on our fintech research platform and conclude that the Payments Backend category leads fintech exit activity. Companies in this category include technologies impacting payment issuers and acquirers, as well as the infrastructure enabling payments.

This conclusion was derived from three takeaways:

  •      Payments Backend leads fintech in the number of exits
  •      Payments Backend leads fintech in the acquisition amount
  •      Payments Backend also leads fintech in the exit ratio

We’ll illustrate these takeaways with some graphics that show fintech exit activity by category.

To help set the stage, the graphic below shows fintech exit activity over time. As you can see, the sector is experiencing strong growth in exits.

FinTech Exits by Quarter Stacked

Payments Backend Leads Fintech in the Number of Exits

We’ll start off by examining the exit events in each...

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Financial Technology Sector Overview - Q4 2017

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As we’ve examined in our previous analyses, the overall funding trends in Financial Technology (fintech) are stable and its exit activity is seeing robust growth, indicating that the sector is maturing as a whole. Yet what are the different components of fintech and how do they make up this startup ecosystem? On our fintech research platform, we have classified the companies in the sector into functional categories. This blog post aims to examine these categories and how they compare with one another through a series of graphics.

Payments-Related Companies Form the Largest Fintech Category

Let’s start off by looking at the Logo Map for the fintech sector. As of January 2018, we have classified 2,285 fintech startups into 16 categories which collectively raised $80 billion in funding. The Logo Map highlights the number of companies in each category and a random sampling of these companies. Please note that, for the sake of brevity, certain related categories have been...

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Fintech Exit Activity Sees Robust Growth

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The Financial Technology (fintech) sector has seen a lot of exit activity over the past few years. How does the number of exit events trend over time? Based on our fintech research platform, we have analyzed the data through 2017 and can conclude that fintech exit activity is seeing continued robust growth. 

This observation was derived from two takeaways:

  •      Fintech exit events are demonstrating strong annual growth
  •      Fintech exit events are increasing at the quarterly level as well

We’ll illustrate these takeaways with two graphics that show the solid growth of fintech exit activity over time.

Fintech Exit Events Showing Strong Annual Growth

We’ll start off by examining the fintech exit events from 2011 to 2017. Exit events include both acquisitions and Initial Public Offerings (IPOs). The below graph shows the number of annual fintech exit events stacked by quarters.

Fintech exits by quarter stacked

This graph illustrates that fintech exit activity is...

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Fintech Sector Maturing in 2017

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Financial Technology (fintech) has seen a lot of venture capital funding over the past few years. How have its funding trends evolved over time? Through the insights derived from our fintech research platform, we conclude that the fintech sector is maturing.

We have come to this conclusion from the following four takeaways:

  •      Overall fintech funding trends are stable
  •      Fintech investor interest is constant
  •      Fintech funding has shifted to mid- and late-stage events
  •      The average fintech funding size is growing

We will illustrate these takeaways with a series of graphics to show that the sector is maturing.

Fintech Funding Relatively Stable in 2017

We will start off by examining the fintech funding trends over the years. Let's look at the annual fintech funding amount stacked by quarter.

Fintech Funding Amount by Quarter

As we can see from the graphic, fintech funding in the first three quarters of 2017 is slightly down relative to 2016....

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Financial Technology Activity by Selected Investors - Q3 2017

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The following graph summarizes investor activity in the Financial Technology (Fintech) space. Please note these graphics are made using data through July 2017.

Financial Technology Activity by Selected Investors

The above analysis summarizes the total number of investment rounds Fintech investors participated in, and the number of unique companies funded by those investors. Major investors into the space include Accel Partners, Sequoia Capital, YC, 500 Startups, and Index Ventures. 

We are currently tracking 2336 Financial Technology companies in 16 categories across 64 countries, with a total of $79.3 Billion in funding. Click here to learn more about the full Financial Technology market report.

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Financial Technology Exits by Category and by Year - Q3 2017

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The following two graphs show exit activity in the Financial Technology sector. The graphics include data through July 2017.

