THE GLOBAL FINTECH REPORT: Q1'17
A comprehensive, data-driven look at global financial technology
investment trends, top deals, active investors, and corporate activity.
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9
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2010
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JUNE 26-28 | NEW YORK CITY, NY
Join CB Insights for an exclusive gathering of the world's
largest financial institutions, most highly-valued fintech
startups, and top venture investors.
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TABLE OF CONTENTS
# SECTION
7 Summary
9 Global Trends
27 North America
39 Europe
51 Asia
WHAT THIS REPORT COVERS
www.cbinsights.com
7
While fintech covers a diverse array of companies, business models, and technologies, companies generally fall into several key verticals, including:
Lending tech: Lending companies on the list include primarily peer-to-peer lending platforms as well as underwriter and lending platforms using machine
learning technologies and algorithms to assess creditworthiness.
Payments/billing tech: Payments and billing tech companies span from solutions to facilitate payments processing to payment card developers to
subscription billing software tools.
Personal finance/wealth management: Tech companies that help individuals manage their personal bills, accounts and/or credit, as well as manage their
personal assets and investments.
Money transfer/remittance: Money transfer companies include primarily peer-to-peer platforms to transfer money between individuals across countries.
Blockchain/bitcoin: Companies here span key software or technology firms in the distributed ledger space, ranging from bitcoin wallets to security
providers to sidechains.
Institutional/capital markets tech: Companies either providing tools to financial institutions such as banks, hedge funds, mutual funds, or other institutional
investors. These range from alternative trading systems to financial modeling and analysis software.
Equity crowdfunding: Platforms that allow a collection of individuals to provide monetary contributions for projects or companies provisioned in the form
of equity.
Insurance tech: Companies creating new underwriting, claims, distribution and brokerage platforms, enhanced customer experience offerings, and
software-as-a-service to help insurers deal with legacy IT issues.
SUMMARY OF FINDINGS
www.cbinsights.com
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VC-BACKED FINTECH COMPANIES RAISE $2.7B ACROSS 226 DEALS IN
Q1'17: Investment dollars to VC-backed fintech companies in
2017 is on pace to drop 18% from 2016, at the current run rate.
Global fintech deal activity could surpass 2016's all-time high if
the rest of the year sustains Q1'17's deal pace.
22 FINTECH UNICORNS GLOBALLY VALUED AT $77B: Q1'17 saw the
second most highly valued fintech unicorn in the US, SoFi, raise
$500M at a $4.5B valuation. China Rapid Finance, valued at $1B, filed
for IPO on the last day of Q1'17.
FINTECH MEGA-ROUNDS RISE SLIGHTLY IN Q1'17: There were seven
$50M+ financings to VC-backed fintech companies in Q1'17,
compared to 14 in the same quarter last year.
EUROPE ENDS MEGA-ROUND DROUGHT: In 2016, no European VC-
backed fintech company raised a financing round of $50M+. In the
first quarter of 2017, two companies, Atom and Funding Circle, raised
$100M+ each.
EUROPE FINTECH INVESTMENT SPIKES IN Q1'17: Europe saw a
burst of fintech investment in the first three months of 2017,
putting total funding dollars on pace to surpass $2.6B at the
current run rate. Europe fintech deal activity is on pace to top
2016's total by 57% if the current pace persists.
VC FUNDING TO EARLY-STAGE EUROPEAN FINTECHS GROWS 261%:
European VC-backed early-stage fintech companies raised
$195M across 50 deals in Q1 2017, a 72% quarterly deal jump.
The surge in early-stage fintech funding was led by $10M+
rounds to companies including solarisBank, ottonova,
ShapeShift, and Advanon.
US FINTECH IS ON PACE TO SEE DEALS, DOLLARS DROP IN 2017: If
the pace of investment in Q1'17 continues, funding to VC-backed
fintech funding would drop 20% from 2016's dollar total. US
fintech deal activity is on pace to fall below 2013 levels at the
current run rate.
Note: Report focuses on all 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 transactions. All data is sourced from CB
Insights. Page 62 details the rules and definitions we use.
In Q1 2017, global VC-backed fintech startups
raised
$2.7 BILLION
across
226 DEALS
www.cbinsights.com
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VC-BACKED FINTECH
FUNDING ON PACE TO
DROP FROM 2016 TOTAL
Investment dollars to VC-
backed fintech
companies in 2017 is on
pace to drop 18% from
2016, at the current run
rate.
Global fintech deal
activity could surpass
2016's high if the rest of
the year sustains Q1'17's
deal pace.
www.cbinsights.com
10
$2.5
$3.1
$7.9
$14.7
$13.1
$2.7
450
573
740
878
889
226
0
100
200
300
400
500
600
700
800
900
1000
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2012
2013
2014
2015
2016
2017
ANNUAL GLOBAL FINANCING TREND TO VC-BACKED
FINTECH COMPANIES
2012 - 2017 YTD (Q1'17)
Amount ($B)
Deals
GLOBAL VC-BACKED
FINTECH DOLLARS RISE
IN Q1'17 AFTER 3-
QUARTER DECLINE
Funding to global VC-
backed fintech
companies rose 33% on
a quarterly basis, but was
down 47% compared to
the same quarter last
year.
