January 2018

Q4 Startup Highlights

FINANCIAL TECHNOLOGY

Quarterly financial technology highlights

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This brief overview of the financial technology sector provides three sections

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Sector Summary

Macro-level views on the state of the financial

technology sector

Latest Activity

Major funding and exit events from the previous

quarter

Category Discovery

Deep dive into a single financial technology

category

Sector Summary

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FINANCIAL TECHNOLOGY

16 Categories

2,285 Companies

$80B Funding

Sector stats are continuously changing, data cumulative as of December 2017

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FINANCIAL TECHNOLOGY

The Venture Scanner research platform currently tracks 2,285 financial tech

startups with $80B in funding

The graphic above shows a random sampling of companies in each category, data cumulative as of December 2017

Lending(483 Companies)

Retail Investing(166 Companies)

Security(113 Companies)

Personal Finance(238 Companies)

Payments(492 Companies)

Equity Financing(140 Companies)

International Transfer(76 Companies)

Institutional Investing(181 Companies)

Research & Data(83 Companies)

Infrastructure(150 Companies)

Business Tools(233 Companies)

Crowdfunding(79 Companies)

Digital Banking(75 Companies)

Consumer Lending

Business Lending

Payments Backend

Transaction Security

PoS Payments

Digital Banking

Consumer Payments

International Transfer

Infrastructure

SMB Tools

Retail Investing

Personal Finance

Financial Research

Institutional Investing

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Innovation quadrant for financial technology

Average Funding

ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

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rage

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This quadrant shows a relative segmentation of the categories with respect to one another, data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

Crowdfunding

Equity Financing

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VC funding into fintech continues to grow steadily over the last few years

Overall financial technology funding grew at a CAGR of 57% from 2012-2017, and 2017 was 102% of 2016 funding

Financial Technology Annual Funding Over Time

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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The most recent quarter was much higher than previous Q4 funding totals

The funding in Q4 2017 was 165% of the Q4 2016 funding total

Financial Technology Quarterly Funding Over Time

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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Exits within the space are on a general upward trend

Quarterly financial technology exits in 2017 are higher than 2016, with Q4 2017 seeing an increase of 6% over Q4 2016

Financial Technology Exit Events Over Time

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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Latest Activity

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Financial technology funding events were mostly early stage in Q4 2017

There were 157 funding events this quarter, 33% of which were Series A

Recent Financial Technology Funding Round Counts

Graphs shows only the funding rounds listed thereinVisit www.venturescanner.com to learn more about our financial technology research platform

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All fintech categories saw funding this quarter

Financial technology startups raised $4.5 billion over the last quarter

Quarterly Financial Technology Category Funding

Companies are categorized by function, and therefore can exist in multiple categories.Visit www.venturescanner.com to learn more about our financial technology research platform

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Recent financial technology funding events

Notable Recent Financial Technology Funding Events

Company Funding Type Amount Date

Debt Financing $400,000,000 Nov 26, 2017

Series E $280,000,000 Nov 2, 2017

Series B $220,000,000 Nov 8, 2017

Series B $214,000,000 Oct 12, 2017

Series E $200,000,000 Dec 11, 2017

The top 5 fintech events accounted for 29% of quarterly funding

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Recent financial technology exit events

Notable Recent Financial Technology Exit Events

Company Acquirer Amount Date

$400,000,000 Oct 17, 2017

$155,000,000 Oct 4, 2017

$62,000,000 Nov 20, 2017

$1,000,000 Dec 21, 2017

Unknown Dec 14, 2017

There were 18 financial technology exits this past quarter, 13 of which were acquisitions

Visit www.venturescanner.com to learn more about our financial technology research platform

Category Discovery – Consumer Lending

Every quarter a new category will receive a deep dive, providing comparisons to other categories and discussing trends

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Consumer lending is one of the leading categories within the fintech sector

The consumer lending category accounts for 23% of funding in the sector and saw healthy growth last quarter

Venture Investing in Financial Technology

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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Companies within consumer lending are generally better funded than their peers

Consumer lending has a median funding $10M higher than the average of other categories, and a third quartile that is $26M higher

Financial Technology Category Funding Quartiles

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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Annual consumer lending funding amounts are holding steady

Overall consumer lending funding grew at a CAGR of 80% from 2012-2017

Consumer Lending Annual Funding

Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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Consumer lending funding amounts have shifted to Series B

Consumer Lending Funding Amount By Round

While recent quarters have been lower than previous highs, Series B financings accounted for 44% of total VC funding in the past quarter

Graphs shows only the funding rounds listed therein. Data cumulative as of December 2017Visit www.venturescanner.com to learn more about our financial technology research platform

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Funding within consumer lending is moderately concentrated

Consumer Lending Companies with Largest Funding Amounts

Company Latest Round Amount Location

Series F $2,200,000,000 San Francisco, USA

Series E $1,800,000,000 Chicago, IL, USA

Series B $1,700,000,000 China

Venture $1,100,000,000 China

Private Equity $1,000,000,000 China

The top 5 consumer lending companies by total funding account for 32% of overall category funding

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About Venture Scanner

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