May 25, 2016
From the Global Enterprise Institute
Welcome to the 2nd edition of The Pulse of Fintech report. The series leverages Q1’16 quarterly VC data on deals and funding within the fintech industry, from CB Insights, and includes analysis and regional perspectives from KPMG Enterprise and the KPMG Fintech Global Network. It also includes overviews from global and regional perspectives, including North America, EMA and ASPAC.
Highlights from The Pulse of Fintech Q1’16 report
Global investment in private fintech companies totaled $5.7 billion in Q1’16, with $4.9 billion invested in VC-backed fintech companies across 218 deals, a 96% jump compared to the same quarter last year. The rise in funding was fueled by 3 mega-rounds which accounted for 54% of VC fintech investment in Q1’16. Overall, mega-rounds lifted quarterly investment into VC-backed fintech companies by over 150% this quarter.
The report also uncovered the following trends:
- North America saw both fintech funding and deals rebound following a major drop in Q4’15, as VC-backed fintech companies raised $1.8B across 128 deals, an increase of 80 percent in funding quarter-over-quarter.
- VC-backed deal activity rose dramatically quarter over quarter. Q4’15 saw fintech deal activity fall to the lowest point since Q2’14, but in Q1’16 VC-backed fintech deals rose to a new quarterly high of 218 globally.
- Q1’16 saw a big rebound in funding to the fintech sector, with total investment in fintech companies hitting $5.7B. Globally, VC-backed fintech companies drew $4.9B in funding, rising from just $1.9B in Q4’15.
- Larger deals spurred fintech funding growth in Q1’16. Q1’16 saw 13 $50M+ rounds to VC-backed fintech companies, a slight rise from the 10 $50M+ rounds in Q4’15.