Global fintech deal
activity rose 12% from
Q4'16 to top 225 deals
over the three-month
period.
www.cbinsights.com
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$669 $582 $728 $560 $593 $610 $898 $1,015 $1,631 $1,734 $1,379 $3,113 $2,444 $5,240 $5,062 $1,974 $4,898 $3,707 $2,506 $2,037 $2,705 106
112
102
130
119
130
163 161 163
178
190
209 204
236
228
210
256
233
198 202
226
0
50
100
150
200
250
300
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
QUARTERLY GLOBAL FINANCING TRENDS TO VC-BACKED
FINTECH COMPANIES
Q1'12 - Q1'17
Amount ($M)
Deals
FINTECH SERIES A DEAL
SHARE MATCHES FIVE-
QUARTER LOW
Global fintech Series A
deal share fell from 25%
in Q4'16 to 20% in Q1'17.
Seed deal share
rebounded from Q4'16's
low to hit 34% in Q1'17.
www.cbinsights.com
12
45%
33%
34%
31%
34%
20%
24%
23%
25%
20%
14%
13%
14%
13%
15%
6%
11%
8%
6%
7%
4%
3%
4%
6%
3%
2%
1%
1%
3%
11%
15%
16%
18%
18%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
QUARTERLY GLOBAL FINTECH DEAL SHARE BY STAGE
Q1'16 - Q1'17
Seed / Angel
Series A Series B Series C Series D Series E+ Other
EARLY-STAGE FINTECH
DEALS AND DOLLARS
GROW IN Q1'17
After global early-stage
fintech funding fell to a 7-
quarter low in Q4'16,
seed and Series A
investment rebounded
slightly in Q1'17 to hit
$431M.
Early-stage fintech deals
rose 5% on a quarterly
basis.
www.cbinsights.com
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$156 $184 $163 $146 $204 $177 $280 $340 $529 $579 $358 $518 $380 $542 $434 $438 $544 $606 $487 $409 $431 65
69 68
82 79
86
108 111 105
118 120
131
121
139 136
128
164
133
113 113
122
0
20
40
60
80
100
120
140
160
180
$-
$100
$200
$300
$400
$500
$600
$700
QUARTERLY GLOBAL EARLY-STAGE FINANCING TRENDS
TO VC-BACKED FINTECH COMPANIES
Seed - Series A, Q1'12 - Q1'17
Amount ($M)
Deals
MEDIAN EARLY-STAGE
FINTECH DEAL SIZE FALLS
IN Q1'17
Median early-stage (Seed
Series A) deal size
among VC-backed
fintech companies in
Q1'17 fell after rising to
$2.7M in Q4'16. Median
early-stage deal size in
Q1'17 did however top
the $2.2M median in the
same quarter last year.
www.cbinsights.com
14
$2.2
$2.5
$2.6
$2.7
$2.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
GLOBAL EARLY-STAGE FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Early-Stage Deal Size ($M)
GLOBAL MEDIAN LATE-
STAGE DEAL SIZE SEES
LITTLE MOVEMENT IN
Q1'17
The median late-stage
fintech deal size in Q1'17
stood at $20.5M, just
slightly higher than
Q4'16's median.
www.cbinsights.com
15
$20.0
$30.0
$23.0
$20.3
$20.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
GLOBAL LATE-STAGE FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Late-Stage Deal Size ($M)
EUROPE SEES FINTECH
DEAL SPIKE IN Q1'17
Europe saw deal activity
to VC-backed fintech
companies rise a notable
74% on a quarterly basis
in Q1'17.
North America saw deals
to VC-backed fintech
startups drop 12%
compared to Q4'16 and
33% from the same
quarter last year.
www.cbinsights.com
16
146
115
107
111
98
49
53
42
38
42
53
52
39
42
73
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
FINTECH DEAL COUNT BY CONTINENT
Q1'16 - Q1'17
North America
Asia
Europe
EUROPE FINTECH
FUNDING RISES TO 5-
QUARTER HIGH
Amid upcoming EU
legislation that could
open the door for fintech
companies to challenge
incumbent banks, Europe
saw funding to VC-
backed fintech
companies jump 222%
on a quarterly basis.
After a dip in Q4'16, Asia
VC-backed fintech
funding rose 89% in
Q1'17.
www.cbinsights.com
17
$1.8
$1.7
$1.0
$1.3
$1.2
$2.7
$1.6
$1.3
$0.4
$0.8
$0.3
$0.4
$0.2
$0.2
$0.7
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
FINTECH INVESTMENT ($B) BY CONTINENT
Q1'16 - Q1'17
North America
Asia
Europe
500 STARTUPS AND NEA
ARE MOST ACTIVE
GLOBAL FINTECH
INVESTORS
500 Startups, New
Enterprise Associates,
and Index Ventures were
the most active VCs in
global fintech companies
over the last five
quarters. Ribbit Capital,
the financial services-
focused venture firm,
ranked fourth over the
period.