Financial Technology Exit Activity by Category

The above graph summarizes the number of exits (acquisitions and IPOs) in each Financial Technology category. The Payments Backend category is leading the sector with 39 acquisitions and 8 IPOs. The Personal Finance category follows behind with 35 acquisitions and 2 IPOs.

Financial Technology Exit Activity by Year

The above graph summarizes the number of exits (acquisitions and IPOs) in Financial Technology by year. 2016 leads the sector with 56 acquisitions and 7 IPOs. 2017 follows behind with 48 acquisitions and 1 IPO.

We are currently tracking 2330 Financial Technology companies in 16 categories across 64 countries, with a total of $78 Billion in funding. Click here to see the full Financial Technology market report.

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Venture Investing in Financial Technology - Q3 2017

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The following graphs highlight venture investing trends into the Financial Technology sector. The graphics include data through July 2017.

Venture Investing by Category in Financial Technology

The above graph compares the total venture funding in each Fintech category to the number of companies in the category. The Consumer Lending category leads both metrics, with around $22B in funding and about 300 startups.

Financial Technology Average Funding by Category

The above analysis summarizes the average company funding in each Fintech category. The Consumer Lending category leads the sector with around $104M in average funding per company, followed by the Consumer Payments category with around $100M in average funding per company.

We are currently tracking 2323 Fintech companies in 16 categories across 64 countries, with a total of $77.6B in funding. Click here to learn more about the full Financial Technology market report.

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Age by Category in Financial Technology - Q3 2017

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The following graph shows average and median age in the Financial Technology sector. The graphic includes data through July 2017.

Financial Technology Age by Category

The above graph summarizes the average and median age of companies in each Financial Technology category. The Payments Backend category has the highest average age at around 10 years, and the Banking Infrastructure category is the runner-up with an average age of around 9 years. Both the Payments Backend and Banking Infrastructure categories have the highest median age at around 8.5 years. On the other hand, Retail Investing is the youngest Financial Technology category with an average age of around 6 years and a median age of around 5.5 years.

We are currently tracking 2307 Financial Technology companies in 16 categories across 64 countries, with a total of $75.4B in funding. Click here to learn more about the full Financial Technology market report. 

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Financial Technology Companies Founded by Year - Q3 2017

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The following graph shows the founding year distribution in the Financial Technology sector. The graphic includes data through July 2017.

Financial Technology Companies Founded by Year

The above graph summarizes the number of Financial Technology companies founded in a certain year. 2012 ranks at the top with around 307 companies founded in that year alone. 2013 is the runner-up with 286 companies founded in that year.

We are currently tracking 2296 Financial Technology companies in 16 categories across 64 countries, with a total of $73.8 Billion in funding. Click here to learn more about the full Financial Technology market report.

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Financial Technology Funding by Round - Q3 2017

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The following two graphs summarize the rounds of funding going into the Financial Technology space. Please note these graphics are made using data through July 2017.

Financial Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. In 2016, Series B funding has accounted for a substantial amount of total funding, with Series C and Late Stage funding coming in at second. In 2015, all types of VC funding accounted for approximately the same amount, with the exception of Seed funding.

Financial Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. The general trend over the past few years has been a larger number of early stage funding events, such as Seed, Series A, and Series B funding events--and a diminishing number of events in the later stages.

We are currently tracking 2286 Financial Technology companies in 16 categories across 63 countries, with a total of $73.2 Billion in funding. Click here to learn more about the full Financial Technology market...

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Financial Technology Exits by Category and by Year - Q3 2017

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The following two graphs show exit activity in the Financial Technology sector. The graphics include data through April 2017.

Exit Activity by Category in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in each Financial Technology category. The Payments Backend category is leading the sector with 30 acquisitions and 9 IPOs. The Personal Finance category follows behind with 33 acquisitions and 2 IPOs.

Exit Activity by Year in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in Financial Technology by year. 2016 leads the sector with 55 acquisitions and 7 IPOs. 2015 follows behind with 40 acquisitions and 3 IPOs.

