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Financial TechnologyStartup Landscape Trends and Insights

January, 2017

Financial technology report outline

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This report provides an overview of the Financial Technology sector and is broken down into three sections

Sector Description

High-level sector metrics with sub-category

definitions

Trends & Insights

Infographics and data points for the Financial

Technology sector

Quarterly Activity

Major funding and exit events from the previous

90 days

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Financial Technology Sector Description

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Fintech startups are creating new businesses and disrupting old ones

The graphic above shows a sampling of companies in each category, stats as of January 2017 4

Financial Technology

Learn about our full 2,051 company report with $58B in funding

Lending Personal Finance Payments Equity Financing Remittances

Retail Investing Institutional Investing

Security Online Banking Research & DataCrowdfundingBusiness Tools Infrastructure

Innovation quadrant for financial technology

AVERAGE FUNDING ($M)

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ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

This quadrant shows a relative segmentation of the categories with respect to one another 5

Payments Backend

Banking Infrastructure

Financial Security

Remittance

Institutional Investing

Research and Data

Consumer Payments

SMB ToolsPOS Payments

Personal Finance

Consumer Lending

Business Lending

Digital BankingEquity Finance

Crowdfunding

Retail Investing

Fintech startups play in many different categories (1 of 3)

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Banking Infrastructure 129 Startups, $1.8B Total FundingCompanies that improve the operation of financial institutions, including banking API services and big data analytics.

Category stats as of January 2017

Consumer and Commercial Banking71 Startups, $2.3B Total FundingCompanies that provide digital banking services, such as internet-only banking institutions and virtual credit cards.

Consumer Payments192 Startups, $10B Total FundingCompanies centered around issuers and consumers, including mobile wallets, credit card aggregators, and peer-to-peer payments.

Business Lending 200 Startups, $11B Total FundingCompanies that offer new ways for businesses to obtain business loans and have their credit risk assessed.

Consumer Lending 275 Startups, $18B Total FundingCompanies that offer new ways for consumers to obtain personal loans and have their credit risk assessed.

Crowdfunding75 Startups, $512M Total FundingCompanies that help users raise non-equity and non-debt financing, such as platforms for products, social causes, and creative projects.

Fintech startups play in many different categories (2 of 3)

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Equity Financing 140 Startups, $750M Total FundingCompanies that help businesses raise capital in exchange for equity, includes crowdsourcing platforms and secondary markets.

Category stats as of January 2017

Financial Transaction Security103 Startups, $1.6B Total FundingCompanies that help secure transactions, authenticate users, and prevent fraud, using tools like algorithms and big data.

International Money Transfer66 Startups, $1.5B Total FundingCompanies that allow for the sending of money abroad easily and cheaply, such as digital remittances, mobile top-off, and gift cards.

Financial Research and Data79 Startups, $831M Total FundingCompanies that provide information services that enable investors to make better decisions, includes API and custom research sources.

Institutional Investing 157 Startups, $1B Total FundingCompanies that help professional traders and wealth managers manage their portfolios and optimize their returns.

Payments Backend and Infrastructure 189 Startups, $11B Total FundingCompanies centered around the infrastructure enabling payments, such as online payment gateways and back-ends for web/mobile apps.

Fintech startups play in many different categories (3 of 3)

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Personal Finance 205 Startups, $3B Total FundingCompanies that help consumers manage their finances, such as tracking expenses, managing a budget, and optimizing reward points.

Category stats as of January 2017

Retail Investing 156 Startups, $1.8B Total FundingCompanies that provide new ways for consumers to invest in securities, including robo-investors and social investing networks.

Point of Sale Payments 176 Startups, $8B Total FundingCompanies centered around acquirers, includes mobile POS terminals and streamlined POS methods (palm scanners, etc).

Small and Medium Business Tools 199 Startups, $7.3B Total FundingCompanies that help business manage their finances, including tools for payroll, invoicing and accounting.

Financial Technology Funding Information & Trends

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Venture investing into the space is dominated by lending and payments

The payments and lending categories account for 72% of all venture fundingand 43% of total companies in the fintech startup sector

Venture Investing in Financial Technology

Companies are categorized by function, and therefore can exist in multiple categories

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VC Funding Count

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VC funding into fintech has grown substantially in recent years

Overall fintech VC funding grew at a CAGR of 47% from 2011-2016

Financial Technology Funding Over Time

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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Fintech startups continue to show traction

Financial Technology Funding Amount by Type

2016 saw an expansion in Series B funding, implying new ideas are bearing fruit and convincing VCs to provide additional funding

Graph shows only the funding types listed therein

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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Late Stage Series D Series C Series B Series A Seed

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Fintech startups founded in 2011 lead in VC funding

Startups founded in 2011 account for 17% of the sector funding over the last decade, and includes companies like Lufax, SoFi, and CommonBond

Financial Technology Funding By Vintage Year

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Fintech startups are a global phenomenon

Financial Technology Startup Count by Country

0 1,040Companies

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Top VC investors are making bets into fintech

Selected Investor Activity in Financial Technology

The above count represents a subset of overall investor activity

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Number of Investments Number of Companies Backed

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Fintech exit activity is healthy and growing

Exit events within the fintech sector grew by 850% between 2011 and 2016

Financial Technology M&A and IPO Events

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Financial Technology Quarterly Notable Events

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Recent fintech funding events

There have been 278 fintech funding events in the past 90 days

Financial Technology Funding Type Counts from Previous 90 Days

Graph shows only the funding types listed therein

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Seed Series A Series B Series C Series D Late Stage

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Recent fintech funding amounts

Notable Recent Financial Technology Funding Events

Company Funding Type Amount Date

Debt Financing $200,000,000 Dec 9, 2016

Series E $180,000,000 Oct 5, 2016

Series D $150,000,000 Nov 25, 2016

Series F $100,000,000 Jan 11, 2016

Debt Financing $100,000,000 Dec 16, 2016

Fintech startups raised $2.9 billion in the past 90 days

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Notable recent fintech funding events

Notable Recent Financial Technology Acquisitions

Company Acquirer Amount Date

$2,700,000,000 Oct 23, 2016

$460,000,000 Oct 3, 2016

$180,000,000 Oct 14, 2016

$20,000,000 Jan 9, 2017

Unknown Jan 10, 2017

There have been 16 exit events in the past 90 days, consisting of 14 acquisitions and 2 IPOs

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