Enabling Technologies

May 2018 FinTech Funding – InsurTech, B2B FinTech & Blockchain Topped the Charts

MEDICI

In May 2018, FinTech startups across the globe raised $1.75 billion worth of VC investments across 113 deals. In terms of MoM growth, in May 2018, global FinTech funding witnessed a decline of 19.8% from the $2.18 billion raised in April 2018. The US continued to dominate the funding charts with $1.06 billion raised across 51 deals, contributing to 60% of the global FinTech funding (by value) in May. India was the distant second with a 14% ($249.8 million raised across 20 deals) contribution, with China, the UK, and Israel contributing 10% ($173.3 million), 8% ($134.4 million), and 2% ($33 million) respectively.

Revised-11th-chart.png

Among the segments, InsurTech led the funding race in May 2018 with $422.6 million in funding across only 22 deals. There was a 98% MoM growth in the funding in this space from April 2018. India-based aggregator PolicyBazaar raised the largest funding ($200 million) in this segment, followed by US-based Datavant ($40.5 million) and Germany-based SimpleSurance ($24 million).

The segment that held the second place in the funding race was B2B FinTech with $275 million raised across five funding deals. The US-based business commerce and supply chain marketplace company Tradeshift raised $250 million in a series E funding round led by incumbents such as HSBC, American Express, and Goldman Sachs. With this funding round, TradeShift became the latest FinTech unicorn.

Blockchain was third in the list of segments with highest FinTech funding in May as the startups in this space raised $256 million across 13 deals. Blockchain-based remittance provider Circle raised the highest funding ($110 million) in this segment. Other Blockchain startups which raised a good amount of funding were Paxos ($65 million) and Figure ($50 million) – both US-based players.

Lending and AI/ML/NLP were the two in the top FinTech segments in terms of funding value in May. While Lending has constantly been among the top-funded segments in 2018, AI/ML/NLP was the highest-funded segment in April. Lending startups raised $239 million across 19 deals, whereas AI/ML/NLP startups raised $113.4 million across four deals. While there was a marginal MoM growth of 8% in funding raised by Lending startups in May ‘18, as compared to April ’18; the AI/ML/NLP funding in May ’18 decreased by 81% MoM compared to March ’18.

Cybersecurity startups made a mark in the monthly funding race for the first time in 2018, with $106.5 million raised across six deals. The US-based IronNet led the charge in cybersecurity funding in May, as it raised $78 million in a series B round.

Another segment which garnered significant attention from investors in May was WealthTech (Retail). The startups in this space raised $73 million across just 12 deals. The UK-based MoneyFarm led the funding in this space with $53.1 million raised in a series B round.

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.