www.cbinsights.com
18
MOST ACTIVE VC INVESTORS IN GLOBAL FINTECH
COMPANIES
Q1'16 Q1'17
Rank
Investor
Rank
Investor
1
500 Startups
12
Bessemer Venture Partners
2
New Enterprise Associates
12
GV
3
Index Ventures
12
Nyca Partners
4
Ribbit Capital
12
Andreessen Horowitz
5
Union Square Ventures
12
Thrive Capital
5
Khosla Ventures
17
Santander InnoVentures
7
QED Investors
17
Valar Ventures
7
Bain Capital Ventures
17
Anthemis Group
7
General Catalyst
17
Founders Fund
7
SBI Investment
17
Spark Capital
11
SpeedInvest
CORPORATES
PARTICIPATE IN 1 OF
EVERY 3 FINTECH DEALS
IN Q1'17
As more financial
services incumbents
continue to launch
venture arms, strategic
participation in 1/3rd of
all global VC-backed
fintech deals in Q1'17 vs.
22% in the same quarter
last year.
www.cbinsights.com
19
22%
30%
29%
30%
33%
78%
70%
71%
70%
67%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
CVC PARTICIPATION IN GLOBAL DEALS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Corp / CVC Participation
Other Investors
EUROPE ENDS FINTECH
MEGA-ROUND DROUGHT
After seeing no $50M+
financings to VC-backed
fintech companies in
2016, Europe saw two
fintech companies notch
$100M+ deals in Q1'17.
www.cbinsights.com
20
9
7
5
3
2
4
4
4
2
3
0
0
0
0
2
1
0
0
1
0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
$50M+ FINANCINGS TO VC-BACKED FINTECH
COMPANIES
North America, Asia, Europe, South America, Q1'16 - Q1'17
North America
Asia
Europe
South America
22 FINTECH UNICORNS
GLOBALLY VALUED AT
$77B IN AGGREGATE
In Q1'17, SoFi raised
$500M at a $4.5B
valuation, while China
Rapid Finance filed for a
$100M IPO in the US.
China is also home to the
financial affiliates of
Alibaba and JD.com, last
valued at $60B and
$7.3B, respectively.
www.cbinsights.com
21
$18.5
$9.2
$8.0
$5.9
$4.5
$3.6 $3.5
$2.7 $2.4 $2.3 $2.3 $2.0 $1.9 $1.8 $1.6
$1.1 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0
GLOBAL VENTURE-BACKED FINTECH UNICORNS BY
VALUATION
$ Billion
Asia
North America
Europe
DEALS TO VC-BACKED
INSURANCE TECH
STARTUPS DROP IN Q1'17
Funding to venture
capital-backed insurance
tech companies fell 25%
on a quarterly basis in
Q1'17, while deal activity
dropped 30%.
www.cbinsights.com
22
$770
$387
$220
$257
$194
38
22
24
33
23
0
5
10
15
20
25
30
35
40
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
QUARTERLY FINANCING TREND TO VC-BACKED
INSURANCE TECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
FUNDING TO VC-BACKED
BLOCKCHAIN AND
BITCOIN COMPANIES
REBOUNDS
Investment to VC-backed
bitcoin and blockchain
startups rebounded in
Q1'17 to $113M after
dropping to $77M in
Q4'16. The largest deals
over the three-month
period included BitFury's
$30M Series C and
Veem's $24M Series B.
www.cbinsights.com
23
$153
$121
$131
$77
$113
24
18
16
19
23
0
5
10
15
20
25
30
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
QUARTERLY FINANCING TREND TO VC-BACKED
BLOCKCHAIN/BITCOIN COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
PAYMENTS TECH
FUNDING FALLS TO 5-
QUARTER LOW
Investment dollars to VC-
backed payments tech
companies (online and
mobile payments, point
of sales systems) fell
39% on a quarterly basis,
while deals rose for the
second consecutive
quarter.
www.cbinsights.com
24
$311
$445
$442
$495
$304
38
50
42
44
50
0
10
20
30
40
50
60
$-
$100
$200
$300
$400
$500
$600
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
QUARTERLY FINANCING TREND TO VC-BACKED
PAYMENTS TECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
MAJOR BANKS CONTINUE
TO INVEST IN FINTECH
STARTUPS
Santander, Goldman
Sachs, and Citi or their
venture arms have
participated in the
highest number of deals
to venture-backed fintech
companies over the last
five quarters.
www.cbinsights.com
25
9
8
8
6
5
3
3
3
2
2
2
1
1
1
1
1
MAJOR BANK INVESTMENTS TO VC-BACKED FINTECH
COMPANIES
Q1'16 - Q1'17
INSURERS CONTINUE TO
PILE INTO STRATEGIC
TECH INVESTING
Q1'17 marked the sixth
quarter in a row with
more than 20 private
tech investments by
(re)insurers or their
strategic venture units.
www.cbinsights.com
26
0
5
10
15
20
25
30
PRIVATE TECH INVESTMENTS BY (RE)INSURERS
Q1'12 - Q1'17
OUTSIDE OF CORE
MARKETS, LARGEST
DEALS CENTER IN BRAZIL
AND AUSTRALIA
Of the 10 largest deals
outside of Asia, Europe,
and North America over
the last five quarters, 8
took place in Australia or
Brazil.
