January 3, 2016
December is an international holiday season, when retailers are scoring the highest profits, banks and payments processors are not sleeping waiting for fraud to burn their funds and general population enjoying vacation. However, some FinTech players are not slowing down in the face of winter frost and global vacations. A mass of FinTech enthusiasts managed to score significant funding in December 2015, while others were already looking at 2016 opportunity, crossing December from financial calendars. Let’s look at those passionate FinTechies.
In total, about 81 FinTech companies raised close to $944.5 million in December. US, UK and Australian FinTech are the most represented ones, while China`s FinTech outpaces Australia and UK by the amount raised.
As expected, most funds were raised by FinTech startups from the US. 44% of companies raised funds in December are US companies, and they scored 50% of all investments in FinTech in December.
Ironically, with Singapore FinTech ecosystem developing at an outstanding momentum, FinTech startups from there with marginal investment sizes didn’t even deserve a separate piece of the chart.
China`s FinTech, on contrary, had less companies that raised funds in December. However, in terms of the funds amount, it outpaced UK and Australia with almost $160 million invested in 2 lending companies - Dashu Finance and Fengjr.com (Phoenix Finance). We have been actively exploring Asian FinTech ecosystem, in particular, Hong Kong FinTech startups and investors. Hong Kong FinTech ecosystem is expected to flourish in the future and become one of the world's innovation hubs along with Silicon Valley, New York and London. With the financial power and 70 out of 100 banking giants operating in Hong Kong, outstanding opportunities can be open for those looking to disrupt Hong Kong financial services industry.
Among UK FinTech`s who got funded are Trulioo ($15 million), TRData ($1.3 million), TransferGo ($2.5 million) and others with significantly lower funds accumulated.
US FinTech hard workers that went for another round were Factom ($1.5 million), NextCapital ($16 million), Oration ($11.2 million), Lemonade ($13 million), Clover Health ($35 million) and others.
Given that some companies didn’t disclose the amount of funds raised, lending company Pave raised the highest amount of funds - $300 million in private equity, solely making US a leading country by funds invested in FinTech in December.
Lending and Payments startups are the most active sectors in terms of the number of companies that raised funds. We have noticed before that those two FinTech sectors are the most attractive ones for investors, as the highest number of unicorns are focusing on lending and payments. Interestingly, as we have been predicting, Insurance is becoming a hot topic and hot sector for bright entrepreneurs to develop disrupting solutions. Investors also have been paying attention to the sector, as insurance industry is the biggest industry in the US with net premiums of $1.1 trillion in 2014. There is already a range of InsuranceTech startups paving their way to a trillion-dollar industry.
So who exactly raised funds in December while the world is on vacation? Following are some of the FinTech companies around the world that got funded in December in various rounds.