August 14, 2018
Brett King and Jason Henrichs talk with their international guests about trends in FinTech and how these advances will spread across regions. Jason is joined by Amit Goel, Chief Strategy & Innovation Officer at MEDICI to discuss FinTech funding – in June 2018, FinTech startups around the world raised $3.764 billion worth of VC investments across 147 deals, which was a whopping 116% over May with some real surprises.
Amit shares that 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 2018. China was a close second with a 25% ($938.5 million raised across nine deals) contribution, with Hong Kong, India & Israel contributing 16.7% ($630 million), 7.5% ($281.7 million) & 3.4% ($129.4 million) respectively.
Among the segments, lending led the funding race in June 2018 with close to $790 million in funding across 31 deals. This was a staggering 230% MoM growth in the funding in this space compared May 2018.
While lending is continuously one of the most funded and represented segments in FinTech, AI/ML has been a surprising breakthrough in June 2018 – largely thanks to a single deal. AI/ML/NLP, the segment that held the second place in the funding race, saw $620 million being raised in a single funding deal by the Hong Kong-based SenseTime. This was SenseTime’s second-largest funding round in 2018, and the company is now valued at more than $4.5 billion.
Amit shares his perspective on the shift of dynamics and momentum of investments on a regional level, emphasizing the emergence of India and China as the hottest markets where a large number of new ventures is emerging, displacing traditionally leading the US. Some of the financial services experiences and technologies widely adopted today in Asia are far more superior and technologically advanced because historically, the region did not go through the same stages of technology adoption in the financial services industry and jumped straight to the adoption of the latest available technology.
The year 2018 overall is proving to be an explosive one for global FinTech investments: the global FinTech community has raised more than $61.86 billion in a combination of VC/PE investments and acquisitions/buyouts in H1 2018.
In terms of YoY growth, global FinTech VC/PE funding grew by a staggering 150%, from $12.25 billion in H1 2017 to $30.66 billion in H1 2018. Whereas in acquisitions and buyouts, the FinTech landscape saw 118 deals with the disclosed deal value of $31.2 billion. A total of 80 out of these 118 deals didn’t disclose the deal value and this highlights the fact that the intensity in FinTech acquisitions and buyouts in terms of deal value was even higher.