www.cbinsights.com
27
NOTABLE FINTECH DEALS OUTSIDE CORE MARKETS
Q1'16 Q1'17
Company
Round
Country
Select investors
$80M
(Series D // Q4'16)
Brazil
Founders Fund, Kaszek Ventures, Sequoia
Capital, Tiger Global
$52M
(Series C // Q1'16)
Brazil
Founders Fund, Kaszek Ventures, Sequoia
Capital, Tiger Global
$30M*
(Venture // Q1'16)
Australia
Undisclosed investors
$19.4M
(Series B // Q1'17)
Brazil
IFC, Kaszek Ventures, Naspers, QED Investors,
Quona Capital, Redpoint e.ventures
$19.3M
(Series C // Q1'17)
Australia
AirTree Ventures
$19M
(Series C // Q2'16)
Australia
Australian Capital Equity, Consolidated Press
Holdings, News Corp Australia
$17.3M
(Series C // Q2'16)
Brazil
IFC, Kaszek Ventures, QED Investors, Ribbit Capital
$15M
(Series B // Q3'16)
South Africa
IFC, Omidyar Network, Accion, 4Di Capital, Lundin
Foundation
$10M
(Series A // Q2'16)
Australia
Cultivation Capital, Reinventure, Rampersand,
Carsales
$9M
(Series D // Q4'16)
New Zealand
Jasmine Social Investments, Movac, Square Peg
Capital
*Includes both debt and equity
In Q1 2017, US VC-backed fintech startups raised
$1.1 BILLION
across
90 DEALS
www.cbinsights.com
28
US FINTECH IS ON PACE
TO SEE DEALS, DOLLARS
DROP IN Q1'17
If the pace of investment
in Q1'17 continues,
funding to VC-backed
fintech companies would
drop 20% from 2016's
dollar total.
US fintech deal activity is
on pace to fall below
2013 levels at the current
run rate.
www.cbinsights.com
29
$1.7
$2.3
$5.3
$7.8
$5.5
$1.1
286
371
429
467
439
90
0
50
100
150
200
250
300
350
400
450
500
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
2012
2013
2014
2015
2016
2017
US ANNUAL GLOBAL FINANCING TREND TO VC-BACKED
FINTECH COMPANIES
2012 - 2017 YTD (Q1'17)
Amount ($B)
Deals
US FINTECH DEALS
REMAIN BELOW 100 FOR 3
STRAIGHT QUARTERS
US fintech deal activity
dropped 9% on a
quarterly basis, while
funding fell 8%.
www.cbinsights.com
30
$1.8
$1.6
$0.9
$1.2
$1.1
137
106
97
99
90
0
20
40
60
80
100
120
140
160
$-
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
US QUARTERLY FINANCING TRENDS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($B)
Deals
US FINTECH SERIES A
DEAL SHARE FALLS TO 5-
QUARTER LOW
Series A deal share fell
below 20% after taking
over 1/4th of all deals to
VC-backed fintech
companies in Q4'16.
Seed deal share in US
fintech did not see a
notable drop or rise from
Q4'16.
www.cbinsights.com
31
42%
26%
36%
23%
24%
22%
23%
21%
26%
19%
13%
9%
10%
15%
16%
5%
12%
9%
3%
6%
4%
6%
4%
6%
4%
2%
3%
1%
1%
4%
12%
21%
19%
25%
27%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
US QUARTERLY GLOBAL FINTECH DEAL SHARE BY STAGE
Q1'16 - Q1'17
Seed / Angel
Series A Series B Series C Series D Series E+ Other
US EARLY-STAGE FINTECH
DEALS, DOLLARS
REBOUND IN Q1'17
www.cbinsights.com
32
$544
$606
$487
$407
$431
163
133
113
112
122
0
20
40
60
80
100
120
140
160
180
$-
$100
$200
$300
$400
$500
$600
$700
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
US GLOBAL EARLY-STAGE FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
Seed - Series A, Q1'16 - Q1'17
Amount ($M)
Deals
US seed and Series A
funding to VC-backed
fintech companies rose
6% on a quarterly basis in
Q1'17.
After dropping for three
consecutive quarters,
early-stage deals in
Q1'17 increased 9% the
prior three months.
US EARLY-STAGE FINTECH
DEAL SIZE FALLS FROM
Q4'16 HIGH
Median early-stage
fintech deal size fell back
20% on a quarterly basis
in Q1'17 after rising to
$4M in Q4'16.
www.cbinsights.com
33
$2.5
$3.5
$2.2
$4.0
$3.2
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
US EARLY-STAGE FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Early-Stage Deal Size ($M)
LATE-STAGE US FINTECH
DEAL SIZE FALLS
SLIGHTLY IN Q4'16
Median late-stage fintech
deal size stood at
$25.5M in Q1'17,
compared to $26.5M in
Q4'16.
www.cbinsights.com
34
$25.0
$30.0
$21.9
$26.5
$25.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
US LATE-STAGE FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Late-Stage Deal Size ($M)
SOFI'S MEGA-ROUND
TOPS LARGEST US
FINTECH DEALS OF Q1'17
The top 10 US VC-
backed fintech deals in
Q1'17 raised $750M in
aggregate funding, two-
thirds of which came
from SoFi's $500M
financing led by Silver
Lake.
