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WHAT IS CB INSIGHTS?
3
Contents
9 Q2’19 Financing Trends 61 Appendix:
Quarterly Deals & Dollars Regional Spotlight: Latin America
Regional Trends Major Markets Financing Trends
Fintech Unicorns Top Fintech Deals Q2’19
Most Active Fintech Investors Q2’18 – Q2’19
19 Q2’19 Fintech Sector Trends Methodology
Challenger Banks
Bank Tech
Regtech
Capital Markets
Wealth Management
Alternative Lending
Insurance
6
Summary of findings
Q2’19 fintech funding topped $8.3B, boosted by a record quarter of Every continent saw deals dip in Q2’19: North America, Asia, and Africa
$100M+ mega-rounds: Funding in Q2’19 got a boost from 25 $100M+ each saw 5-quarter lows for fintech deals. North America saw deals drop
rounds worth approximately $5B in funding. Mega-rounds were largely to 21% on a quarterly basis. However, funding to North American fintech
established, late-stage (Series D and Series E+) fintech startups. surged on the back of 15 mega-rounds in Q2’19 that also minted 3 of the 4
new US-based fintech unicorns.
Despite funding surge, Q2’19 VC-backed deal activity fell to a 10-quarter
low: Fintech deals in Q2’19 dropped 22% on a quarterly basis and declined India tops China in fintech deal activity for the first time ever: India saw
23% compared to the same quarter last year. Early-stage (seed/angel and 23 deals to VC-backed fintech companies, topping China by 8 deals. Fintech
Series A) deal share fell to 55%, a five-quarter low that contributed to the funding in China hit $375M, narrowly beating India, which saw $350M
overall dip in deals. invested.
Challenger banks continued to pick up multimillion-dollar rounds to fuel Latin America becomes one of the fastest-growing regions for fintech
international expansion and customer acquisition: Q2’19 saw challenger funding: LatAm topped both China and India for fintech funding in Q2’19,
banks raise $649M across 17 deals. Funding through the first month of with 23 deals worth $481M. Q3’19 has already seen a $400M mega-round
Q3’19 is on track to see another $1B+ deployed to challenger banks. Year- to Brazil-based digital challenger bank NuBank.
to-date funding in 2019 has already surpassed 2018’s record of $2.3B.
Asia deals and funding on track to fall below 2018 total: Asia saw 82 deals
There are 48 VC-backed fintech unicorns worth a combined $187B: worth $1.1B in Q2’19 — both close to historical lows.
Q2’19 saw seven new fintech unicorn births (Marqeta, Bill.com, Carta,
Lemonade, Checkout.com, Ivalua, and Liquid) and two in the first month of Note: This report focuses on equity rounds to VC-backed fintech companies. This report does not cover
companies funded solely by angels, private equity firms, or any debt, secondary, or line of credit
Q3’19 (Hippo and Judo). Valuations continued to grow in Q2’19 as many transactions. All data is sourced from CB Insights.
companies preferred to raise private financing over going public.
