The Pulse of Fintech – Q2 2016

The Pulse of Fintech – Q2 2016

Quarter 2 analysis shows a tougher climate for marketplace lenders, a drop in mega-round activity, and investment to venture capital-backed fintech startups falling 49 percent. Despite this decline, venture capital investment in fintech is on pace to exceed 2015 results.

National Sector Leader, Banking and Global Co-leader, KPMG Fintech practice

KPMG Australia

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The Pulse of Fintech is a quarterly report created by KPMG along with KPMG Enterprise's Global Network for Innovative Startups and CB Insights (the 'go to' name for insights related to venture capital investment) which launched on 17 August 2016. The series analyses the latest global trends in venture capital investment data on the fintech sector.

Given the significant interest in fintech globally, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG and CB Insights are partnering to bring you the pulse on fintech investment globally.

The Q2 report shows that amid a tougher climate for marketplace lenders and a drop in mega-round activity, investment to VC-backed fintech startups fell 49 percent, but that despite this decline, VC investment in fintech is on pace to exceed 2015 results. Overall global investment in fintech companies across both venture-backed and non-venture-backed companies totaled USD$9.4 billion in Q2'16, buoyed by Ant Financial's $4.5 billion financing. Q2’16 saw VC-backed fintech companies raise $2.5 billion across 195 deals, a 12 percent drop in deal volume compared to Q1'16.

This quarter, we also examine key global trends along with what's happening in fintech within key regions and will explore answers to a number of questions:

  • What areas of fintech are gaining momentum around the world?
  • How is the definition of fintech continuing to evolve?
  • What are the recent developments around regulatory frameworks?
  • What is driving VC investment in InsurTech?

See the full report for details.

Global and regional snapshot (infographic)

The following infographic provides a global and regional overview of these findings and other key developments highlighted in the report created by KPMG and CB Insights.

View the PDF version (PDF 2.2MB)

The Pulse of Fintech – Q3 2016

Quarterly analysis of global venture capital trends in the fintech sector.

 
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