Fintech Anything by Alternative by GP Bullhound

Over the past three years, global venture capital investment into Fintech has risen by 4.7x to $13.6 billion in 2016 and these companies are now creating significant shareholder value: there are now 39 Fintech companies valued at over a billion dollars.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
GP Bullhound Company FINTECH Total fund raise GP Bullhound Research Bullhound Research Source
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
GP Bullhound Company FINTECH Total fund raise GP Bullhound Research Bullhound Research Source
<p>Important disclosures appear at the back of this report 
GP Bullhound LLP is authorised and regulated by the Financial Conduct Authority 
GP Bullhound Inc is a member of FINRA
Dealmakers in Technology
Anything but alternative
FINTECH
02 Executive Summary
 
03 THE VIEW: Claudio Alvarez and Carl Wessberg
04 Key Trends
 
06 Funding for Fintech remains resilient
 
08 Alternative Finance leading the way
 
10 China cements position as a leader
16 Alternative Finance
 
19 EXPERT VIEW: Christian Faes - LendInvest
20 Digital Payments
 
23 EXPERT VIEW: Jacob de Geer - iZettle
 
24 EXPERT VIEW: David Fock - Klarna
 
25 EXPERT VIEW: Oscar Berglund - Trustly
26 Data Software
29 Insurtech
32 Digital Banking
 
35 EXPERT VIEW: Rishi Kholsa - OakNorth Bank
36 Asset Management
40 Methodology
CONTENTS
EXECUTIVE SUMMARY
2
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
Claudio Alvarez 
Director
The reasons for the strong investment appetite are 
clear: using technology and data, Fintech firms in 
developed markets are providing financial services 
and solutions in more efficient and streamlined 
ways to fill the gap that legacy institutions have left. 
Meanwhile, in emerging markets, Fintech firms are 
building a world-class, digital-first financial services 
infrastructure. 
Fintech companies are now firmly established in the 
mainstream of the financial services market. Indeed, 
it is a point of debate how symbiotic the relationship 
between Fintech and traditional financial institutions 
is. However, we can be certain that there is more to 
come from the Fintech sector as it leverages the next 
wave of innovation and we expect investment into 
the sector to remain resilient. 
Venture Capital investment into Fintech globally 
remained robust in 2016 despite a challenging 
political and economic backdrop, underlining 
the long-term attractiveness of the sector. Across 
Alternative Finance, Digital Payments, Data & 
Software, Insurtech, Digital Banking and Asset 
Management, there are now some 39 billion-dollar 
Fintech companies and there is a raft of companies  
hot on their heels. 
The Fintech sector is a tale of two regions. Explosive 
growth in China stems from the opportunities created 
by under-banked consumer and SME markets, 
strong growth in e-commerce and a supportive 
regulatory environment. However, in Europe, with its 
stronger traditional financial services sector, a focus 
on disruption is giving way to collaboration and 
enablement and a “flight to class” has emerged 
amongst investors targeting more mature segments, 
such as alternative lending and payments. Category 
winners are already emerging and consolidation is 
starting to pick up pace as investors become more 
selective, and established players look to M&A to 
accelerate growth.
A clear set of messages emerges for European Fintech 
from our guest experts included in this research. 
First, there remains a significant market opportunity 
focused on improving the user experience of financial 
services. The lines between sectors (lending, banking, 
payments, wealth management) are also starting 
to blur from the consumer’s point of view, as digital 
becomes the dominant channel for interaction. 
Second, Europe is able to leverage hubs of talent, 
strong financial services ecosystems and its regulatory 
environment. Finally, new waves of innovation are on 
their way to provide even greater value. 
At GP Bullhound, we work closely with many of the 
best companies and investors in the Fintech sector. 
We are passionate about building more category 
leaders across Europe and know that Fintech is a 
sector that will continue to shape the way financial 
institutions deliver services to consumers.  
Over the past three years, global venture capital investment into Fintech has risen by 4.7x 
to $13.6 billion in 2016 and these companies are now creating significant shareholder 
value: there are now 39 Fintech companies valued at over a billion dollars.
 Carl Wessberg 
Director
3
FINTECH: ANYTHING BUT ALTERNATIVE
THE VIEW
From GP Bullhound
KEY
TRENDS
KEY TRENDS
4
KEY
TRENDS
5
FINTECH: ANYTHING BUT ALTERNATIVE
GP Bullhound Research 
Source: KPMG Venture Pulse, Pitchbook
Funding for Fintech  
remains resilient
The record-setting $4.5 billion funding of China’s Ant 
Financial was a major contributor to the global tally. 
However, Fintech funding in Europe remained robust 
at $1.4 billion and the number of companies funded 
hit a seven-year high at 247. Investors continue to 
see opportunities in Europe’s disparate financing 
ecosystem as well as London’s role within the global 
Fintech sector, which remains considerable, despite 
the uncertainties stemming from Brexit. 
Within Europe, the UK and Germany share the 
limelight, with nine of the top ten Fintech VC rounds 
being completed in the two countries. However, the 
UK continues to lead the way with three companies 
valued at over $1 billion: Funding Circle, Paysafe and 
Transferwise, and we do not see that changing, given 
London’s prominence in financial services. 
We expect 2017 to be another year of resilience for 
Fintech funding in Europe and we have already seen 
several high-profile capital raises announced: Funding 
Circle, iZettle, Atom Bank and Monzo. We think these 
will set the pace for the rest of the year. We expect 
VC investors to continue to back established players 
and also to increase investment in new technologies, 
such as Artificial Intelligence and Digital Ledger, and 
new business models, such as Digital Banking.
KEY TRENDS
Investor appetite for Fintech remained strong in 2016, despite a  
backdrop of political uncertainty in Europe and the US and a perceived 
slowdown in global economic activity. Venture capital investment in 
2016 totalled $13.6 billion, up 7 per cent on the stellar prior year. 
However, the number of investee companies fell by 100 to 840, 
continuing the trend towards larger fundraisings. 
$0.6bnQ1
$0.6bnQ2
$0.4bnQ3
$0.5bnQ4
$0.7bnQ1
$0.6bnQ2
$0.6bnQ3
$0.6bnQ4
$0.6bnQ1
$0.6bnQ2
$0.9bnQ3
$1.0bnQ4
$1.6bnQ1
$1.7bnQ2
$1.3bnQ3
$3.1bnQ4
$2.4bnQ1
$5.2bnQ2
$5.0bnQ3
$1.9bnQ4
$4.9bnQ1
$2.9bnQ2
$2.4bnQ3 Q4
2011
2012
2013
2014
2015
2016
Global - Quarterly VC-backed fintech investment activity (2011 – 2016)
Total Funding ($m)
Total # of Transactions
88
88
65
71
104 110 101
132
114
128
159 159 160
171
185
202 194
224
211
192
231
203
178
210
$3.4bnGlobal - Quarterly VC-backed Fintech  
investment activity (2011 - 2016)
6
7
FINTECH: ANYTHING BUT ALTERNATIVE
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Total Deal Value ($bn)
0
100
200
300
400
500
600
Number of transactionsVenture investment in fintech by region (2014 – 2016)
Europe
US
Asia
2014
2015 
2016
Size of bubble indicates total deal value
0.8 
1.4 
 1.9  
 2.9  
 6.7  
 12.7  
 13.6  
119 
300 
419 
627 
842 
942 
840 
2010 
2011 
2012 
2013 
2014 
2015 
2016 
 