7
WHAT FINTECH COVERS
Tools to manage bills and track Sales & trading, analysis, and infrastructure
personal and/or credit accounts tools for financial institutions
PAYMENTS/ INSURANCE
BILLING
PERSONAL CAPITAL
FINANCE MARKETS
Audit, risk, and regulatory Investment and wealth management
compliance software platforms and analytics tools
WEALTH
REGTECH MANAGEMENT
MORTGAGE/
LENDING REAL ESTATE
Marketplace lending and alternative Mortgage lending, digitization,
underwriting platforms and financing platforms
8
GLOBAL FINTECH DEALS AND DOLLARS ON PACE TO FALL BELOW 2018’S RECORD
1,623
1,348
1,206
838
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
10
Despite a drop-off in deals, funding to VC-backed
fintech companies grew 24% QoQ in Q2’19
Quarterly global VC-backed fintech financing, Q2’15 – Q2’19 ($M)
$14,000
$8,456 $4,500
$2,974
$2,671
$2,321
$20,640
$4,971
$6,496
$5,517
$5,840
$4,913
$4,700
$6,186
$6,206
$7,450
$6,739
$8,344
$3,316
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Note: Q2’16 and Q2’18 spiked on the back of mega-round investments to Ant Financial including a record $14B deal in Q2’18 11
Europe maintained the lead over Asia in fintech
funding in H1’19
Global VC-backed fintech funding by continent, Q2’18 – Q2’19 ($M)
South America
$348.9
$216.1 $10.6 Australia
$33.9 $72 $47.6 $6.9
Africa
$25.4 $23 $11.2 $130.6
$61.3 $204.7 $1,550.6
$886.6 $76.9 Europe
$30.3
$943 $1,094.4
$832.7 Asia
$1,715.8
North America
$2,612 $959.5
$2,065.0
$1,967.3
204 199
190
17
18
174
15
159
16
134 12 South
127
America
12
108 110 10 10
119 107 Europe
10
87 8 8 8
8
8
82 Asia 7 5
4 Africa
6
4
4 Australia
4
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
9% 11% Other
12%
16% 17% 8%
5% 10% Late-Stage
6% 5%
Mid-Stage
20% 22%
20%
24% 24%
Early-Stage
11
7
6
5 5
4 4
3 3
1 1 1 1 1 1 1
48 FINTECH UNICORNS
VALUED, IN AGGREGATE, AT
$187 BILLION
16
48 fintech unicorns valued at $187B
Global VC-backed fintech companies with a private market valuation of $1B+ (8/8/19)
NORTH AMERICA EUROPE ASIA
UNITED KINGDOM GERMANY SWEDEN
UNITED STATES
CHINA
$22.5B Valuation $2B $3.5B Valuation $1.7B $2.55B $3.5B $3.5B $5.5B
$39.4B Valuation
$8B $7.6B $2B $1.1B $2.8B
$1.5B
$1.7B $4B
$4.8B $1B
$1B
SOUTH KOREA
$2B $1B (Q3’19)
INDIA
$2.7B $1.1B
$1B $1.8B
SOUTH AMERICA AUSTRALIA
BRAZIL AUSTRALIA $10B
$22.5B Valuation $2B $3.5B Valuation $1.7B $2.55B $3.5B $3.5B $5.5B
$39.4B Valuation
$8B $7.6B $2B $1.1B $2.8B
$1.5B
$1.7B $4B
$4.8B $1B
$1B
SOUTH KOREA
$2B $1B (Q3’19)
INDIA
$2.7B $1.1B
$1B $1.8B
SOUTH AMERICA AUSTRALIA
BRAZIL AUSTRALIA $10B
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#AhaCBI
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
20
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
21
The 1M+ fintech club by customer accounts
Since launch, these startups have added 230M+ combined accounts, (8/1/19) (accounts, M)
100
20
11 11 12
7 7 7.5
5.2 6 6
2.6 3.5 3.5 3.5 4 4 4 4
1 1 1.3 1.5 2 2
Uala Barrowell Cleo Qapital Fresh EBT Srtocktwits Monzo Dave.com Stash N26 MoneyLion Chime Rainist Transferwise Acorns Revolut Robinhood Circle ClearScore Sofi eTorro Toss NuBank Coinbase Credit Karma
Note: Chart excludes startups in China and India that have mass scale in part due to larger population sizes 22
Sources: Company press releases and publications
Digital-first “challenger banks” make up the biggest
cohort of the fastest growing fintech startups
Combined, challenger banks have tallied up 30M+ accounts, (8/1/19) (accounts, M) 100
20
11 11 12
7 7 7.5
5.2 6 6
2.6 3.5 3.5 3.5 4 4 4 4
1 1 1.3 1.5 2 2
Uala Barrowell Cleo Qapital Fresh EBT Srtocktwits Monzo Dave.com Stash N26 MoneyLion Chime Rainist Transferwise Acorns Revolut Robinhood Circle ClearScore Sofi eTorro Toss NuBank Coinbase Credit Karma
Note: Chart excludes startups in China and India that have mass scale in part due to larger population sizes 23
Sources: Company press releases and publications
Challenger bank funding surpasses 2018's record
year-end total, boosted by unicorn funding rounds
Global challenger banks VC-backed financing trends, Q1’18 – Q3’19YTD (8/1/19) ($M)
$1 ,100
30
27
26
$9 00 24 24 25
$7 00
17 20
16
$5 00
15
11
$3 00
10
$1 00
5
NuBank is a mobile-only “challenger bank” focused NuBank lets SMBs test new Bank
on the 100M+ unbanked and underbanked people in service for free
LatAm. NuBank reports supporting 12M customers July 16, 2019 |
across credit cards and NuCanta, the firm’s
checking account business launched in 2018
following regulatory approval for a charter.