We are currently tracking 2271 Financial Technology companies in 16 categories across 64 countries, with a total of $71.9 Billion in funding. Click here to see the full Financial Technology market report.

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Average and Median Age by Financial Technology Category - Q2 2017

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The following graph shows average and median age in the Financial Technology sector. The graphic includes data through April 2017.

Average/Median Age by FinTech Category

The above graph summarizes the average and median age of companies in each Financial Technology category. The Payments Backend category has the highest average age at around 10 years, and the Banking Infrastructure category is the runner-up with an average age of around 9 years. Both the Payments Backend and Banking Infrastructure categories have the highest median age at around 8 years. 

We are currently tracking 2252 Financial Technology companies in 16 categories across 64 countries, with a total of $71.3B in funding. Click here to learn more about the full Financial Technology market report. 

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Financial Technology Companies Founded by Year - Q2 2017

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The following graph shows the founding year distribution in the Financial Technology sector. The graphic includes data through April 2017.

The above graph summarizes the number of Financial Technology companies founded in a certain year. 2012 ranks at the top with around 301 companies founded in that year alone. 2013 is the runner-up with 277 companies founded in that year.

We are currently tracking 2230 Financial Technology companies in 16 categories across 61 countries, with a total of $69.8 Billion in funding. Click here to learn more about the full Financial Technology market report.

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Financial Technology Funding by Round - Q2 2017

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The following two graphs summarize the rounds of funding going into the Financial Technology space. Please note these graphics are made using data through April 2017.

Financial Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. In 2016, Series B funding has accounted for a substantial amount of total funding, with Series C and Late Stage funding coming in at second. In 2015, all types of VC funding accounted for approximately the same amount, with the exception of Seed funding.

Financial Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. The general trend over the past few years has been a larger number of early stage funding events, such as Seed, Series A, and Series B funding events--and a diminishing number of events in the later stages.

We are currently tracking 2207 Financial Technology companies in 16 categories across 63 countries, with a total of $67.3 Billion in funding. Click here to learn more about the full Financial Technology market...

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Financial Technology Exits by Category and by Year - Q2 2017

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The following two graphs show exit activity in the Financial Technology sector. The graphics include data through April 2017.

Exit Activity by Category in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in each Financial Technology category. The Payments Backend category is leading the sector with 30 acquisitions and 9 IPOs. The Personal Finance category follows behind with 33 acquisitions and 2 IPOs.

Exit Activity by Year in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in Financial Technology by year. 2016 leads the sector with 55 acquisitions and 7 IPOs. 2015 follows behind with 40 acquisitions and 3 IPOs.

We are currently tracking 2177 Financial Technology companies in 16 categories across 63 countries, with a total of $64.4 Billion in funding. Click here to see the full Financial Technology market report.

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Average and Median Age by Financial Technology Category - Q1 2017

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The following graph shows average and median age in the Financial Technology sector. The graphic includes data through January 2017.

Average and Median Age by FinTech Category

The above graph summarizes the average and median age of companies in each Financial Technology category. The Payments Backend category has the highest average age at around 10 years, and the Banking Infrastructure category is the runner-up with an average age of around 9 years. Both the Payments Backend and Banking Infrastructure categories have the highest median age at around 8 years. 

We are currently tracking 2152 Financial Technology companies in 16 categories across 61 countries, with a total of $63.9B in funding. Click here to learn more about the full Financial Technology market report. 

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Financial Technology Companies Founded by Year - Q1 2017

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The following graph shows the founding year distribution in the Financial Technology sector. The graphic includes data through January 2017.

FinTech Founding Distribution

The above graph summarizes the number of Financial Technology companies founded in a certain year. 2012 ranks at the top with around 287 companies founded in that year alone. 2013 is the runner-up with 264 companies founded in that year.

We are currently tracking 2126 Financial Technology companies in 16 categories across 61 countries, with a total of $63.3 Billion in funding. Click here to learn more about the full Financial Technology report and database.

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