Capital Invested 
# of Transactions 
Global venture investment in fintech companies 
(USD $bn) 
Global venture investment in  
Fintech companies (USD $bn)
Venture investment in Fintech  
by region (2014 - 2016)
GP Bullhound Research
Source: Morgan Stanley; LendAcademy *Estimated
Of the 39 Fintech companies valued at $1 billion and above,  
16 are in the Alternative Finance space and three were created in 2016 in 
this vertical alone - two in China and one in Hong Kong. However, whilst 
Asia is in a super-growth phase, Western companies are maturing. 
Business models are broadening out and we believe the sector  
is ripe for consolidation. 
Alternative Finance is the  
vertical with the most companies 
valued at $1 billion or above
Billion-dollar companies in this space have raised an 
average of $670 million of equity and have achieved 
an average valuation of $3.1 billion. Asia leads the 
pack with average valuations reaching $3.7 billion, 
and Ant Financial is the world’s largest Fintech 
company at a valuation of $60 billion. Alternative 
Finance in China will remain in a super-growth phase 
but we also see interesting developments underway 
in Western markets as companies adapt to a 
changing market and a more cautious investor base. 
In Europe and the US, companies such as Zopa and 
SoFi have applied for banking licenses in order to be 
able to raise consumer deposits and thereby reduce 
their cost of capital. Digital banks are also entering 
the Alternative Finance market, with banks such as 
Marcus (launched by Goldman Sachs in the US), 
Loan Volume 2016
(USD $bn)
Lending Club 
SoFi* 
Kabbage 
Funding Circle 
8.7
3.2
1.3
1.0
Global marketplace lending to reach ~$290bn by 2020 
(USD $bn)
2017 
2018 
2019 
2016 
2015 
2014 
2013 
2012 
2011 
2010 
2020 
Australia 
China 
UK 
US
1.0 
1.4 
2.4 
9.3 
23.7 
61.2 
119.1 
182.8 
220.3 
273.2 
286.3 
2
2.4x
KEY TRENDS
Atom Bank and Oak North aggressively seeking to 
use their deposits base to compete with established 
Alternative Finance players.
Higher competition, a focus on proving the 
profitability and sustainability of business models and 
cautious investor sentiment suggest that the sector is 
ripe for consolidation. We also see traditional banks 
and financial institutions playing a more pivotal role 
in the development of the market, as Alternative 
Finance players seek to diversify their sources of 
capital towards bank funding, warehouse financing, 
wholesale loans, securitisation and credit facilities, in 
order to fund origination growth. All of this bodes well 
for the industry as it matures and becomes an enabler 
rather than a disrupter of lending. 
8
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
ALTERNATIVE  
FINANCE
DIGITAL
PAYMENTS
DATA & 
SOFTWARE
DIGITAL 
BANKING
INSURTECH
ASSET
MANAGEMENT
16
10
8
2
2
1
Companies valued at $1 billion  
and above by vertical
9
FINTECH: ANYTHING BUT ALTERNATIVE
ALTERNATIVE FINANCE 
LEADING THE WAY
Fintech verticals
GP Bullhound Research
Source: Company Data, Morgan Stanley, iResearch Inc.
China cements its  
position as a leader in the  
Fintech universe
Similarly to other regions, Alternative Finance is the 
most populous Fintech vertical in China with eight 
of the 13 billion-dollar companies operating in that 
vertical. In truth, the moniker ‘Alternative’ is less 
relevant than in Western markets, which are more 
encumbered by legacy systems and models. Investors 
deployed $7.1 billion into the sector in 2016 and have 
been right to focus on the lending vertical, given the 
rate of growth.
In 2016, there were just under 2500 lending platforms 
in China and total lending volume topped RMB2 
trillion (approximately $300 billion), of which around 
20 per cent originated in 2016. Origination levels 
are forecast to rise by five times by 2020. Given 
the explosive growth being experienced in China, 
underpinned by strong fundamentals, we believe 
investors will continue to place a premium on growth 
and that valuations will outpace those in the West. 
2017 
2018 
2019 
2016 
2015 
2014 
2013 
2012 
2011 
Size of China's internet consumer finance market  
(USD $bn)
0.1 
 0.3  
 0.9  
 2.7  
 17.1  
 63.2  
 144.5  
 281.2  
 491.8  
174%
223%
205%
546%
269%
129%
95%
75%
KEY TRENDS
2016 saw China solidify its status as one of the leaders in Fintech,  
with 13 billion-dollar companies – four of which reached this valuation  
in 2016 – and the country’s weighting will undoubtedly increase in the 
coming years. The strong domestic and e-commerce market, high rates of 
investment, a supportive regulatory environment and demand for digital-
first services from under- or unbanked businesses and consumers will 
continue to fuel the Chinese Fintech sector and premium valuations.
 