www.cbinsights.com
35
TOP 10 US FINTECH DEALS
Q1'17
Company
Round
State
Round Investors
$500M
(Series F)
California
Silver Lake, GPI Capital, Softbank Group
$50M
(Series D)
New York
Altimeter Capital, Scale Venture Partners,
Sequoia Capital, Four Rivers Group, Matrix
Partners, Greenspring Associates
$32.5M
(Series D)
California
Rakuten, Third Point, Khosla Ventures, First
Round Capital
$30M
(Series B)
California
IVP, Ribbit Capital, Female Founders Fund, Data
Collective, Collaborative Fund, Lowercase Capital
$27.6M
(Series D)
New York
Thiel Capital
$24M
(Series B)
California
NAB Ventures, SBI Investment, GV, Kleiner
Perkins, Silicon Valley Bank
$23.5M
(Series E)
New York
BlueCross Blue Shield Venture Partners, Andrew
Prozes
$22M
(Series A)
California
Matrix Partners, Ribbit Capital, March Capital
Partners, Felicis Ventures
$20.5M
(Series G)
California
True Ventures
$20M
(Series B)
Utah
Pelion Venture Partners, NEA, EPIC Ventures, Deep
Fork Capital
CORPORATE
PARTICIPATION IN US
FINTECH STAYS RANGE-
BOUND
Corporates participated
in close to 1/4th of all
deals to US VC-backed
fintech companies in
Q1'17.
www.cbinsights.com
36
21%
30%
25%
26%
24%
79%
70%
75%
74%
76%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
CVC PARTICIPATION IN US DEALS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Corp / CVC Participation
Other Investors
NEA, KHOSLA ARE MOST
ACTIVE US FINTECH
INVESTORS
New Enterprise
Associates was the most
active VC investor in US-
based fintech companies
over the last five quarters
followed by Khosla
Ventures. General
Catalyst, Union Square
Ventures, and Bain
Capital Ventures tied for
third.
www.cbinsights.com
37
MOST ACTIVE VC INVESTORS IN US FINTECH COMPANIES
Q1'16 Q1'17
Rank
Investor
Rank
Investor
1
New Enterprise Associates
9
Founders Fund
2
Khosla Ventures
9
Thrive Capital
3
General Catalyst Partners
9
SV Angel
3
Bain Capital Ventures
9
Citi Ventures
3
Union Square Ventures
9
Bessemer Venture Partners
6
Nyca Partners
9
Comcast Ventures
7
Andreessen Horowitz
9
Spark Capital
7
GV
CALIFORNIA FINTECH
FUNDING JUMPS, AS
DEALS DROP
In Q1'17, funding to VC-
backed fintech
companies in California
grew 39% on a quarterly
basis behind SoFi's
$500M financing led by
Silver Lake.
But fintech deals in the
state fell for the second
consecutive quarter, and
declined 28% from the
same quarter last year.
www.cbinsights.com
38
$596
$752
$515
$509
$710
54
41
51
42
39
0
10
20
30
40
50
60
$-
$100
$200
$300
$400
$500
$600
$700
$800
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
CALIFORNIA QUARTERLY FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
NEW YORK FINTECH
DEALS RISE FOR SECOND
STRAIGHT QUARTER
Fintech funding to VC-
backed New York
companies fell 35% on a
quarterly basis.
New York fintech deal
activity rose 26% from
Q4'16, but registered 33%
below the same quarter
last year, which included
large financings to Oscar
and Betterment.
www.cbinsights.com
39
$868
$238
$153
$390
$253
36
30
15
19
24
0
5
10
15
20
25
30
35
40
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
NEW YORK QUARTERLY FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
In Q1 2017, European VC-backed fintech startups
raised
$667 MILLION
across
73 DEALS
www.cbinsights.com
40
EUROPE FINTECH
INVESTMENT IS ON TRACK
FOR A RECORD YEAR
Europe saw a burst of
fintech investment in the
first three months of 2017,
putting total funding
dollars on pace to surpass
$2.6B at the current run
rate.
Europe fintech deal
activity is on pace to top
2016's total by 57% if the
current pace persists.
www.cbinsights.com
41
$0.3
$0.3
$1.2
$1.7
$1.1
$0.7
79
83
125
170
186
73
0
20
40
60
80
100
120
140
160
180
200
$-
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
2012
2013
2014
2015
2016
2017
EUROPE ANNUAL GLOBAL FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
2012 - 2017 YTD (Q1'17)
Amount ($B)
Deals
EUROPEAN FINTECH
DEALS, FUNDING LEAP
AHEAD IN Q1'17
European VC-backed
fintech companies raised
$667M across 73 deals
in Q1'17.
Compared to the same
quarter last year, Europe
fintech funding in Q1'17
rose 121%, while deals
jumped 38%.
www.cbinsights.com
42
$0.3
$0.4
$0.2
$0.2
$0.7
53
52
39
42
73
0
10
20
30
40
50
60
70
80
$-
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
$0.8
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
EUROPE QUARTERLY FINANCING TRENDS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($B)
Deals
EARLY-STAGE TAKES
OVER 2/3RDS OF EUROPE
FINTECH DEALS FOR
THIRD STRAIGHT
QUARTER
In Q1'17, seed deal share
stayed at 45%+ for the
third consecutive quarter.
