The Pulse of Fintech – Q2 2016

The Pulse of Fintech – Q2 2016

Despite an investment decline in Q2’16, fintech on pace to exceed 2015 results.

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‘The Pulse of Fintech’ is a quarterly report created by KPMG along with KPMG Enterprise’s Global Network for Innovative Startups and CB Insights (the ‘go to’ name for insights related to venture capital investment) which launched on August 17th, 2016. The series analyses the latest global trends in venture capital investment data on the fintech sector.

Given the significant interest in fintech globally, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG and CB Insights are partnering to bring you the pulse on fintech investment globally. Each quarter, we’ll highlight key fintech deals, issues and challenges around the world, in addition to key trends and insights related to fintech in key regions, including the US, Asia and Europe.

The Q2 report shows that amid a tougher climate for marketplace lenders and a drop in mega-round activity, investment to VC-backed fintech startups fell 49 percent, but that despite this decline, VC investment in fintech is on pace to exceed 2015 results. Overall global investment in fintech companies across both venture-backed and non-venture-backed companies totaled USD$9.4 billion in Q2’16, buoyed by Ant Financial’s $4.5 billion financing. Q2’16 saw VC-backed fintech companies raise $2.5 billion across 195 deals, a 12 percent drop in deal volume compared to Q1’16.

This quarter, the quarter also examinies key global trends along with what’s happening in fintech within key regions and will explore answers to a number of questions including:

  • What areas of fintech are gaining momentum around the world?
  • How is the definition of fintech continuing to evolve?
  • What are the recent developments around regulatory frameworks?
  • What is driving VC investment in InsurTech?

See the full report (PDF 2.7 MB) for details.

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