Average valuation by region 
(USD $bn)
7.8
Asia
Europe
US
2.8
3.9
2.0x
2.8x
YoY Growth %
10
THE GLOBAL FINTECH
League Table 
2.4
2.3
2.3
1.0
50.6
18.5
CUMULATIVE  
VALUE
1
1
1
1
4
18
NO. OF  
COMPANIES
0
0
+1
0
LTM  
CHANGE
-1
0
112.3
13
+4
COUNTRY 
HQ
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
Note: A Hong Kong Fintech business reached a billion-dollar valuation for the first time in 2016
11
FINTECH: ANYTHING BUT ALTERNATIVE
Regional distribution of businesses valued  
at $1 billion or above
$1.0bn 
$1.0bn 
$1.0bn 
$1.0bn 
$1.0bn 
$1.0bn 
$1.0bn 
$1.0bn 
$1.0bn 
$1.1bn 
$1.1bn 
$1.2bn 
$1.3bn 
$1.3bn 
$1.5bn 
$1.7bn 
$2.0bn 
$2.0bn 
$2.0bn 
$2.0bn 
$2.1bn 
$2.3bn 
$2.3bn 
$2.4bn 
$2.4bn 
$2.7bn 
$2.7bn 
$3.5bn 
$3.6bn 
$4.0bn 
$4.5bn 
$4.9bn 
$5.9bn 
$8.0bn 
$9.2bn 
$11.0bn 
$14.4bn 
$18.5bn 
- 
$5.0bn 
$10.0bn 
$15.0bn 
$20.0bn 
Kabbage 
Dianrong 
Zuora 
Gusto 
Jimubox 
Funding Circle 
Rong360 
WeLab 
u51.com (51Xinyongka) 
China Rapid Finance 
TransferWise 
Yintech Investment Holdings 
Q2 
Coupa 
FinancialForce 
Yirendai 
Avant 
Prosper Marketplace 
First P2P.com 
Paysafe 
LendingClub 
Klarna 
Adyen 
Xero 
Mozido 
Black Knight Financial Services 
Oscar 
Credit Karma 
Greensky 
SoFi 
Zenefits 
Square 
Qufenqi 
Zhong An Insurance 
Stripe 
Lakala 
Markit 
Lufax 
Ant Financial 
$60.0bn 
$60.0bn 
WHO ARE
The global Fintech leaders?
GP Bullhound Research
Source: The Pulse of Fintech, Q3 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights  
(data provided by CB Insights) 16th November 2016
Valuations in 2016 ($bn)
» 5 new billion-dollar Fintech 
companies in 2016, all of which 
are based in Asia
» The average valuation is $4.9bn
» The average valuation of 
European Fintech firms valued  
at $1 billion or above is $3.9bn
2016 NEW ADDITIONS
KEY TRENDS
12
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
Note: * 2015 includes POWA Technologies, valued at $2.7BN, which filed for bankruptcy in February 2016
ASIA DRIVING  
GLOBAL GROWTH
Asian Fintech leaders
$71bn
$182bn*
$190bn
Number of Fintech firms valued at $1 billion  
or above per region in last 3 years
2014
2015
2016
3
10
2
7
18
10
6
18
15
Europe
United States
Asia
$215bn
2014
2015
2016
13
FINTECH: ANYTHING BUT ALTERNATIVE
Cumulative valuation of firms valued at 
 $1 billion or above ($bn)
FINTECH
VERTICALS
FINTECH VERTICALS
14
FINTECH
VERTICALS
15
FINTECH: ANYTHING BUT ALTERNATIVE
EUROPE
ALTERNATIVE FINANCE
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
» In Alternative Finance, Asia dominates. Nine of the 16 companies in the sector  
valued at $1 billion and above are headquartered in the region 
» Global marketplace lending is expected to increase 2.4x from 2016 to 2020, with China driving 
growth at a 40% CAGR, versus their US counterparts forecasting 35% CAGR over the same period
» Although Europe has only one company valued at over $1 billion today, we see a number of 
companies rising fast, as they continue to expand geographically and diversify across lending verticals
NUMBER OF COMPANIES
AVERAGE FUNDS RAISED
AVERAGE VALUATION
16
$670m
$3.1bn
» Alternative Finance firms valued at  
$1 billion or above
» Average of total funds raised
» Average equity valuation of sample set of 
businesses valued at $1 billion or above  
» Based on market capitalisation for public 
companies and disclosed information for 
private companies
UNITED STATES
ASIA
ALTERNATIVE FINANCE
16
17
FINTECH: ANYTHING BUT ALTERNATIVE
Founded: 2010
HQ: London, UK
Revenues (FY2015A): $35.1m
EBIT: $(25.9m)
Total Funds Raised: $374m*
Summary Offering: Online 
marketplace for small business 
loan lenders and seekers
Total Cumulative Lending  
(as of end 2016): +$1.8bn
ALTERNATIVE FINANCE
Funding Circle - The road  
to $1 billion
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017 
* not including debt financing 
$374m
$274m
$124m
$59m
$22m
$5m
$1m
$15m
$68m
$209m
$1.1bn
+$1.1bn
ANGEL:  
$1m
SERIES A:  
$4m
SERIES B:  
$16m
SERIES C:  
$37m
SERIES D:  
$65m
SERIES E:  
$150m
SERIES F:  
$100m
Cumulative Funds Raised ($m)
Post Money Valuations ($m)
2010
2011
2012
2013
2014
2015
2016
2017
ALTERNATIVE FINANCE
Companies to watch
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
* Note: Initial criteria for inclusion is a valuation greater than $150 million 
» This is a selection of Alternative Finance firms that GP Bullhound believes could 
achieve a billion-dollar valuation in the coming months and years*
» These businesses have the potential to reach this valuation due to  
their fast-growth, ambition and robust credentials
Key Investors: 
» Atomico
About Lendinvest: 
» UK’s leading Fintech disruptor in  
specialist mortgage lending
» Highly attractive loan metrics with over 
£980m lent to fund over 3,000 properties for  
a total value of over £1.7bn since 2013
Founded:  
2013
HQ:  
 
London, United Kingdom
Employees:  
100+
Key Investors: 
» Balderton Capital
About Prodigy:
» First borderless credit platform
» Pioneer in underserved international 
student loan market
» Attractive unit economics per high value 
loan will support as strong growth later
Founded:  
2006
HQ:  
 
London, United Kingdom
Employees:  
50-100
Key Investors: 
» Emery Capital
About ID Finance: 
» Digitizing consumer lending across 
emerging markets
» Proprietary and fully automated scoring 
model employs machine learning to 
analyse 10k data points in real time
» Launched in six countries across Europe 
and LatAm and the number one online 
lender in Russia and the CIS
Founded:  
2012
HQ:  
 
