FinTech

FinTech Funding Analysis from the Last Six Months Reveals Some Interesting Trends

MEDICI

At MEDICI, we track 12,000 FinTech startups and also keep tabs on funding as well as other information on an ongoing basis. Through bottom-up research, we come up with an analysis of FinTech funding on a monthly basis. This tedious exercise reveals interesting trends from an investment perspective. Here are the FinTech funding trends from the last six months:

May

In May 2018, FinTech startups across the globe raised $1.75 billion worth of VC investments across 113 deals. In terms of MoM growth, in May 2018, global FinTech funding witnessed a decline of 19.8% from the $2.18 billion raised in April 2018. The US continued to dominate the funding charts with $1.06 billion raised across 51 deals, contributing to 60% of the global FinTech funding (by value) in May. India came a distant second with a 14% ($249.8 million raised across 20 deals) contribution. China, the UK, and Israel contributed 10% ($173.3 million), 8% ($134.4 million), and 2% ($33 million) respectively.

June

In June 2018, FinTech startups around the world raised $3.764 billion worth of VC investments across 147 deals. This was a whopping 116% growth (MoM) from the $1.746 billion raised in May 2018. In terms of the number of deals, there was a 30% MoM growth in June compared to the number of deals in May.

The US continued to dominate the funding charts with $1.16 billion raised across 56 deals, contributing to 31% of the global FinTech funding (by value) in June. China came a close second with a 25% ($938.5 million raised across nine deals) contribution. Hong Kong, India & Israel contributed 16.7% ($630 million), 7.5% ($281.7 million) & 3.4% ($129.4 million) respectively.

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July

In July 2018, FinTech startups across the globe raised $3.226 billion worth of VC/PE investments across 171 deals. In terms of MoM trends, this was a huge decline of 82% from the whopping $17.9 billion raised by FinTechs in terms of VC/PE funding in June 2018. However, the funding raised in June was heavily spiked due to the $14 billion VC/PE funding raised by Ant Financial. If we exclude this huge deal, then the funding in July would see a decline of 18.7% in terms of MoM value from June 2018. In terms of the number of deals, there was a 16% growth (MoM) from the 147 VC funding deals in June 2018.

In region-specific terms, the Americas dominated global FinTech VC funding in July with 49% in contributions in terms of funding value ($1.56 billion) and 43% in terms of the number of deals (74). Asia placed second with 33% in contributions to global FinTech VC funding by value ($1.06 billion) and 27% in terms of the number of deals (46). In terms of the countries, the US continued to extend its dominance in global FinTech VC funding with $1.37 billion raised across 67 deals, contributing to 42.7% of the global FinTech VC funding (by value) in July. China came a distant second with 16% ($513 million raised across 12 deals) in contributions. The UK, India, and Israel contributed 13.2% ($427 million), 8.8 % ($284 million) and 3.2% ($104 million) respectively in terms of funding value.

August

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). The Americas placed second with 36.3% in contribution to global FinTech VC funding by value ($1.34 billion) and 46.6% in terms of the number of deals (69).

September

FinTech startups around the world raised $4.49 billion in funding in September 2018 across 146 VC funding deals – a 16% growth from the $3.89 billion raised by FinTech startups in August 2018. Meanwhile, the number of deals saw a minor decrease of 2% from 149 deals in August 2018.

Asia dominated global FinTech VC funding in September with a 45.3% contribution in funding value ($2.03 billion) and 26% with regard to the number of deals (38). The Americas placed second with 31.2% in contributions to the global FinTech VC funding in September by value ($1.4 billion) and 42.5% in terms of the number of deals (62).

October

In October 2018, FinTech startups across the globe raised $2.71 billion worth of VC/PE investments across 134 deals. In terms of MoM trends, there was a large decline of 40% from the $4.49 billion raised by FinTechs in terms of VC funding in September 2018. In terms of the number of deals, there was a significant decline of 8.2% MoM compared to 146 deals in September.

In region-specific terms, the Americas dominated global FinTech VC funding in October with 48.9% in contributions in terms of funding value ($1.33 billion) and 41.8% in terms of the number of deals (56). Asia placed second with 36.3% in contributions to global FinTech VC funding in October by value ($989.2 million) and 27.6% in terms of the number of deals (37). In terms of countries, the US led the charge in October with 47.1% in contributions in terms of funding value ($1.27 billion) across 52 funding deals. China came a distant second with 15% in contributions to global FinTech VC funding by value ($406 million). In terms of the number of deals, China contributed 6.7% in terms of global FinTech VC funding in October. The Philippines ($323 million), the UK ($222 million), and India ($136 million) were the other three among the top five countries in terms of VC/PE FinTech investments in October.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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