March 2, 2016
January 2016 was extraordinarily fruitful for FinTech as it fueled the industry with an extra $7 billion. As the second month of 2016 has come to an end, let’s look at how February has treated FinTech around the world so far.
According to Financial Technology Partners (an investment bank focused on FinTech), February 2016 counted 116 financing deals in FinTech with a total of $1.4 billion being poured into FinTech companies across segments. The number is significantly lower than in January but it is an extra billion and a half into FinTech’s pocket.
Let’s take a closer look at the structure of this $1.4 billion raised by 92 companies (as 14 companies didn’t report the funds raised). The funding would have probably reached $1.5 billion with all numbers reported.
Investments by segment (representation)
Payments/loyalty/e-commerce and banking/lending are the most active sectors again in terms of the number of companies that raised funds – 28% representation each. Those two segments have been the hottest ones for a while as the highest number of unicorns are focusing on lending and payments.
FinTech companies operating in the securities/capital markets/wealth management segment took the third place (just like in January) with 17% of companies represented in the pool – 2% higher than in January.
Financial management solutions companies represent 11% of the 92 financing deals.
InsuranceTech demonstrated some stability with the same 5% of companies represented in the pool of funded ones in February. Compiled with FinHCIT, in total, 14% of the companies working in Health and InsuranceTech raised funds last month, which is 1% lower from January. However, InsuranceTech remains one of the most interesting and promising segments as there is a range of InsuranceTech startups paving its way into the trillion-dollar industry.
Investments by segment (funds raised)
Even though InsuranceTech (referring to it as a compile list of FinHCIT and insurance segments) has lost 1% in representation, in February 2016, companies working around solutions related to the human health have raised the most funds – 38%.
The second place for the most funds raised went to the banking/lending segment with 22% of the total funds raised; payments/loyalty/e-commerce took the third place with 19%.
The most funded companies
Now let’s move on to the actual numbers. FinHCIT was able to secure more than half a billion thanks to one company – Oscar. A week ago, Oscar had raised $400 million in funding from Fidelity Investments, Founders Fund, General Catalyst Partners, Google Capital, Khosla Ventures, Lakestar and Thrive Capital.
Companies operating in banking/lending have raised $300 million while payments/loyalty/e-commerce companies have raised $270 million.
Here are the companies that raised the highest funds:
As previously mentioned, Oscar raised $400 million (Fidelity Investments, Founders Fund, General Catalyst Partners, Google Capital, Khosla Ventures, Lakestar and Thrive Capital).
Opendoor raised $80 million from Access Venture Partners, GGV Capital, Khosla Ventures and SVB Capital.
VPay USA raised $76 million from FTV Capital.
Renew Financial raised $70 million from Angeleno Group, Apollo Global Management, Claremont Creek Ventures, LL Funds, NGEN Partners and Prelude Ventures.
Health Catalyst raised $70 million from CHV Capital, EPIC Ventures, Kaiser Permanente, Leavitt Equity Partners, Leerink Partners, MultiCare Health System, Norwest Venture Partners, OSF Healthcare System, Partners HealthCare, Sands Capital, Sequoia Capital, Tenaya Capital and UPMC.
Blockstream raised $55 million from AME Cloud Ventures, AXA Strategic Ventures, Blockchain Capital, Digital Garage, FuturePerfect Ventures, Horizons Ventures, Khosla Ventures, Mosaic Ventures and Seven Seas Partners.
Aria Systems raised $50 million from Bain Capital Ventures, Hercules Capital, Hummer Winblad Venture Partners, InterWest Partners, Madison Bay Capital Partners, Rembrandt Venture Partners, Venrock and VMware.