September 17, 2018
In August 2018, FinTech startups across the globe raised $3.69 billion worth of VC/PE investments across 148 deals. In terms of MoM trends, there was a significant growth of 14% from the $3.23 billion raised by FinTechs in terms of VC/PE funding in July 2018. In terms of the number of deals, there was a 13.5% decline (MoM) from the 171 VC funding deals in July 2018.
In region-specific terms, Asia dominated global FinTech VC funding in August with 51.8% in contributions in terms of funding value ($1.9 billion) and 26.4% in terms of the number of deals (39). Americas placed second with 36.3% in contributions to global FinTech VC funding by value ($1.34 billion) and 46.6% in terms of the number of deals (69).
In terms of the countries, China led the global FinTech VC funding race with $1.25 billion raised across 9 deals, contributing to 33.8% of the global FinTech VC funding (by value) in August. The US came a very close second with 32.6% ($1.2 billion raised across 61 deals) contribution, with India, the UK and Germany contributing 13% ($478 million), 7.8% ($286 million) and 3.4% ($125 million) respectively in terms of funding value.
Among the segments, Blockchain led the VC funding race in August 2018 with $1.16 billion in funding across only 12 deals. There was a staggering 1670% MoM growth in the funding in this space compared to July 2018 where Blockchain startups raised $65.8 million. This was majorly contributed by the high-value funding deal of China-based Bitcoin mining startup Bitmain which raised $1 billion. Another significantly large deal was that of US-based Dfinity which raised $102 million.
The segment that held the second place in the funding race was InsurTech, which saw $915.2 million being raised across 32 funding deals. Some of the major funding deals in this segment were – $375 million raised by Oscar, $110 million raised by Tempus, $100 million raised by Root Insurance, and $100 million raised by Zhong An.
Payments was third in the list of segments with the highest VC funding in August 2018; the startups in this space raised $597.4 million across 15 deals. The Payments funding chart was led by Indian digital payment giant Paytm which raised $356 million in its series F funding round by Berkshire Hathaway. Here are some other noteworthy funding rounds raised by startups in this segment: $140 million raised by the UK-based Judo and $65.4 million raised by the India-based PhonePe.
Lending and B2B FinTech were the other two among the top five FinTech segments in terms of funding value in August. Lending startups raised $428.6 million across 15 deals. Here are some noteworthy deals in the Lending space in August: $84 million raised by the Canada-based Progressa, $64.3 million raised by the UK-based Crowdstacker, and $62 million raised by the US-based Upgrade.
On the other hand, B2B FinTech startups raised $134.7 million across 10 deals. The key contributor to the global funding in this segment was Japan-based accounting/tax software provider Freee which raised $60 million in its series E funding round.