In July 2019, NuBank raised a $400M Series F at a
$10B valuation. NuBank also opened the
company’s second headquarters in Mexico and
reportedly counts over 850 employees.
SELECT INVESTORS:
26
Mexico could be the next battleground for challenger
banks for local, global, and nontraditional players
Total Funding: Total Funding: Total Funding: Total Funding: May 2019: May 2019:
$7.4M $1.5M $0.08M $0.02M Opened Mexico HQ Launched bank
accounts for drivers
Focus: B2C pre-paid Focus: B2C perks and Focus: B2C debit Focus: B2C pre-paid Focus: Credit and debit Focus: B2B debit cards
debit cards and accounts reward debit cards cards for kids debit cards and accounts cards and bank accounts for employees
27
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
28
As time to market decreases, more fintech firms
are pushing into banking products
Timeline of digital banking products by launch date
USA
PARTNER BANK
COMPANY
PARTNER BANK
In April 2018, StoneCastle Partners Green Dot leverages its bank, Green BankMobile, Customers Bancorp’s Cross River Bank lets other
and Q2 Holdings announced the Dot Bank, to offer mobile banking digital division, grew initial distribution companies offer banking products
launch of Cambr, merging Q2’s capabilities to third-party providers. with students. It supports 2M accounts to its customers via its APIs.
digital platform CorePro and across 800 universities.
StoneCastle’s digital deposit network In July 2019, Green Dot launched an Cross River is actively developing
of 800+ community banks and in-house checking and high-yield Now, it wants to capitalize on BaaS. Per a BaaS product. In the interim, it is
relationships with banks of record. savings account that may Q2’19 earnings, total deposits to $890M, making strategic investments and
cannibalize its BaaS business. up 12.2% YoY, including $50M from the partnerships.
first white-label partnership.
Select Q2’19 Partner: Select Q2’19 Partner: Select Q2’19 Partner: Select Q2’19 Acquisition:
32
STARTUPS WANT TO CONNECT FINTECHS TO BANKS’ LEGACY INFRASTRUCTURE VIA APIS
Last Funding
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
34
Regtech deals and funding dropped off in Q2’19 to
just 19 deals worth $311M in funding
$500.0
Global regtech VC-backed fintech financing trends, Q2’18 – Q2’19 ($M) 35
30
29
$450.0
30
$400.0
26
25
$350.0
19
$300.0
20
$250.0 16
15
$200.0
$150.0
10
$100.0
$50.0
36
Infrastructure players commoditize consumer data
and will be the genesis of more fintech formation
Select Q2’19 deals and fintech partners
Lending Banking Student Housing Rent Payments Incumbent Payments Travel Budgeting
< +
Quovo Total Funding Pre-acquisition: $20.95M Figo Total Funding Pre-merger: $19M
Acquisition valuation: $200M Finreach Total Funding Pre-merger: Undisclosed
Fresh from a $250M Series C investment in Q4’18, Plaid acquired In Q1’19, Germany-based Figo and Finreach announced plans to merge.
