funding to vc-backed fintech companies hit - kpmg global · source: the pulse of fintech, q3 2016,...

Source: The Pulse of Fintech, Q3 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) November 16th, 2016. #FINTECH North America Asia saw a fintech funding quarterly increase in Q3’16, while North America and Europe fintech funding dropped. Globally, VC-backed fintech mega-rounds saw a decline; however, Asia saw $50M+ rounds stay level for the 4th straight quarter. Funding activity to VC-backed North American fintech companies in Q3’16 fell 68%; Deal activity also dropped 5%. Both VC-backed fintech funding and deals in New York fell for the 2nd consecutive quarter to hit $119M in Q3’16. VC-backed fintech deals in California rose to a 5-quarter high in Q3'16, but funding fell 31%. © 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. Global Funding to VC-backed fintech companies hit $2.4B across 178 deals in Q3’16. Asia In Asia, corporates participated in more than ½ of all deals to VC-backed fintech startups in Q3’16 compared to 36% in Q2’16. Funding to VC-backed Indian fintech startups fell 19% on a quarterly basis, with deals also witnessing a 40% drop. In Q3’16, deal activity to VC-backed fintech companies in Asia reached a 5-quarter low, with 35 deals recorded. Europe Germany outpaces the UK with almost 35% more funding to VC-backed fintech companies in Q3’16. Europe has yet to see a $50M+ financing round to VC-back fintech companies in 2016. Corporate participation in European fintech deals rose for the 3rd straight quarter to 26% in Q3’16. Deals on pace to drop below 2015 levels with only $233M raised by European VC-backed fintech companies in Q3’16. In Q3’16, VC-backed fintech deal activity hit its lowest level since Q2’14. Median late-stage fintech deal size in North America dropped to $21.9M, the 2nd lowest quarterly in the 5-quarter trend. Seed-stage VC-backed fintech companies in Asia accounted for 17% of deal share in Q3’16, a 3-quarter low after taking 40%+ in the prior 2 quarters. Asia North America Europe

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Source: The Pulse of Fintech, Q3 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) November 16th, 2016.

#FINTECH

North America

Asia saw a fintech funding quarterly increase in Q3’16, while North America and Europe fintech funding dropped.

Globally, VC-backed fintech mega-rounds saw a decline; however, Asia saw $50M+ rounds stay level for the

4th straight quarter.

Funding activity to VC-backed North American fintech companies in Q3’16 fell

68%; Deal activity also dropped 5%.

Both VC-backed fintech funding and deals in New York fell for the 2nd consecutive quarter to hit

$119M in Q3’16.

VC-backed fintech dealsin California rose to a5-quarter high in Q3'16,but funding fell

31%.

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.

GlobalFunding to VC-backed fintech companies hit

$2.4B across

178 deals in Q3’16.

Asia

In Asia, corporates participated in more than ½ of all deals to VC-backed fintech startups in Q3’16 compared to

36% in Q2’16.

Funding to VC-backed Indian fintech startups fell

19% on a quarterly basis, with deals also witnessing a 40% drop.

In Q3’16, deal activity to VC-backed fintech companies in Asia reached a 5-quarter low, with

35 deals recorded.

Europe

Germany outpaces theUK with almost