FinTech

Q3 2018 Global FinTech Investments Roundup

MEDICI

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).

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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.

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.