US competitor Quovo in Q1’19. Quovo had an edge on Plaid in the Figo provides data aggregation services for financial institutions
US in wealth management where customers included robo-adviors and fintechs while Finreach specialized in digital account switching.
like Wealthfront and incumbents like Vanguard.
The deal is subject to approval from Germany’s Federal Financial
In Q2’19, Plaid formally launched in Europe, leveraging Quovo’s Supervision Authority (BaFin). Figo is a registered AISP and PISP under
existing Payment Initiation Service Provider (“PISP“) license with BaFin.
the UK’s FCA.
38
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
39
Capital markets tech topped $1.98B on the back of
mega-rounds from financial institutions in Q2’19
Global capital markets tech VC-backed fintech financing trends, Q2’18 – Q2’19 ($M)
65
$2,500.0 70
64
63
58 60
51
$2,000.0
50
$1,500.0
40
30
$1,000.0
20
$500.0
10
Q2’19 Funding
42
OVERHAULING 200,000 DESKTOPS COVERING 1,500 GLOBAL BANKS AND FIRMS
Q2’19 Funding
43
Startups disrupting IPOs and exchanges picked up
funding and regulatory approvals
+
Q2’19 Development: In May, the Long- Q2’19 Funding: $300M Series E // $1.7B Valuation Q2’19 Funding: $9.4M Series A
Term Stock Exchange (LTSE) gained
Select Investors: Andreessen Horowitz, Goldman Select Investors: Green Visor Capital
SEC approval to be an exchange.
Sachs PSI, Tiger Global, Lightspeed, Thrive
Following approval, the LTSE proposed OneChronos has been operating under the
listing standards to support long-term Carta’s cap table management products may gain radar to focus on building underlying
value creation for companies. additional traction as more startups stay private for algorithms for a new type of exchange using
longer. Some of its customers have also gone “Combinatorial Call Auctions”. Auctions
Last Funding: $18.7M Seed in July 2016
public while continuing to use the service, match buyers and sellers in a pure agency
Select Investors: Founders Fund underscoring the opportunity to reimagine the capacity. OneChronos is focusing on US
process of going public. CartaX, a secondary equities first. Downstream that could expand
market, is one option, building a retail brokerage or as investor demand for other asset classes,
a licensed rival exchange could be another. like options or fractional investments, pickup
44
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
45
Wealth tech deals and funding dropped to 35 deals
worth $421M, a 5-quarter low
Global wealth tech VC-backed deals and financing trends, Q2’18 – Q2’19 ($M)
57 56
$1 ,100 .0 60
53
$9 00.0 50
45
$7 00.0 40
35
$5 00.0 30
$3 00.0 20
$1 00.0 10
United Capital is a wealth management firm for high net worth individuals (HNI) with $1M—$15M in investable assets. United Capital has around
$25B assets under management (AUM), services 220 financial advisers, and operates across 95 offices.
Acquiring United Capital gives Goldman the technology prowess to service HNI customers that have less investable assets than typical for this
demographic, opening up a new segment of the market. In time, United Capital’s services could be added on top of Marcus, helping to keep assets
under Goldman Sachs’ management.
