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
Ave
rage
Age
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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2011 2012 2013 2014 2015 2016 2017
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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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2011 2012 2013 2014 2015 2016 2017
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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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Exit
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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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Seed A B C D Late Stage
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Funding Event
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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
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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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Previous Total Quarterly Funding Percent Growth
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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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2011 2012 2013 2014 2015 2016 2017
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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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Seed A B C D Late Stage
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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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