October 29, 2018
The year 2018 continues to shine for global FinTech investments – in Q3 of 2018, the global FinTech community raised more than $22.66 billion in VC/PE investments and acquisitions/buyouts.
While the FinTech startups raised $11.36 billion worth of VC/PE funding in Q3 of 2018, the landscape also saw 62 acquisitions and buyouts with the disclosed deal value of $11.3 billion. Out of the 62 deals, 45 didn’t disclose the deal value – which highlights the fact that the intensity in FinTech acquisitions and buyouts was even higher in terms of deal value.
In terms of VC/PE investments, the total of this quarter’s funding value ($11.33 billion in Q3 2018) has almost equaled the overall funding raised in the first six months of 2017 ($12.25 billion).
The US led the global VC/PE funding race with $4 billion worth of funding in Q3, 2018, with a 35% share in terms of total funding value and 40% share in terms of the total number of deals.
China, which was home to Ant Financial’s gigantic funding in H1 2018, was placed second this quarter with over $1.89 billion in funding. Japan, the UK, and India were the other three among the top five countries in terms of VC/PE funding in Q3, 2018.
The VC/PE funding in Q3, 2018 was dominated by startups in the Payments, Lending, and the InsurTech segment, which collectively raised $7 billion, contributing over 61.5% of the total FinTech VC/PE funding in this period. Payment startups raised $2.65 billion, whereas Lending & InsurTech startups raised $2.4 billion and $1.96 billion worth of funding in Q3, 2018.
Blockchain was another segment which raised a good amount of funding ($1.3 billion) – however, a large chunk of it can be accredited to Bitmain’s $1 billion fund.
The third quarter saw some high-value deals, as there were 24 deals with more than $100 million in funding value. Here are some examples of the high-value deals that took place: Line ($1.3 B), Bitmain ($1 B), Thincats ($394 M), Oscar ($375 M), Paytm ($356 M), Greensil ($250 M), etc.