PRIVATE EQUITY IN FINTECH SECTOR...ONDECK Lending $1.3B $5.2B $5.1B $2.5B 126 152 142 86 1H 2014 2H...

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For more information, visit www.tresvista.com $2.3 $2.3 $2.4 $3.5 $4.0 $4.5 $5.0 $5.0 $8.0 $10.0 PRIVATE EQUITY IN FINTECH SECTOR Why Consumers Adopt Fintech Solutions? Leading Themes 43.4% Ease of setting accounts 15.4% Attractive rates/fees 12.4% Access to different products and services 11.2% Better online experience and functionality 1.8% Greater level of trust vs. traditional institutions 5.5% Innovative products vs. traditional banks 10.3% Better quality of service Lending tech Peer-to-peer lending and underwriting platforms based on machine learning algorithms Payments/billing tech Payments processing facilitators, payments card developers and billing softwares Money transfer Peer-to-peer platforms which facilitate individuals to transfer money globally Personal wealth management Solution providers for managing personal bills, accounts, credit, assets and investments Equity crowdfunding Platforms for raising equity from a collection of individuals for projects / companies InsurTech Underwriting, claims, distribution and brokerage platforms for insurers Blockchain Firms in the distributed ledger space, spanning Bitcoin wallets, security providers to sidechains Institutional markets tech Tools such as financial modeling and analysis software for financial institutions Funding Activity by Product Segments Fintech Global Landscape total global VC funding (2011-2016 YTD) companies across 54 countries Investment ($) CAGR 100 200 300 400 500 600 700 800 900 1,000 0 10% 20% 30% 40% 50% 60% # of deals 2010 - 2015 Retail Lending Retail Investments SME Lending & Asset Finance Non-life Corporate Payments Account Mgmt-Retail Retail Payments Merchant Acquiring Other 1,362 $15.4B funding in North America Select Unicorns Valuation ($B) Key Growth Drivers CAGR 2014-2020 Value of the indicator by 2020 Online banking penetration Payment transactions at terminals POS terminals Smartphone penetration Credit penetration 12.1% 9.2% 8.8% 7.4% 6.8% 396B 104.4M 53.5% 32.1% 46.4% Lending Payment Insurance $36.9B 756 companies in USA Bubble size is indicative of the total investment amount Zhong An Insurance

Transcript of PRIVATE EQUITY IN FINTECH SECTOR...ONDECK Lending $1.3B $5.2B $5.1B $2.5B 126 152 142 86 1H 2014 2H...

Page 1: PRIVATE EQUITY IN FINTECH SECTOR...ONDECK Lending $1.3B $5.2B $5.1B $2.5B 126 152 142 86 1H 2014 2H 2014 1H 2015 2H 2015 M&A Count M&A Revenue Multiple M&A EBITDA Multiple IPO Count

For more information, visit www.tresvista.com

$2.3

$2.3

$2.4

$3.5

$4.0

$4.5

$5.0

$5.0

$8.0

$10.0

PRIVATE EQUITY IN FINTECH SECTOR

Why Consumers Adopt Fintech Solutions? Leading Themes

43.4%Ease of setting accounts

15.4%Attractive rates/fees

12.4%Access to different products and services

11.2% Better online experience and functionality

1.8%Greater level of trust vs. traditional institutions

5.5%Innovative products vs. traditional banks

10.3%Better quality of service

Lending tech

Peer-to-peer lending and underwriting platforms based on machine learning algorithms

Payments/billing tech

Payments processing facilitators, payments card developers and billing softwares

Money transfer

Peer-to-peer platforms which facilitate individuals to transfer money globally

Personal wealth management

Solution providers for managing personal bills, accounts, credit, assets and investments

Equity crowdfunding

Platforms for raising equity from a collection of individuals for projects / companies

InsurTech

Underwriting, claims, distribution and brokerage platforms for insurers

Blockchain

Firms in the distributed ledger space, spanning Bitcoin wallets, security providers to sidechains

Institutional markets tech

Tools such as financial modeling and analysis software for financial institutions

Funding Activity by Product SegmentsFintech Global Landscape

total global VC funding (2011-2016 YTD)

companies across

54 countries

Investment ($) CAGR

100 200 300 400 500 600 700 800 900 1,0000

10%

20%

30%

40%

50%

60%

# of deals 2010 - 2015

Retail Lending

Retail Investments

SME Lending & Asset Finance

Non-life

Corporate PaymentsAccount Mgmt-Retail Retail

Payments

Merchant Acquiring

Other

1,362

$15.4B funding in North America

Select Unicorns Valuation ($B)Key Growth Drivers

CAGR 2014-2020 Value of the indicator by 2020

Online banking penetration

Payment transactions at terminals

POS terminals

Smartphone penetration

Creditpenetration

12.1%

9.2%

8.8%

7.4%

6.8%

396B

104.4M

53.5%

32.1%

46.4%

Lending Payment Insurance

$36.9B

756 companies

in USA Bubble size is indicative of the total investment amount

Zhong An Insurance

Page 2: PRIVATE EQUITY IN FINTECH SECTOR...ONDECK Lending $1.3B $5.2B $5.1B $2.5B 126 152 142 86 1H 2014 2H 2014 1H 2015 2H 2015 M&A Count M&A Revenue Multiple M&A EBITDA Multiple IPO Count

For more information, visit www.tresvista.com

PRIVATE EQUITY IN FINTECH SECTOR

TresVista Financial Services is the leading provider of high-end outsourced support for asset managers, investment banks, research firms, and corporates. TresVista delivers operational efficiencies and cost savings to its clients while providing them with dedicated teams to support them across various functional activities. Services

include investor relations, fund raising, deal sourcing, deal execution, valuation, research, financial modeling, portfolio management, marketing and legal support.

ABOUT TRESVISTA

($ Billion)

Seed/Angel Series A Series B Series C Series D Series E Other

Deal TypesVC Funding Trends

Q2’1535% 23% 11% 11% 3% 3% 13%

Q3’1532% 26% 17% 7% 3% 2% 13%

Q4’1534% 25% 17% 6% 2% 2% 14%

Q1’1634% 24% 16% 7% 4% 2% 12%

Q2’1629% 26% 13% 12% 4% 2% 15%

807

2011 2012 2013 2014 2015

710

560

451

311

$2.1$3.1$2.5

$7.3

$14.5

DealsInvestments

Funding

$7.4b

YTD

Deals

416

Fintech Exits

Top Recent IPOs

$4.7B

SQUAREPayment Processing

LENDING CLUBLending

$2.9B

ONDECKLending

$1.3B

$5.2B

$5.1B

$2.5B

126

152142

86

1H 2014 2H 2014 1H 2015 2H 2015

M&A Count

M&A Revenue Multiple M&A EBITDA Multiple

IPO Count

2.60x3.20x

2.40x3.20x

16.0x15.0x

14.6x

12.1x

7

10

6

6

Top M&A

Sources: Crunchbase, Pulse of Fintech August 2016, Hampelton Partners, Venture Scanner Insights, CB Insights, KPMG, Statista

Most Active Investors

PEs/VCs Corporates Banks

14.4xAverage

EV/EBITDA

2.90xAverage EV/Sales