After rising to 14% in
Q4'16, Series B deal
share fell to just 5% of all
fintech deals in Europe in
Q1'17.
www.cbinsights.com
43
47%
37%
49%
45%
45%
17%
25%
23%
24%
23%
11%
13%
10%
14%
5%
9%
10%
5%
7%
8%
4%
2%
5%
2%
1%
4%
11%
13%
8%
7%
12%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
EUROPE QUARTERLY GLOBAL FINTECH DEAL SHARE BY
STAGE
Q1'16 - Q1'17
Seed / Angel
Series A Series B Series C Series D Series E+ Other
VC FUNDING TO EARLY-
STAGE EUROPEAN
FINTECHS GROWS 261%
European VC-backed
early-stage fintech
companies raised $195M
across 50 deals in Q1
2017, a 72% quarterly
deal jump.
The surge in early-stage
fintech funding was led
by $10M+ rounds to
companies including
solarisBank, ottonova,
Advanon, and
ShapeShfit.
www.cbinsights.com
44
$85
$108
$119
$54
$195
33
32
28
29
50
0
10
20
30
40
50
60
$-
$50
$100
$150
$200
$250
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
EUROPE GLOBAL EARLY-STAGE FINANCING TREND TO
VC-BACKED FINTECH COMPANIES
Seed - Series A, Q1'16 - Q1'17
Amount ($M)
Deals
MEDIAN EUROPEAN
EARLY-STAGE DEAL SIZE
RISES AFTER TWO
QUARTER DROP
Early-stage median
fintech deal size in
Europe rose to $2.5M
after falling for two
consecutive quarters
from $3.4M in Q2'16.
www.cbinsights.com
45
$2.4
$3.4
$3.0
$2.2
$2.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
EUROPEAN EARLY-STAGE FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Early-Stage Deal Size ($M)
OVERALL MEDIAN DEAL
SIZE RISES TO $4.6M IN
Q1'17
Overall European median
fintech deal size rose
53% on a quarterly basis
as Europe saw 10 $20M+
deals over the three-
month period.
www.cbinsights.com
46
$3.0
$5.1
$4.4
$3.0
$4.6
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
EUROPEAN OVERALL FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Overall Deal Size ($M)
EUROPE NOTCHES FIRST
$100M+ VC-BACKED
FINTECH DEALS
The top 10 deals in Q1'17
to European venture-
backed fintech startups
raised more than $405M
in total funding.
www.cbinsights.com
47
TOP 10 EUROPEAN FINTECH DEALS
Q1'17
Company
Round
Country
Round Investors
$102M
(Series C)
United Kingdom
BBVA, Toscafund Asset Management,
Woodford Investment Management
$100M
(Series F)
United Kingdom
Accel, Baillie Gifford & Co., DST, Index Ventures,
Ribbit Capital, Temasek, Union Square Ventures
$32M
(Series C)
Germany
Thrive Capital, Ribbit Capital, Index Ventures
$30M
(Series C)
Netherlands
China Credit Limited Holdings
$28M
(Series A)
Germany
Arvato Financial Solutions, FinLeap, SBI
Investment, Yabeo Capital
$25M
(Series D)
United Kingdom
Rakuten Ventures, GV, Anthemis Group, Notion
Capital, Sapphire Ventures
$24.5M
(Series B)
United Kingdom
Thrive Capital, Orange Digital Ventures, Passion
Capital
$22.9M
(Series B)
Poland
Capitec Bank
$21.2M
(Series C-II)
Germany
Rakuten Ventures, Allianz Ventures, Rheingau
Ventures, Route 66 Ventures
$20M
(Private Equity)
United Kingdom Target Global, Viola Private Equity,
CVC DEAL ACTIVITY IN
EUROPEAN FINTECH
CLIMBS TO 5-QUARTER
HIGH
In Q1'16, investments to
VC-backed fintech
companies in Europe
involving strategic
investors stood at 17%.
The same quarter this
year, strategics have
increased their
involvement to 37% of all
Europe fintech deals.
www.cbinsights.com
48
17%
23%
26%
36%
37%
83%
77%
74%
64%
63%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
CVC PARTICIPATION IN EUROPE DEALS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Corp / CVC Participation
Other Investors
INDEX VENTURES,
SPEEDINVEST ARE MOST
ACTIVE VCS IN EUROPEAN
FINTECH COMPANIES
Over the last five
quarters, Index Ventures
has made new or follow-
on investments to
European fintech
companies including
Bonify, Raisin, and
Silverfin.
www.cbinsights.com
49
MOST ACTIVE VC INVESTORS IN EUROPEAN FINTECH
COMPANIES
Q1'16 Q1'17
Rank
Investor
Rank
Investor
1
Index Ventures
7
Ribbit Capital
1
SpeedInvest
7
Octopus Ventures
3
Holtzbrinck Ventures
7
NFT Ventures
3
Global Founders Capital
7
Earlybird Venture Capital
3
Dieter von Holtzbrinck Ventures
7
German Startups Group
3
Seedcamp
7
SEED Capital
UK FINTECH FUNDING
JUMPS ON THE BACK OF
$100M+ DEALS
UK VC-backed fintech
companies raised $328M
in Q1'17, with $200M+
coming from a pair of
investments to Atom
Bank and Funding Circle.