47
Advisor tech startups target financial planning with
highly customizable UX/UI and suite of products
Q2’19 Financing: $7.5M Series A Q2’19 Financing: $7.96M Series B Q2’19 Financing: $30M Series B
Focus: Multi-asset portfolio design and Focus: White-label wealth management Focus: Retirement investing and planning for
analytics with a suite of self-service tools suite for banks, credit unions, and advisors RIAs and employers with multiple integrations
Select Investors: Select Investors: Select Investors:
Illuminate Ventures, 8VC, CreditEase Operative Capital, Sorenson Ventures Primary Venture Partners, BNY Mellon, FinTech
Fintech Fund Collective, Point72 Ventures, Nationwide
Ventures, Allianz Life Ventures, Franklin
Resources, Goldman Sachs PSI
48
More wealth techs want to democratize access to
assets and diversification options for investors
STARTUP MUSIC GOLD FUTURES STRUCTURED
OPTIONS ROYALTIES NOTES
Q3’19 Funding: Q2’19 Funding: Q2’19 Funding: Q2’19 Funding: Q2’19 Funding:
$6M Series A $1M Undisclosed $6.27M Series A $10M Seed $12M Series B
Select Investors: Select Investors: Select Investors: Select Investors:
Social Leverage, Elefund Grotech Ventures, IDEA Citadel Securities, Jump Allianz Life Ventures,
CoVenture, The Weekend Fund Partners Q2’19 Funding: Capital, PEAK6 William Blair, Piton
Fund, Rucker Park Capital Undisclosed Seed Investment Management
49
Wealth tech is spreading to emerging markets with
growing middle classes like Latin America
Select wealth tech deals in Latin America in H1’19
BRAZIL BRAZIL MEXICO BRAZIL COLOMBIA
Last Funding: Last Funding: Last Funding: Last Funding: Last Funding:
$6.3M Series A Q1’19 Corporate Minority Q2’19 $0.06M Seed Q2’19 $0.26M Angel Q1’19 Undisclosed Seed Q1’19
50
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
51
Alternative lending funding neared $2.5B across
49 deals, both up QoQ in Q2’19
$4,000 Global alternative lending tech VC-backed fintech financing trends, Q2’18 – Q2’19 ($M) 80
$3,500 70
64 64
$3,000 60
50 49
$2,500 50
41
$2,000 40
$1,500 30
$1,000 20
$500 10
4/15/2019
SoFi introduces Stock Bits: Fractional SoFi releases SoFi Gig Economy ETF (GIGE)
share buying made easy and SoFi 50 ETF (SFYF)
7/8/2018 5/8/2019
53
Fintech firms are unbundling the paycheck through
employers to alleviate and prevent predatory debt
PAYROLL FLEXIBILITY DIRECT DEPOSITS
PTO LENDING
PRE-TAX SPENDING
FINANCIAL LITERACY
PAYDAY ADVANCE
B2C PAYDAY ADVANCE
EARNED-INCOME BENEFITS STUDENT LOAN PAYOFF
54
DISRUPTING PAYDAY THROUGH EMPLOYERS
Q2’19 Funding: $1.16M Series C in May’19 Q2’19 Funding: $32.8M Series C in April’18
Select Investors: Chiratae Ventures Select Investors: Blenheim Chalcot, Legal & General
India-based EarlySalary provides customers a small bridge loan UK-based Salary Finance offers installment loans that deducts loan
until their next paycheck and also works through employers to repayments directly from an employees Salary. In December 2018, it
provide salary-linked benefits. EarlySalary uses a social and online launched a payday advance service allowing employees to access
scoring technology-linked risk assessment to underwrite the loans. earned income.
The company reports 5M app downloads. In April 2019, SoFi co-founder Dan Macklin joined Salary Finance as
CEO of its US arm following its Series C investment.
55
B2C payday advance apps emerge as alternative
to payday loans or incurring overdraft fees
Q2’19 Funding: $110M Debt-II Q2’19 Funding: Undisclosed Series A Q1’19 Funding: $10.5M Series A
Valuation: $150M
Select Investors: Victory Park Capital, NYCA JP Select Investors: Canvas Ventures,
Morgan Partners, CreditEase Fintech Select Investors: Lightspeed, NYCA Unlock Venture Partners
Partners, Canaan Partners, DCM Ventures
Business model: Charges $1 per month to Business model: Fees vary by state starting
advance up to $100 per paycheck without a Business model: Charges $10 per month to at 15% per $100 up to $500 at a time
credit check or interest. advance up to $250 at a time without a without a credit check or interest.
credit check or interest.
