Blockchain

August 2018 FinTech VC Funding – Blockchain, InsurTech & Payments Topped the Charts

MEDICI

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.

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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.

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.