Fintech deal activity in
the UK rose 57% on a
quarterly basis.
www.cbinsights.com
50
$121
$124
$78
$121
$328
17
15
12
14
22
0
5
10
15
20
25
$-
$50
$100
$150
$200
$250
$300
$350
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
UK QUARTERLY FINANCING TREND TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
GERMAN FINTECH DEALS
REBOUND TO 5-QUARTER
HIGH
German VC-backed
fintech deals rose 143%
in Q1'17 on a quarterly
basis, while funding grew
341% driven by
investments to
companies including
Raisin and solarisBank.
www.cbinsights.com
51
$107
$175
$105
$34
$150
15
15
11
7
17
0
2
4
6
8
10
12
14
16
18
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
GERMANY QUARTERLY FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
In Q1 2017, Asian VC-backed fintech startups
raised
$826 MILLION
across
42 DEALS
www.cbinsights.com
52
ASIA FINTECH DEALS ON
PACE TO DROP IN 2017
At the current run rate,
Asia could see 8% fewer
deals in 2017 to VC-
backed fintech
companies than in 2016.
www.cbinsights.com
53
$0.3
$0.3
$1.1
$4.8
$5.9
$0.8
58
73
134
173
182
42
0
20
40
60
80
100
120
140
160
180
200
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2012
2013
2014
2015
2016
2017
ASIA ANNUAL GLOBAL FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
2012 - 2017 YTD (Q1'17)
Amount ($B)
Deals
ASIAN FINTECH FUNDING
RISES AFTER 3-QUARTER
DROP
VC-backed fintech
companies in Asia saw
funding double in Q1'17
to $826M.
Deals rose slightly on a
quarterly basis, but stood
14% lower than the same
quarter last year.
www.cbinsights.com
54
$2.7
$1.6
$1.3
$0.4
$0.8
49
53
42
38
42
0
10
20
30
40
50
60
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
ASIA QUARTERLY FINANCING TRENDS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($B)
Deals
FINTECH SERIES B DEAL
SHARE MATCHES 5-
QUARTER HIGH IN Q1'17
Series A deal share to
VC-backed fintech
companies in Asia fell to
a five-quarter low, while
Series B deal share rose
from 16% in Q4'16 to
31% in the first three
months of 2017.
www.cbinsights.com
55
45%
36%
17%
29%
31%
20%
23%
26%
21%
12%
24%
23%
31%
16%
31%
2%
9%
7%
16%
10%
2%
8%
2%
2%
2%
4%
9%
17%
11%
14%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
ASIA QUARTERLY GLOBAL FINTECH DEAL SHARE BY
STAGE
Q1'16 - Q1'17
Seed / Angel
Series A Series B Series C Series D Series E+ Other
ASIAN EARLY-STAGE
FINANCING STAYS LEVEL
IN Q1'17
Asian VC-backed early-
stage fintech companies
saw $62M across 18
deals in the first three
months of 2017, with
little deviation from
Q4'16's total.
www.cbinsights.com
56
$51
$118
$111
$66
$62
32
31
18
19
18
0
5
10
15
20
25
30
35
$-
$20
$40
$60
$80
$100
$120
$140
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
ASIA GLOBAL EARLY-STAGE FINANCING TREND TO VC-
BACKED FINTECH COMPANIES
Seed - Series A, Q1'16 - Q1'17
Amount ($M)
Deals
ASIAN FINTECH EARLY-
STAGE DEAL SIZE
MATCHES 5-QUARTER
LOW
Q1'17 saw early-stage
median deal size drop
57% on a quarterly basis,
after rising for three
consecutive quarters.
www.cbinsights.com
57
$1.5
$2.0
$3.3
$3.5
$1.5
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
ASIA EARLY-STAGE FINTECH DEAL SIZE
Q1'16 - Q1'17
Median Early-Stage Deal Size ($M)
ASIA'S TOP Q1'17 DEALS
CENTER IN CHINA
7 of the top 10 Q1'17
deals to venture-backed
fintech companies in
Asia went to China-based
companies. South Korea
payments startup Viva
Republica and
Indonesian P2P lending
platform Amartha also
raised $30M+ financings
in Q1'17.
