August 13, 2018
The year 2018 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.
In terms of VC/PE investments, the total of this year’s first half ($30.66 billion in H1 2018) has already handsomely surpassed the overall funding raised in the whole of 2017 ($23.7 billion).
China led the global VC/PE funding race with $16.42 billion worth of funding in Q1, 2018. However, a bulk of this was contributed by Ant Financial’s mammoth funding deal of $14 billion in June 2018, which took its valuation to be $150 billion. With this deal, the FinTech giant became the highest valued private tech startup, surpassing Uber. This huge deal by this Chinese payment behemoth has skewed the analysis on the side of Payments (segment-wise) and China (region-wise). If this funding round by Ant Financial isn’t considered, the US would lead the global VC/PE funding in FinTech with 47.53% share in terms of funding value.
Startups from the Americas raised over $8.34 billion. Payments was the most funded segment with over $14.8 billion in funding value – courtesy Ant Financial’s 14-billion-dollar funding round.
In terms of segments, Payments (of course, Ant Financial) and Big Data Analytics were the two segments who saw the biggest jump in the funding value over the course of one year from H1 2017 to H1 2018. While Payments grew by a staggering 478% from $2.56 billion in H1 2017 to $14.85 billion in H1 2018, Big Data Analytics grew by 841% from $86 million in H1 2017 to $810.6 million in H1 2018.
Some other segments which saw this kind of jump in the funding value (YoY) were – Neo-Banks (477%), Banking Tech (449%), and RegTech (360%).
Apart from Ant Financial, which raised an unprecedented amount of funding in June, there were many other startups that raised a big amount of VC/PE investments. Here are some of them: SenseTime ($600M in April, $630 M in June), Ping An One Connect ($650M), Credit Karma ($500M), CGTZ ($358M), RobinHood ($350M), TradeShift ($250M), etc.