Lending

January 2018 FinTech Funding - Investment Platforms & Lending Startups Topped the Charts

MEDICI

The year 2018 started off on a great note for the global FinTech community. In January 2018, FinTech startups across the globe collectively raised $2.56 billion in funding. The US heavily dominated the funding charts with $1.51 billion, which was a whopping 59% of the global FinTech funding in the first month of 2018. China was a distant second with a 9.8% ($252.4 million) contribution, with India and France contributing 4.7% ($121 million) and 4.2% ($106.8 million) respectively.

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Investment platforms led the race with 20.28% contribution (worth $520.1 million) to the total funding in January. There were some large deals in this segment, with key players such as Cadre (raised $250 million), Wealthfront (raised $75 million), and Folio (raised $63.2 million) securing significant funding.

Several large banks were fairly keen on investing in startups from this segment. Visible Alpha, a US-based investment research technology firm raised $38 million from several investors, including large banks such as Goldman Sachs, Wells Fargo, Santander, and BNP Paribas. Goldman Sachs, in particular, was a part of the three large funding deals in this segment (Cadre, Folio, and Visible Alpha).

Lending, following up with the 2017 trend, was neck-to-neck with investment platforms, with 20.17% in contributions worth $517.3 million. InsurTech, BankTech, and Big Data & Analytics were the other three key segments that garnered substantial interest from investors.

In the Big Data & Analytics space, C3IOT raised $100 million, Trifacta also raised $48 million. In the cryptocurrency space, Ledger Wallet raised $75 million, whereas the crypto-trading platform Uphold raised $57.5 million.

Similarly, in the InsurTech space, six companies raised more than $20 million, with US-based Precision Hawk raising the highest amount of funding ($75 million). In the Banking Tech space, Alkami Technology, Defi Solutions, and Ncino raised $70 million, $55 million, and $51.5 million, respectively.

Diwakar Mandal

MEDICI

Diwakar is a FinTech enthusiast and an avid researcher who spends his time learning and writing about market trends, traction and disruptions in the industry. He has been active in the financial services consulting space for over four years.