www.cbinsights.com
58
TOP 10 ASIAN FINTECH DEALS
Q1'17
Company
Round
Country
Select investors
$72M
(Series B)
China
360jinrong, Addor Capital, CreditEase, Matrix
Partners China, Youjin Capital
$68M
(Series C)
China
China International Capital Corp., Golden Brick
Capital, GX Capital, Sinovation Ventures
$48M
(Series C)
South Korea
Goodwater Capital, Altos Ventures, Bessemer
Venture Partners, PayPal, Partech Ventures
$33.4M
(Series C)
China
Liaison Technologies
$30M
(Series A)
Indonesia
BEENEXT, Mandiri Capital
$29M
(Series B)
China
China Renaissance Capital Investment, PAG,
Sequoia Capital China
$16M
(Series A)
Japan
DCM Ventures, Draper Nexus, JAFCO, Mitsui
Sumitomo Insurance Venture Capital, Monex
Ventures, Rakuten Ventures
$14.6M
(Series B)
China
CITIC Capital Private Equity, Yonghua Capital
$14.6M
(Series B-II)
China
China Growth Capital, ChinaEquity Group, Frees
Fund, Shunwei Capital Partners
$14.5M
(Series B)
China
Bertelsmann Asia Investments, Future Capital
Discovery Fund, Shunwei Capital, Sinolink
CORPORATES
PARTICIPATE IN HALF OF
ASIAN FINTECH DEALS
Corporate participation in
Asian VC-backed fintech
deals rebounded to 50%
after falling to 42% in
Q4'16.
Strategic involvement in
Asia's Q1'17 fintech
financing far outpaced
the same quarter last
year when corporates
participated in 31% of all
deals.
www.cbinsights.com
59
31%
40%
50%
42%
50%
69%
60%
50%
58%
50%
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
CVC PARTICIPATION IN ASIA DEALS TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Corp / CVC Participation
Other Investors
500 STARTUPS IS MOST
ACTIVE VC IN ASIAN
FINTECH STARTUPS
Over the past five
quarters, 500 Startups
made investments to
fintech startups in Asia
including BeeWise, First
Circle, and Credit Engine.
www.cbinsights.com
60
MOST ACTIVE VC INVESTORS IN ASIAN FINTECH
COMPANIES
Rank
Investor
Rank
Investor
1
500 Startups
5
Kalaari Capital
2
SBI Investment
5
BEENEXT
2
East Ventures
5
IDG Capital Partners
4
Sequoia Capital India
5
Source Code Capital
5
Matrix Partners China
2016
CHINA SEES $661M TO
VC-BACKED FINTECH
COMPANIES IN Q1'17
Deal activity to VC-
backed fintech
companies doubled on a
quarterly basis in Q1'17,
while funding rose 149%.
www.cbinsights.com
61
$2.4
$1.3
$1.1
$0.3
$0.7
15
17
14
7
14
0
2
4
6
8
10
12
14
16
18
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
CHINA QUARTERLY FINANCING TREND TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($B)
Deals
INDIA FINTECH FUNDING
DROPS TO FIVE-QUARTER
LOW
Q1'17 saw both
investment and deal
activity to VC-backed
fintech companies drop
to 5-quarter lows.
In April, SoftBank was
reportedly considering a
$1B+ investment in
Paytm owner One97
Communications.
www.cbinsights.com
62
$73
$157
$127
$35
$15
16
16
9
12
7
0
2
4
6
8
10
12
14
16
18
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
INDIA QUARTERLY FINANCING TREND TO VC-BACKED
FINTECH COMPANIES
Q1'16 - Q1'17
Amount ($M)
Deals
METHODOLOGY
www.cbinsights.com
63
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.
What is included:
What is excluded:
Equity financings into emerging fintech companies. Fundings must be put into
VC-backed companies, which are defined as companies who have received
funding at any point from either: venture capital firms, corporate venture groups
or super angel investors.
Fundings of only private companies. Funding rounds raised by public companies
of any kind on any exchange (including Pink Sheets) are excluded from our
numbers even if they received investment by a venture firm(s). Note: For the
purposes of this analysis, JD.com's finance arm JD Finance and its $1B financing
were included in the data per its investment from Sequoia Capital China, in Q1
2016.
Only includes the investment made in the quarter for tranched investments. If a
company does a second closing of its Series B round for $5M and previously had
closed $2M in a prior quarter, only the $5M is reflected in our results.
Round numbers reflect what has closed not what is intended. If a company
indicates the closing of $5M out of a desired raise of $15M, our numbers reflect
only the amount which has closed.
Only verifiable fundings are included. Fundings are verified via
(1) various federal and state regulatory filings; (2) direct confirmation with firm or
investor; or (3) press release.
Previous quarterly VC reports issued by CBI have exclusively included VC-backed
rounds. In this report, any rounds raised by VC-backed companies are included,
with the exceptions listed.
No contingent funding. If a company receives a commitment for $20M subject to
hitting certain milestones but first gets $8M, only the $8M is included in our data.
No business development / R&D arrangements, whether transferable into equity now,
later or never. If a company signs a $300M R&D partnership with a larger corporation,
this is not equity financing nor is it from venture capital firms. As a result, it is not
included.
No buyouts, consolidations and recapitalizations. All three of these transaction types
are commonly employed by private equity firms and are tracked by CB Insights.
However, they are excluded for the purposes of this report.
No private placements. These investments, also known as PIPEs (Private Investment
in Public Equities), are excluded even if made by a venture capital firm(s).
No debt / loans of any kind (except convertible notes). Venture debt or any kind of
debt / loan issued to emerging, startup companies, even if included as an additional
part of an equity financing is not included. If a company receives $3M with $2M from
venture investors and $1M in debt, only the $2M is included in these statistics.
No government funding. Grants, loan or equity financings by the federal government,
state agencies or public-private partnerships to emerging, startup companies are not
included.
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