Enabling Technologies

April 2018 FinTech Funding – AI/ML, Neo-Banks Topped the Charts

MEDICI

In April 2018, FinTech startups across the globe raised $2.18 billion worth of VC investments across 107 deals. In terms of MoM growth, in April 2018, global FinTech funding witnessed a significant decline of 37.5% from the $3.49 billion raised in March 2018. The US continued to dominate the funding charts with $883.5 million, which was 41% of the global FinTech funding (by value) in April. Hong Kong comes second with a 29% ($625 million) contribution, with UK, India, and China contributing 14.4% ($300 million), 4% ($96.8 million), and 3.6% ($79 million) respectively.

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AI/ML segment led the funding race in March 2018 with $613 million in funding across only two deals. There was a staggering 181% MoM growth in the funding in this space from March 2018. As expected, China topped AI funding with Alibaba’s $600M investment in Chinese AI-based facial recognition provider SenseTime, making it the highest-funded FinTech startup in April 2018 globally.

The segment that held the second place in the funding race was Neo-Banks with $250 million raised by UK-based Revolut in a lone funding deal. With this funding round, Revolut became the latest FinTech unicorn with a valuation of $1.7 billion.

Lending continued being in the top three funded segments as it raised $221 million across 22 deals to be placed third in the funding race in April 2018. The US-based Wunder ($112 million), PeerStreet ($29.5 million), the Singapore-based Funding Societies ($25 million), and India’s Capital Float ($22 million) were some lending startups who raised a good amount of funding.

InsurTech ($213.2 million) and RegTech ($116.9 million) were the other two segments which raised a over $100M of funding in April. While InsurTech has been among the top-funded segments in 2018, the emergence of RegTech has been an interesting development. InsurTech startups raised $213.2 million from 15 deals, while RegTech startups raised $116.9 million from six deals.

While there was a whooping 48% MoM decrease in InsurTech funding in April 2018 compared to March 2018, the RegTech funding in April increased by a staggering 339% MoM compared to March 2018.

The payments segment continued to lag behind in the funding race with $115.5 million raised from nine deals. There was a 27% MoM decreases in Payments funding compared to March 2018. The US-based Dosh ($44 million), SpotOn Transact ($20 million), and the India-based True Balance ($23 million) were some of the payments startups which raised a good amount of funding in April.

Another segment which garnered significant attention from investors in April was Big Data & Analytics. The startups in this space raised $99 million from just two deals, which is almost 30 times the funding amount raised in March ($3.19 million). The two companies in this segment that were able to woo investors and raise large funding deals in April 2018 were the US-based CampusLogic ($55 million) and the China-based Sensors Data ($44 million).

Diwakar Mandal

MEDICI

Diwakar is a FinTech enthusiast and an avid researcher who spends his time learning and writing about market trends, traction and disruptions in the industry. He has been active in the financial services consulting space for over four years.