Barcelona, Spain
Employees:  
380
2
Rounds
$59m
Total Funds  
Raised
1
Round
$123m
Total Funds  
Raised
2
Rounds
$60m
Total Funds  
Raised
ALTERNATIVE FINANCE
18
19
FINTECH: ANYTHING BUT ALTERNATIVE
ALTERNATIVE FINANCE
Expert view
CHRISTIAN FAES
Co-Founder & CEO, LendInvest
Consumers are demanding significant changes in the 
financial services industry. The rise of on-demand services 
isn’t confined to leisure, travel and retail like Uber and 
Deliveroo; but as use of these products increases, so does 
consumer expectation that they’ll receive the same 
kind of instantaneous, efficient experiences from their 
banks and lenders. As little as a few years ago, many 
people were apathetic towards financial services, the 
emergence of challenger banks, online lenders and 
payment companies show us that consumers are now 
crying out for an improved experience that begins online. 
In my view, the next wave of Fintech innovation will be 
seen in sectors that are typically less easy to penetrate 
with technology. Mortgages and insurance in particular 
are next in line. The next wave of Fintech success stories 
too will be those that are focused on one proposition 
only to deliver an improved experience. You can already 
see platforms that have had success have concentrated 
on one specialism and done it well. We know that we 
are a specialist property lender. All of the expertise we 
have brought into LendInvest and all of the technology 
we have been developing are focused simply on lending 
against property.
This clarity of what you can deliver for the consumer will 
also appeal to investors. I think that there has been a 
flight to quality recently. Globally, the Fintech sector saw 
a decline in investment in 2016. This fall in funding reflects 
the growing realisation that Fintech is no longer revolution 
but evolution, less bank bashing, more steady building. 
This means we are not looking to rip up the rule book in 
the way that the first wave of Fintech did. For investors, 
this simply translates to looking for businesses that have 
a model that is sustainable and profitable. Likewise, 
entrepreneurs are much more willing to take their time, 
attract the right talent, and work hard to build a business 
that has a proposition with genuine longevity. Last, we 
have also started to see more traditional banks and 
lenders embracing technology and working with  
Fintech firms.  
Ultimately, this transition towards a more consistent, 
sensible model for growth shows that the hype cycle has 
moved beyond its peak. Investors want to see profitability 
and returns; they do not want skyrocketing valuations 
and an unstable market. Gone are the days when you 
could expect to raise a billion dollars simply by labelling 
yourself a Fintech business. 
From our perspective, we have always been sceptics. If 
you are lending a billion dollars a year and you cannot 
make money, then how much do you need to lend 
before you do make money? You only have to look at 
some of the largest marketplace lenders in the US to see 
just how quickly you can come unstuck when you chase 
growth and neglect the importance of profitability. 
All of this points towards a phase of consolidation in the 
market, particularly as investors become less willing to 
part with their money. In my view, those businesses that 
have begun to struggle for traction in the market, or 
struggled to demonstrate an ability to turn a profit from 
operations, however modest, will become acquisition 
prospects fairly soon. 
Financial services is more regulated than other sectors 
on which technology has had a huge influence, such 
as media, leisure or transport. As such, it is never going 
to be an industry with a ‘winner takes all’ situation: 
the regulator simply will not let there be an Uber for 
banking. Nonetheless, the near future of Fintech will be 
characterised by fewer players taking greater market 
share and acquiring smaller competitors.  
LendInvest is dedicated to driving innovation in financial 
services and the mortgage market. We believe that 
we have a proposition that will fundamentally improve 
people’s experience of mortgages, in turn enabling 
us to scale and consolidate. Fintech is simple. It is not 
about trying to take down an industry; it is about making 
financial services better for consumers. This is what will 
ensure the growth of Fintech for decades to come. 
For years, traditional banking institutions have dominated the largest area of financial services: 
the mortgage market. This vast market share has allowed the banks to neglect consumers, 
especially when it comes to bringing services online. Our mission at LendInvest is to tackle this 
by developing online tools to create a better consumer experience for mortgage customers. 
DIGITAL PAYMENTS
DIGITAL PAYMENTS
» Digital Payments is the largest Fintech vertical by average funds raised  
and continues to attract significant venture capital investment
» In the first three quarters of 2016, $1.2 billion of venture capital  
was invested into Digital Payments globally
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
* Note: without including Ant Financial, who raised $6.4bn in 2016, the average is $329m
UNITED STATES
EUROPE
ASIA
NUMBER OF COMPANIES
AVERAGE FUNDS RAISED
AVERAGE VALUATION
10
$936m*
$9.6bn
» Digital Payments firms valued at  
$1 billion or above
» Average of total funds raised
» Average equity valuation of sample set of 
businesses valued at $1 billion or above  
» Based on market capitalisation for public 
companies and disclosed information for 
private companies
20
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
1. SEK 8bn valuation in Aug 2013 sell-off by Anralk Holding (Sven Hagströmer and Mats Qviberg)
DIGITAL PAYMENTS
Klarna - journey to $1 billion  
and beyond 
 
Founded: 2005
HQ: Stockholm, Sweden
Revenues (LTM Q2 2016): $351m
EBITDA (LTM Q2 2016): $27m
Total Funds Raised: $327m
Summary Offering: E-commerce 
payment solutions for merchants 
and shoppers
Cumulative Funds Raised ($m)
Valuations ($m)
2010
2009
2007
2006
2008
2011
2012
2013
2014
2015
2016
2005
$11m
$2.3bn
$0.9bn 1
SERIES A:  
$2m
SERIES B: 
$9m
SERIES C:  
$155m
VENTURE:  
UNDISCLOSED
VENTURE:  
$124m
DEBT FINANCING: $36m
$2.3m
$0.1m
$166m
$291m
$327m
ANGEL:  
$80k
21
FINTECH: ANYTHING BUT ALTERNATIVE
DIGITAL PAYMENTS
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
* Note: Initial criteria for inclusion is a valuation greater than $150 million
DIGITAL PAYMENTS
Companies to watch
» This is a selection of Digital Payments firms that GP Bullhound believes could  
achieve a billion-dollar valuation in the coming months and years*
» These businesses have the potential to reach this valuation due to  
their fast growth, ambition and robust credentials
Key Investors: 
» 83North, Vitruvian, Angel CoFund
About Ebury: 
» Highly scalable international platform 
already present in UK, Benelux, DACH, 
France, Iberia, Ireland, and Italy
» Loyal customer base displaying high levels 
of repeat revenue
» Latest funding round with leading growth 
investors valued company at more  
than $500m
Founded:  
2009
HQ:  
 
London, United Kingdom
Employees:  
300
Key Investors: 
» 83North, American Express Ventures, 
Creandum, Index Ventures, Intel Capital, 
Northzone
About iZettle: 
» Successfully built a broad user base in 
mature and high growth markets
» Starting to tap into wider monetization 
strategies including iZettle Advance product
» Close and trusted partner to an SME base 
across 12 markets globally
Founded:  
2010
HQ:  
 
