August 27, 2018
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, with the UK, India, and Israel contributing 13.2% ($427 million), 8.8 % ($284 million) and 3.2% ($104 million) respectively in terms of funding value.
Among segments, Lending led the VC funding race in July 2018 with $865.1 million in funding across 38 deals. This was a 9.5% MoM growth in funding in this space compared June 2018. This segment saw a number of high-value deals in July. UK-based working capital finance provider Greensill Capital raised $250 million in July. India-based loan management software provider NBFC Software raised $146 million.
The segment that held the second place in the funding race was InsurTech, which saw $596 million raised across 39 funding deals. A couple of major funding deals in this segment were: $90 million raised by MetroMile and $83 million raised by Next Insurance – both of these companies are based in the US.
WealthTech (Retail) placed third in the list of segments with the highest VC funding in July 2018, as the startups in this space raised $420 million across 24 deals. China-based company Snowball Finance raised $120 million in its Series D funding round. Here are some other noteworthy funds raised by startups in this segment: $80 million by the China-based Tiger Brokers, $50 million by the US-based Equidate, and $42 million by the China-based Wacai. Notably, China-based WealthTech (Retail) startups faired very well in the VC funding race in July 2018.
Payments and B2B FinTech were the other two among the top five FinTech segments in terms of funding value in July. Payments startups raised $346 million across 10 deals. The Payments funding charts were led by Toast, a US-based provider of POS/mPOS solutions, which raised $115 million in its Series D funding round in July. On the other hand, B2B FinTech startups raised $217 million across 10 deals. The key contributor to the global funding in this segment was US-based B2B FinTech software provider Gusto, which raised $140 million in its Series C funding round.
Outside of these top five segments; Remittance ($200 million), RegTech ($148 million), and AI/ML ($126 million) were some of the well-funded FinTech segments in July.