InsurTech

FinTech Startups in the Americas Raised $2+ Billion in Funding in May 2018

MEDICIGlobal Head of Content

A total of 57 funding deals took place in the Americas in May 2018. The 52 disclosed funding rounds hit ~$2.034 billion, out of which US startups are responsible for ~$1.995 billion raised across 51 deals – that is over 98% of the funds raised by FinTech startups globally.

Canada was represented by three startups that raised funds (Katipult, Mindbridge, and NorthOne), while Argentina (Moni, $3 million), Brazil (Banco Neon, $22 million), and Chile (Ceptinel, $1 million) each had one startup scoring funding in May 2018.

fin1.png

Source: MEDICI Research

With an 18% representation (the highest), blockchain startups are on the third place by the value of funds raised – close to $240 million. Payments startups, on the other hand, while among the least represented ones, raised the most funds by value – $777 million.

fin2.png

Source: MEDICI Research

An enormous disparity in funding between the Payments segment and all other categories is reached by a contribution from a single company – in the last week of May, Square announced the pricing of $750 million aggregate principal amount of convertible senior notes due 2023 (Notes) in a private placement to qualified institutional buyers.

Square also granted the initial purchaser of the Notes a 30-day option to purchase up to an additional $112.5 million aggregate principal amount of the Notes solely to cover over-allotments, if any. The sale of the Notes to the initial purchaser was expected to settle on May 25, 2018, subject to customary closing conditions; it is expected to result in approximately $736.5 million in net proceeds to Square after deducting the initial purchaser’s discount and estimated offering expenses payable by Square.

The most represented startups among the ones that raised funding in May 2018 were in Seed and Round A stages, accounting for ~30% and 26% of all funded startups, respectively.

fin3.png

Source: MEDICI Research

Without taking into account Convertible Debt (since only one company is responsible for racking up the value), startups in Series B (while being the third most represented stage), attracted the highest funding value in total – ~$249 million across 10 deals (close to 19% of Series Bs took a little over 14% of funds). Meanwhile, representing almost 30% of deals (the highest number), Series A deals are accountable for just over 8.5% of raised funds by value.

fin4.png

Source: MEDICI Research

Keeping Square’s Convertible Debt financing aside, these startups raised the most funds in May 2018:

  • Tradeshift, $250 million, US

  • ThoughtSpot, $145 million, US

  • Circle, $110 million, US

  • IronNet, $78 million, US

  • Paxos, $65 million, US

  • Signifyd, $56 million, US

Note: This analysis did not take into account the cases of debt financing, ICOs, grants, and IPOs.

Elena Mesropyan

MEDICIGlobal Head of Content

Global Head of Content, MEDICI

Elena is a research professional with a background in social sciences and extensive experience in consumer behavior studies and marketing analytics. She is passionate about technologies enabling financial inclusion for underprivileged and vulnerable groups of the population around the world.