Stockholm, Sweden
Employees:  
450
Key Investors: 
» Accel Partners, Project A Ventures, TCV
About worldremit: 
» Serving the enormous $600bn global 
remittances market
» Flexible products offer customers multiple 
ways to receive FX payments and transfers
» Very competitive pricing in the market is 
putting pressure on legacy players and 
eroding their market share
Founded:  
2010
HQ:  
 
London, United Kingdom
Employees:  
167
5
Previous Equity 
Rounds
$120m
Total Funds  
Raised
5
Previous Equity 
Rounds
$170m
Total Funds  
Raised
3
Previous Equity 
Rounds
$184m
Total Funds  
Raised
22
DIGITAL PAYMENTS
DIGITAL PAYMENTS
Expert view
DAVID FOCK
CPO, Klarna
However, there are further technologies that are 
beginning to have a substantial impact and accelerate 
the rise of Fintech. BankID in Sweden, for instance, has 
enabled 7.5 million people to make use of revolutionary 
electronic identification services. These technologies 
working in partnership with the boom in mobile ownership 
mean that Fintech is starting to reach a point where it has 
the chance to redefine how we use financial services. 
The technology has now reached a level that allows 
for a company like ours to truly make a difference, 
substantially changing the user experience for the 
better. However, it is still vital to bear in mind that current 
technology has only recently reached the point at which 
it can bring about large scale change. 
Fintech, despite already having had a significant 
impact, still has a lot of work to do to deliver meaningful 
change for consumers. It is only through time, further 
development, and really hard work that we will be able 
to provide a more holistic product that resolves critical 
problems and improves the user experience in the 
banking or financial services sectors.  
I think the core challenge that we must address to 
reach this goal is the density of top talent we can get 
into the company. That is a far greater challenge than 
any regulatory issue. The way that we execute our plans 
through talent and innovation; that is our fundamental 
challenge. 
This might conflict, however, with what you might imagine 
of a Fintech firm. It is not like all the smart people sit in 
startups, and all the not-so-smart people sit in the banks. 
There are plenty of very intelligent, talented and forward-
looking people working in both banks and other financial 
institutions. Not only do these people have the talent to 
bring technology to financial services, but they also have 
an acute awareness of the fact that new technology is 
posing a threat to their industry. 
In contrast to our situation, the challenge for those 
traditional financial institutions is how fast they can drive 
change. And driving change is, of course, among the 
hardest things you can do. What I have seen is that a 
lot of the banks have good ideas going, but the mobile 
banking service they offer to their millions of customers 
still does not change at all. That is the core challenge for 
the banks: how do they make use of the significant talent 
sitting in their digital teams to inspire meaningful change 
for their consumers? 
One significant change that is on the horizon is the 
impact of artificial intelligence. Clearly AI is a broad term, 
but where we feel it can have a vast impact in financial 
services is in user experience. It will transform how you 
interact and engage with digital platforms. This could 
start with simply asking a virtual personal assistant: “what 
is the balance on my account?” However, we feel that  
a conversational type of user experience powered by  
AI has the potential to shape every aspect of  
financial services. 
That is not to say that we intend to be building 
conversational control capabilities at Klarna. Rather, 
we will look to use the best technology in the market 
and add our own user experience and our services to 
it. Especially when it comes to AI, we have a lot of data, 
and data is what those technologies require to read, 
learn, and be able to do anything meaningful. Basically, 
we will probably not build a library, but we will fill it  
with books! 
This means that Klarna will stick to its core objective for 
the near future. We will not seek to create or adapt 
technologies that are beyond our skillset. In five years, it 
is our ambition to pose a real threat to traditional credit 
cards, getting to a place where you don’t need a card, 
you will only need Klarna.
New technologies have been critical to the growth of Klarna and the beginning of a 
transformation of financial services. The majority of Europeans have a smartphone, which 
enables them to access mobile financial services every hour of every day. This has been the 
platform for the start of the renewal of an industry.
24
25
FINTECH: ANYTHING BUT ALTERNATIVE
DIGITAL PAYMENTS
Expert view
OSCAR BERGLUND
CEO, Trustly
One example from the Nordics is mobile bank ID. 
Founded in Sweden, the app is available to all 
consumers, and allows for convenient identification and 
authentication. It’s a fantastic innovation that didn’t 
come from fintech, but traditional Swedish banks. In 
response, fintechs have taken this innovation and built 
additional products on the top of the service. In this way 
the financial industry in Europe has created an ecosystem 
capable of sharing technology innovation to the benefit 
of traditional players and tech startups alike. 
Ultimately, fintech is about making products and 
services that simplify the life of the customer. In Europe, 
a critical mass of online consumers and digitally 
enabled businesses have created a highly financially 
literate customer pool with enormous potential for user 
simplification. That can be new means of payment, 
better ways to borrow money or access to financial 
advice. Each application offers opportunities for startups 
to innovate and grow successful businesses. Customers 
are used to having things instantly and they don’t want 
to wait for hours before they know if they have been paid 
or received the information they need and so they are 
increasingly turning to startups to offer these services. 
The growth potential in this fintech landscape is 
enormous. One option is international expansion and 
we’ve seen examples of European fintechs going outside 
of Europe, and I think many of them will do so very well. 
At Trustly we can expand scale by helping new 
merchants to get paid and we ourselves can enter new 
countries, allowing consumers to pay with our products. 
We can also grow with our existing merchant base as 
they enter new countries. Or indeed we could consider 
mergers and acquisitions. Whilst there is a demand for 
effective, affordable services, we’re determined to roll 
out the best possible products across Europe.  
Of course, there are challenges which fintech companies 
face in Europe. Despite Trustly’s rapid growth, we are just 
as concerned about finding good people as any other 
technology company. Today we have 150 employees 
from 23 different countries and we continually try to find 
new ways to motivate colleagues. 
One aspect which delays the emergence of global 
fintech players, is the fact that in lots of these instances 
you need a local license. Even with a European license, 
when you enter the US or other territories you need to 
invest time and money into securing local licenses and 
there are always delays in the process. Local expansion 
is much easier because a Swedish license can be 
passported to European countries so Sweden is perfectly 
poised to serve the continent. But this is certainly an issue 
which negatively impacts the global potential of the 
industry. 
Looking to the future, I think authorization and 
authentication will attract huge levels of investment. 
Historically, authorizing bank payments has already 
seen innovation. With scratch cards you had to scratch 
and get a one-time code. Then came along a piece 
of hardware you needed to carry with you or store in a 
drawer at home. What’s happening now is that these 
procedures are moving into your mobile phone. You can 
get a text message with a one-time code, or in Sweden 
you use your mobile bank ID. These use cases are all 
making it more convenient for the consumer to make a 
bank transfer. This simplifies the process of bank payments, 
which is good news for us. 
Over the next five years, I think the lines around fintech 
are going to become increasingly blurred. Customers 
won’t differentiate between technology companies, 
banks or non-banks. We will see a more diverse market 
and more collaboration between product developers at 
small companies and tech teams in global banks as they 
create and distribute new products.
Europe’s competitive advantage lies in the quality of our financial infrastructure. Whilst we  
may not have the same level of capital available when compared with the US or Asia, where the 
European market excels is in having sophisticated infrastructure and a wealth of established 
institutions. In Europe, rather than seeing Fintech as a disruptive influence, there is instead 
increasing levels of collaboration between traditional players and Fintech startups. 
DATA & SOFTWARE
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights, press articles, GP Bullhound analysis as at March 2017 
UNITED STATES
EUROPE
ASIA
NUMBER OF COMPANIES
AVERAGE FUNDS RAISED
AVERAGE VALUATION
8
$227m
$3.9bn
DATA & SOFTWARE
» Data & Software firms valued at  
$1 billion or above
» Average of total funds raised
» Average equity valuation of sample set of 
businesses valued at $1 billion or above 
» Based on market capitalisation for public 
companies and disclosed information for 
private companies
» Data and Software companies are delivering a new age of transparency  
and insight into the complex financial services industry
» Key sub-sectors include transaction and pricing analytics,  
accounting, payroll and HR
DATA & SOFTWARE
Xero - journey to IPO
26
27
FINTECH: ANYTHING BUT ALTERNATIVE
DATA & SOFTWARE
Xero - journey to IPO
Founded: 2006
HQ: Wellington, New Zealand
Revenues (FY2016A): $183.5m (Mar-YE)
EBITDA (FY2016A): $(59.9m) (Mar-YE)
Total Funds Raised: $389m
Summary Offering: Platform for online 
accounting and business services to 
small businesses 
Pre-IPO Cumulative Funds Raised ($m)
Post-IPO Cumulative Funds Raised ($m)
Post Money Valuation ($m)
IPO:  
$11m  
NZX Listing
FOLLOW-ON 
EQUITY: $15m
PLACEMENT: 
$15m
PLACEMENT: 
$67m
PLACEMENT:  
$3m
FOLLOW-
ON EQUITY: 
$13m
PLACEMENT:  
$151m
PLACEMENT:  
$114m
CURRENT
$1.7bn
IPO
$41m
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
$11m $21m $41m $44m
$124m
$275m
$389m
2010
2009
2007
2006
2008
2011
2012
2013
2014
2015
2016
DATA & SOFTWARE
Companies to watch
» This is a selection of Data & Software firms that GP Bullhound believes could  
achieve a billion-dollar valuation in the coming months and years*
» These businesses have the potential to reach this valuation due to  
their fast-growth, ambition and robust credentials
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
* Note: Initial criteria for inclusion is a valuation greater than $150 million
Key Investors: 
» BBVA Ventures, DAG Ventures, EDB 
Investments, Matrix Partners, QuestMark 
Partners, Zouk Capital
About Taulia: 
» Taulia provides cloud-based invoice, 
payment and discount management 
solutions for large buying organizations
» Track record of success with Fortune  
500 companies 
» Business model is a combination of an 
annual fees and share of payments 
made earlier through the platform 
Founded:  
2009
HQ:  
 