Traction: 3.5 users, 1M+ installs on Google Play Traction: 50K+ loans processed,100K+
Traction: 300K+ members, 100K+ installs installs on Google Play
56
on Google Play
GLOBAL VC-BACKED
FINTECH Q2’2019
CAPITAL
MARKETS WEALTH
REGTECH
MANAGEMENT
DIGITAL INSURTECH
BANKING
MACRO SECTOR
TRENDS Q2’19
57
Insurtech deals and funding dipped in Q2’19, but
funding was still well above 2018 levels
$1,800
Global insurtech VC-backed fintech financing trends, Q2’18 – Q2’19 ($M)
70
$1,600
65
59
60
$1,400
48 49
$1,200
47 50
$1,000
40
$800
30
$600
20
$400
10
$200
Q2’19 Funding: $300M Series D Q2’19 Funding: $205M Series E Q2’19 Funding: $152M Series F
Select Investors: SoftBank, Allianz X, GV, Thrive Select Investors: SoftBank, Mubadala Select Investors: Softbank, Info Edge, True
Capital Ventures, Founders Fund, DFJ Growth North, Tiger Global
Business model: Licensed insurance carrier that Business model: Third-party administrator Business model: Digital insurance
keeps a fixed fee of customer’s home insurance of health insurance for self-funded aggregator that earns revenue from lead
premiums employers generation and policy sales
Traction: $58M in gross written premium in 2018 Traction: 50 corporate customers Traction: Largest insurance aggregator in
comprising 200,000 members India with 100M annual visitors 59
QUIZ-BASED LIFE INSURANCE
Last Funding
60
APPENDIX:
61
Geographic Trends
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#AhaCBI
LATIN AMERICA FINTECH VC-BACKED EQUITY FUNDING IN Q2’19:
$481 MILLION
ACROSS
23 DEALS
63
Latin America remains a top growth market for
fintech, and funding in Q2’19 saw a 6-quarter high
Latin America VC-backed fintech financing trends, Q1’18 – Q2’19 ($M)
38
31 30
27
22 23
64
Latin America fintech funding surpassed both China and
India and deals surpassed China, both a first for LatAm
Global VC-backed fintech funding by region (Latin America vs China vs India), Q2’18 – Q2’19, ($M)
79 $1,830
74
49 $1,121 *
&
31 30 32
29 23
22
27 27 23 $481
$398 $286 $350
23 $242 $375
15 $224 $231
17
$34 $72
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Q3'18 Q4'18 Q1'19 Q2'19
LatAm India China
*Ant Financials’ $14B investment removed for illustrative purposes 65
Fintech is driving startup growth in LatAm
Most well-funded VC-backed tech startups that have raised at least $1M of equity funding since 2014
$1.1 BILLION
ACROSS
82 DEALS
67
Asia fintech deals and funding will fall short of
2018’s record as a result of a pullback in China
Asia VC-backed fintech financing trends, 2015 – Q2’19 ($B)
567
412
348
272
216
*Spike in 2018 was driven by Ant Financials’ record breaking $14B round 68
India takes the lead
India overtakes China as a fintech deal hub in Q2’19
as the top market in
China vs. India VC-backed fintech deals, Q2’18 – Q2’19
Asia for fintech deals 79
$286
$231
$224
$1,453
$1,121
$1,830
Despite a strong quarter for
$254
$398
$350
$375
funding, India lost the lead over
China as Asia’s top funding hub. Q2'18 Q3'18 Q4'18 Q1'19 Q2'18
70
*Ant Financials’ $14B investment in Q2’18 is removed for illustrative purposes
US FINTECH VC-BACKED EQUITY FUNDING IN Q2’19:
$5.1 BILLION
ACROSS
143 DEALS
71
US fintech deals cooled down in the first six
months of 2019, but funding could top 2018’s high
US VC-backed fintech financing trends, 2015 – Q2’19 ($B)
738
652
613 603
322
174
lowest point since Q4’16. 161
$4.0
143
The quarter continued to see
mega-rounds go to scale ups like $3.0
$217.4
$1,647.9
$1,180.7
$2,226.5
$2,031.6
$2,918.9
$848.3
$578.6
