KPMG Pulse of Fintech Q3 2017
Dublin, 9 November, 2017 – KPMG has published its latest Pulse of Fintech report, a quarterly global analysis of investment in fintech. Key findings show that total global fintech funding continues to remain strong, with US$8.2 billion invested in Q3’17, well above the U$6.3 billion raised in the same period last year.
The US led global fintech investment in Q3’17, with US$5 billion deployed across 142 deals. Europe and Asia fell behind the US, with Europe fintech deals accounting for US$1.66 billion of investment across 73 deals, and Asia accounting for US$1.21 billion across 41 deals.
While total fintech investment in Europe dipped in Q3’17 to US$1.66 billion, from US$2 billion in Q2, VC funding was particularly strong in Q3 at over US$700 million. Median late stage fintech deal size for the quarter sat at US$17.3 million, well above 2016’s US$10.2 million. Corporate VC investment in Europe has also skyrocketed compared to 2016, with a record setting US$647 million already invested with CVC participation YTD. Corporate participation in fintech VC deals is also up dramatically – from 13 percent in 2016 to 20 percent in 2017 YTD.
Speaking on the findings at the Web Summit MoneyConf Stage, Lisbon, Anna Scally, Partner, Head of Technology and Media and FinTech Lead, KPMG in Ireland, said: “The level of corporate participation in fintech VC investment deals in Europe can largely be attributed to a growing recognition by traditional financial institutions that digital transformation is critical. Build or buy is always an important consideration. Many of these financial institutions have started to heavily invest in Fintech companies as a strategy to give them the direct access to the new technologies they need to compete."
Globally, despite healthy investment activity, the volume of VC fintech deals dropped dramatically in Q3’17, particularly at the earlier deal stage. The number of angel and seed stage fintech deals plummeted to 67 for the quarter, a low not seen since Q1’13. This reflects the trend of investors focusing on larger deals and higher quality companies with proven business models.