San Francisco, United States
Employees:  
275+
8
Rounds
$137m
Total Funds  
Raised
DATA & SOFTWARE
Key Investors: 
» Blumberg Capital, Global Founders 
Capital, IFC, JC Flowers Rakuten,  
Victory Park Capital
About Kreditech: 
» Kreditech provides credit access to 
people with limited or no credit history 
through the use of data analytics
» The offering includes consumer loans, 
a digital wallet, and a personal finance 
manager which helps underbanked 
consumers to manage their credit score
Founded:  
2012
HQ:  
 
Hamburg, Germany
Employees:  
200+
8
Rounds
$163m
Total Funds  
Raised
Key Investors: 
» Discovery Capital Groupe Aeroplan, 
Kinetic Ventures, Atlanta Ventures, West 
Coast Capital
About cardlytics: 
» Cardlytics uses purchase-based 
intelligence to make marketing more 
relevant and measurable
» Partnerships with 1,500+ financial 
institutions gives access to vast amounts 
of purchasing data
Founded:  
2008
HQ:  
 
Atlanta, United States
Employees:  
335+
5
Rounds
$191m
Total Funds  
Raised
28
29
FINTECH: ANYTHING BUT ALTERNATIVE
» Insurtech companies are shaking up the insurance world  
with self-directed services and usage-based insurance
» The Insurtech subsector has witnessed very strong growth  
in investment interest, with a total of $1.4 billion of venture  
capital invested in the first three quarters of 2016
INSURTECH
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights, press articles, PwC, GP Bullhound analysis as at March 2017 
Note: Only includes billion-dollar companies where data is available.
UNITED STATES
ASIA
NUMBER OF COMPANIES
AVERAGE FUNDS RAISED
AVERAGE VALUATION
2
$836m
$5.4bn
» Insurtech firms valued at  
$1 billion or above
» Average of total funds raised
» Average equity valuation of sample set of 
businesses valued at $1 billion or above  
» Based on market capitalisation for public 
companies and disclosed information for 
private companies
INSURTECH
INSURTECH
INSURTECH 
Oscar - the road to $1bn  
and beyond
Founded: 2012
HQ: New York, United States
Total Funds Raised: $739m
Summary Offering: Health 
insurance company that 
employs technology, design, 
and data to humanise  
health care
Cumulative Funds Raised ($m)
Post Money Valuation ($m)
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
SERIES A: 
$52m
SERIES A: 
$30m
SERIES B: 
$80m
SERIES C: 
$142m
VENTURE: 
$33m
PRIVATE 
EQUITY: 
$400m
$121m
$340m
$800m
$1.5bn
$1.75bn
$2.7bn
$52m
$82m
$162m
$306m
$339m
$739m
2014
2015
2016
30
INSURTECH
Companies to watch
» This is a selection of Insurtech firms that GP Bullhound believes could  
achieve a billion-dollar valuation in the coming months and years*
» These businesses have the potential to reach this valuation due to  
their fast-growth, ambition and robust credentials
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
* Note: Initial criteria for inclusion is a valuation greater than $150 million
Key Investors: 
» 
Intel Capital, PremjiInvest, Inventus Capital
About PolicyBazaar:
» Leading online life insurance and general 
insurance aggregator in massive Indian 
market
» Unique competitive offering gives it large 
credibility and a strong value proposition to 
disrupt the Indian insurance market
» Experience in navigating complex and 
changing financial sector regulatory 
environment
Founded:  
2008
HQ:  
 
