Aug 17, 2016
From the Global Enterprise Institute
Welcome to the 3rd edition of The Pulse of Fintech report. The series leverages Q2’16 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 Q2’16 report
Overall global investment in fintech companies across both venture-backed and non-venture-backed companies totaled US$9.4 billion in Q2’16, buoyed by Ant Financial’s US$4.5B financing. Investment directed to VC-backed fintech startups fell 49%. However, despite this decline, VC investment in fintech is on pace to exceed 2015 results.
The report also uncovered the following trends:
- In North America, deal activity fell to a 5-quarter low in Q2’16, falling from 130 deals in Q1’16 to 97 deals in Q2’16. Deal activity in North America fell 26% in Q2’16 from the same quarter last year.
- Globally, after fintech deal activity rebounded in Q1’16, deals dropped 12% in Q2’16 on a quarterly basis and were down 11% from the same quarter last year.
- Globally, corporate participation in VC-backed fintech deals rose to a 5-quarter high and surpassed the 30% mark in Q2’16 to hit 32%, compared to 23% in Q2’15. In North America corporate participation rose to 30% of all fintech deal activity, up from 23% in the previous quarter.
- Median early-stage fintech deals were $4.6M in Q2’16, hitting a 5-quarter high and 53% increase over Q1’16.