$1,074
$1,474
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
74
EUROPE FINTECH VC-BACKED EQUITY FUNDING IN Q2’19:
$1.5 Billion
ACROSS
107 DEALS
75
Europe deals and funding on track to top new highs
on the back of mega-rounds to fuel market growth
Europe VC-backed fintech financing trends, 2015 – Q2’19 ($B)
409
400
279
240 217
159
152
134
127
108 110 107 Europe
119 Europe
87
82 Asia &
Asia
$1,715.8
$1,550.6
$2,065.3
$1,967.3
$1,094.4
$812.7
$886.6
$959.5
$2,612
$943
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q2'18 * Q3'18 Q4'18 Q1'19 Q2'19
*Ant Financials’ record breaking $14B round in Q2’18 was removed for illustrative purposes 78
Biggest Deals &
Most Active Fintech
Investors
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US fintech unicorns took 8 of 10 top deals in Q2’19
The top 10 deals to VC-backed fintech companies were all $200M+ mega-round investments
Deal Date //
Company HQ Amount Raised Total Disclosed Funding Select Investors Description
NY Apr’19 // $568M $1.02B Accel, capitalG, Sequoia Capital, T. Rowe Price, Robotic process automation software
($7.1B Valuation) Wellington Management, Coatue, Dragoneer, IVP,
Madrona Ventures
CA May’19 // $500M $2.69B Qatar Investment Authority, XL Innovate, Third Student lending
($4.8B Valuation) Point Ventures, Marketplace Funds
CA Apr’19 // $300M $1.03B Lightspeed, Ribbit Capital, Spark Capital, Thrive, POS consumer lending and alternative
($2.9B Valuation) Founders Fund, Wellington Management, Sound financing
Ventures, Fidelity Investments,
NY Apr’19 // $300M $480M Google Ventures, General Catalyst, SoftBank, Internet P+C digital insurer
($2B Valuation) Thrive, Allianz X
CA May’19 // $300M $444M Andreessen Horowitz, Thrive Goldman Sachs Cap table management for private markets
($1.7B Valuation) PSI, Menlo Ventures, Lightspeed, Meritech, Tiger
Global Management'
CA May’19 // $260M $376.3M Accel, capitalG, Sequoia Capital, T. Rowe Price, Open API payment card issuing platform
($2B Valuation) Wellington Management, Coatue, Dragoneer, IVP,
Madrona Ventures
Brazil Jun’19 // $231M $312.9M Qatar Investment Authority, XL Innovate, Third Alternative internet lender
($750M Valuation) Point Ventures, Marketplace Funds
UK May’19 // $230M $230M Lightspeed, Ribbit Capital, Spark Capital, Thrive, E-commerce payments facilitator
($2B Valuation) Founders Fund, Insight Partners, Wellington
Management, Sound Ventures, Fidelity
Investments,
CA Jun’19 // $205M $434M Google Ventures, General Catalyst, SoftBank, Tech-enabled health benefits
Thrive, Allianz X
UT Apr’19 // $200M $502.5M Andreessen Horowitz, Thrive Goldman Sachs B2B digital-first bank for expense
($700M Valuation) PSI, Menlo Ventures, Insight Partners, management
Lightspeed, Meritech, Tiger Global Management
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The most active fintech VCs from Q2’18 – Q2’19
By unique fintech company investments (new or follow-on)
Rank Investor Select Fintech Investments
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Methodology
CB Insights encourages you to review the methodology and definitions employed to better understand the numbers presented in this
report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights
directly. Additionally, if you feel your firm has been under-represented, please send an email to info@cbinsights.com and we can work
together to ensure your firm’s investment data is up to date.
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WHERE IS ALL THIS DATA FROM?