Gurgaon, India
Employees:  
560
Key Investors: 
» Founders Fund, Google Ventures,  
Maverick Capital
About Collective Health:
» Applying technology and design to 
transform the $3tn US healthcare market
» Estimated already $200m health insurance 
claims processed for c.30,000 members  
in 2016
» Backing from leading tech partners and 
growth accelerator funds 
Founded:  
2013
HQ:  
 
San Mateo, United States
Employees:  
120
6
Previous Equity 
Rounds
$78m
Total Funds  
Raised
3
Previous Equity 
Rounds
$125m
Total Funds  
Raised
31
FINTECH: ANYTHING BUT ALTERNATIVE
» Digital Banking is one of the nascent Fintech sectors with only  
two businesses valued at $1 billion or above
» In the UK, the sector is picking up momentum and investor confidence with  
Atom Bank announcing an equity investment of $102 million in Q1 2017 by support 
from its existing investors and Starling Bank raising $70 million in 2016
» With additional players set to gain their banking licences in 2017, competition is 
heating up against traditional banks which have legacy costs and poor user experience
DIGITAL BANKING
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
NUMBER OF COMPANIES
AVERAGE FUNDS RAISED
AVERAGE VALUATION
2
$256m
$1.1bn
DIGITAL BANKING
ASIA
UNITED STATES
» Digital Banking firms valued at  
$1 billion or above
» Average of total funds raised
» Average equity valuation of sample set of 
businesses valued at $1 billion or above  
» Based on market capitalisation for public 
companies and disclosed information for 
private companies
DIGITAL BANKING 
Q2 - journey to IPO
32
33
FINTECH: ANYTHING BUT ALTERNATIVE
DIGITAL BANKING 
Q2 - journey to IPO
Founded: 2005
HQ: Austin, United States
Revenues (FY2016A): $150.2m
EBITDA (FY2016A): $(20.4m)
Total Funds Raised: $341m
Summary Offering: Cloud-based virtual  
banking solutions for regional and 
community financial institutions
Pre-IPO Cumulative Funds Raised ($m)
Post-IPO Cumulative Funds Raised ($m)
Post Money Valuation ($m)
CURRENT
$1.2bn
IPO
$0.4bn
SERIES A: 
$11m
SERIES B: $11m 
UNDISCLOSED 
INVESTORS
SERIES C: 
$20m
IPO: $101m 
NYSE LISTING
FOLLOW-ON 
EQUITY: $131M
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
$11m
$22m
$42m
$143m
$341m
2010
2009
2007
2006
2008
2011
2012
2013
2014
2015
2016
2005
DIGITAL BANKING
Companies to watch
» This is a selection of Digital Banking firms that GP Bullhound believes  
could achieve a billion-dollar valuation in the coming months and years*
» These businesses have the potential to reach this valuation due to  
their fast-growth, ambition and robust credentials
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
* Note: Initial criteria for inclusion is a valuation greater than $150 million
Key Investors: 
»  Anthemis Group, Banco Bilbao, Polar 
Capital & Toscafund AM
About Atom Bank:
»  Leading UK-based mobile first digital 
bank with banking license and significant 
fundraising momentum
»  UK domestic market at forefront of digital 
banking adoption with large addressable 
credit and current account potential
»  Entering into mature and incumbent UK 
mortgage market
Founded:  
2013
HQ:  
 
Durham, United Kingdom
Employees:  
200+
Key Investors: 
»  Indiabulls Housing Finance Limited
About OakNorth Bank
»  Uniquely servicing an under-financed 
and growing entrepreneurs business loans 
market in the UK
»  Efficient lending selection and propriety 
technology platform scalable across 
multiple regions
Founded:  
2013
HQ:  
 
London, United Kingdom
Employees:  
150+
Key Investors: 
»  Battery Ventures, Horizon, Peter Theil,  
Valar Ventures
About N26:
»  Europe’s leading digital bank with 
expansion plans in 17 countries across  
the Eurozone
»  Processed over €3 billion in transaction 
volume since founded with active user 
base tripling from to 300k+ in Mar-17 from 
beginning of year 
»  Participation from leading growth and 
disruption investors including Battery 
Ventures, Horizon & Peter Thiel
Founded:  
2013
HQ:  
 
Berlin, Germany
Employees:  
150+
$268m
Total Funds  
Raised
$137m
Total Funds  
Raised
$52m
Total Funds  
Raised
3
Previous Equity 
Rounds
2
Previous Equity 
Rounds
4
Previous Equity 
Rounds
DIGITAL BANKING
34
DIGITAL BANKING
Companies to watch
35
FINTECH: ANYTHING BUT ALTERNATIVE
DIGITAL BANKING
Expert view
RISHI KHOSLA
CEO, OakNorth Bank
In my previous business, Copal Amba, we tried to 
get debt financing from the UK highstreet banks at 
a relatively early stage, but at a stage where we felt 
creditworthy nonetheless. The banks told us that the only 
way they could lend to us was by putting a charge on 
our house. We went to the US a few months later and 
were able to secure one hundred times the capital we 
were looking for, so there is clearly a problem in the UK.
We therefore set out to launch a fully regulated bank 
that leverages technology to deliver lending solutions to 
SMEs that are ten times better than anything else in  
the market. 
This is not about reinventing banking. We are not saying 
that you should take a traditional bank and reconstitute 
it as a purely digital platform. Our view is that there are 
parts of banking that make immense sense. The growth 
in digital banking is about putting together various 
elements of financial services and new technologies to 
create the right solution, in our case to provide lending 
to entrepreneurs. For instance, we have been able to 
incorporate machine learning into our credit process. 
This has enabled us to blur the lines between what the 
Fintech players are doing and what the banks are doing 
to simply ask: what is the best way to lend? We are able 
to complete deals in a matter of weeks, and sometimes 
even days, but with even more robust underwriting than 
the larger institutions who take anywhere from nine to 12 
months to complete a transaction. 
There is huge appetite for this speed, flexibility and 
bespoke approach to lending in the UK. We launched a 
business in 2015 and have since lent around £400 million. 
We will lend around a further £500 million this year and 
will double that next year, to build up a lending book of 
approximately £2 billion. 
In terms of overseas expansion, we do not currently have 
any immediate plans to lend outside of the UK, as we 
think the market opportunity is significant enough here for 
us to focus our attention and efforts on the UK. There is so 
much pent-up demand and frustration from companies 
trying to get access to high-quality debt financing. 
Whether or not the country remains part of the single 
market or whether banks remain able to passport is 
beside the point. Sitting here today, our qualified pipeline 
is around £700 million of potential businesses to lend 
to. This leaves us in a position where we can focus on 
building a very substantial business in the UK, without 
needing to think about spreading ourselves too thin or 
expanding overseas too soon.
Meanwhile, the broader political and economic climate 
means that many banks that are already failing to deliver 
adequate products and services for SME borrowers have 
begun to retreat even more. The supply of capital in 
the market, particularly for entrepreneurs, then starts to 
contract and we have a greater number of businesses 
looking for growth capital.  
Our belief is that we have a market opportunity of at 
least £10 billion, perhaps even £20 billion here in the UK. 
The scale of this opportunity reflects a deep-set problem 
at the heart of financial services: making debt finance 
far more readily available for growing businesses, and 
enabling the UK’s entrepreneurs to thrive. 
My focus is to solve this problem and to build an amazing 
business on the back of it. A billion-dollar valuation is not 
the target for me; it is significantly higher, but that’s for 
another day.
Business lending in the UK is dominated by the big five banks – who have 90 per cent of the 
SME market share between them and who have not had significant competition for the past 
150 years. This has left borrowers – in our case entrepreneurs and fast-growth businesses 
– looking for capital to grow their business with no option other than to look to alternative 
sources of credit. 
ASSET MANAGEMENT
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights, press articles, PwC, GP Bullhound analysis as at March 2017 
Note: Only includes billion-dollar companies where data is available.
ASSET MANAGEMENT
ASIA
NUMBER OF COMPANIES
AVERAGE FUNDS RAISED
AVERAGE VALUATION
1
$141m
$1.2bn
» Asset Management firm valued at  
$1 billion or above
» Average of total funds raised
» Average equity valuation of sample set of 
businesses valued at $1 billion or above 
» Based on market capitalisation for public 
companies and disclosed information for 
private companies
36
» Asset Management and capital markets are experiencing rapid 
innovation across front, middle and back office functions, with crucial 
trends including sophisticated data analytics and increased  
automation of asset allocation and wealth management
RAISED THROUGHOUT 
2011-2015: $40m
IPO: $101m
IPO:
$121m
CURRENT  
M. CAP: 
$1.2BN
ASSET MANAGEMENT 
Yintech - journey to IPO  
and beyond 
Founded: 2011
HQ: Shanghai, China
Revenues (FY2016A): $369.3m
Net Income (FY2016A): $134m
Total Funds Raised: $141m
Summary Offering: Online provider  
of spot commodity trading services
Cumulative Funds Raised ($m)
Post Money Valuation ($m)
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at March 2017
1. Round sizes, timings, and investors undisclosed
$40m
$141m
2011
2012
2013
2014
2015
2016
37
FINTECH: ANYTHING BUT ALTERNATIVE
ASSET MANAGEMENT
Companies to watch
» This is a selection of Asset Management firms that GP Bullhound believes could  
achieve a billion-dollar valuation in the coming months and years*
» These businesses have the potential to reach this valuation due to  
their fast-growth, ambition and robust credentials
GP Bullhound Research
Source: Company data, Capital IQ, Mergermarket, CB Insights (US data), PitchBook, press articles, GP Bullhound analysis as at December 2016
* Note: Initial criteria for inclusion is a valuation greater than $150 million
ASSET MANAGEMENT
Key Investors: 
» Kinnevik, Menlo Ventures, Bessemer 
Venture Partners
About Betterment:
» Market leading robo-advisor with >$5bn 
AUM in a market with massive potential
» Excellence in ease of use and design  
of website
» Company valuation accelerated from 
$450m in 2015 to $700m in 2016
Founded:  
2008
HQ:  
 
New York, United States
Employees:  
149
Key Investors: 
» DSpark Capital, Index Ventures, Ribbit 
Capital, Greylock Partners
About Wealthfront:
» One of the leading US-based platforms 
for auto-investing
» Tapping into a new market by providing 
cheaper, accessible investment advice
» Recent copying by larger incumbent 
asset managers shows value to 
consumers of simplifying platform and 
investment transparency
Founded:  
2011
HQ:  
 
California, United States
Employees:  
60
Key Investors: 
» Armada Investment Group, Balderton 
Capital, Pentech Ventures
About Nutmeg:
» First mover advantage in UK and Europe 
led to strong brand and a proven track 
record to use for customer acquisition
» Market leader in the UK
» State-of-the-art proprietary technology 
platform for auto-investing with deeply 
competitive pricing will drive competitive 
position in early stages
Founded:  
2014
HQ:  
 
London, United Kingdom
Employees:  
200+
$205m
Total Funds  
Raised
$130m
Total Funds  
Raised
$85m
Total Funds  
Raised
5
Previous Equity 
Rounds
6
Previous Equity 
Rounds
6
Previous Equity 
Rounds
38
39
FINTECH: ANYTHING BUT ALTERNATIVE
DISCLAIMER
No information set out or referred to in this 
research report shall form the basis of any con- 
tract. The issue of this research report shall  not 
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ALEXANDRA JARVIS 
Director 
CARL WESSBERG 
Director 
GP Bullhound Research
1. Sources for the valuation transaction data from PitchBook, CBInsights, Crunchbase, Business Insider, SP CapitalIQ,
MergerMarket, with public market caps as of 31 December 2016
» Financial Technology companies with a bias towards internet and software driven  
business models (hardware and related peripherals have been excluded)
» Companies with an equity valuation of $1 billion or above in the public or private markets1
» Companies which were founded in 2000 or later 
» First Caveat: our sources include public data (e.g. press articles, blogs, and industry rumours),  
and the accuracy of our dataset is limited to such extent
» Second Caveat: the analysis of our data is based on data as 31 December 2016,  
which has obvious limitation related to, for example, the state of equity markets  
and recent public company performance where applicable
METHODOLOGY
AUTHORS
RAVI GHEDIA 
Vice President 
JOHANNES ÅKERMARK 
Vice President 
KYLE BOOYSENS 
Analyst 
THE GP BULLHOUND TEAM
CLAUDIO ALVAREZ 
Director 
FELIX BRATELL 
Analyst 
JULIEN YEE 
Intern 
METHODOLOGY
40
JAVED HUQ
Vice President
THE GP BULLHOUND TEA</p>