Fintech funding soars in 2016
A new report released by KPMG International and CB Insights said $4.9 billion was invested in venture-backed fintech startups around the world during the first quarter of 2016. According to Quartz, that is 96 percent more than was invested in the first quarter of 2015.
The report noted that if funding continues at this rate for the rest of the year, overall funding to venture-backed fintech startups will increase 36 percent in 2016 as compared to 2015.
China leads the way
China is currently the leader in fintech investments, with the two largest deals taking place there. Lu.com and JD Finance, both based in China, took part in deals of over $1 billion. The third-largest deal went to Oscar Health Insurance, who raised $400 million in startup funding in a Series C funding round. The report authors predicted that China will continue to lead the way in the second quarter as well, especially considering a $4.5 billion funding round for China-based Ant Financial already closed in April.
James McKeogh, a management consulting partner at KPMG Hong Kong said Asian banks are increasingly experimenting with fintech in search of long term results.
"...this is going beyond the traditional accelerators into more long term results driven mechanisms, rather than marketing led publicity campaigns," McKeogh said.
Trends in fintech
The report also discussed a few fintech trends, such as the fact that North American investors seem to be less focused on payments, which is probably due to a saturated market.
Two concepts in which investor interest is growing on a global scale are robo advisors and InsuranceTech. The U.S. is currently ahead of Europe and Asia in the development of robo advisor technology, though the report predicted that overall investment will continue to grow as the market matures.
Daniel O'Keefe, a subject matter expert on robo advisory for KPMG U.S. spoke in the report about how robo advisors will develop in the future.
"In the future, we will likely see a broadening focus of digital advice including a much more holistic view of the clients' assets, income and liabilities; not just the assets under management for that given platform," O'Keefe said.
Bloomberg explained that the extreme growth of investment in fintech companies is happening despite an overall harsh funding climate for startups. The publication referenced an earlier report from KPMG International and CB Insights, which said that in 2016 there are more startups receiving markdowns or down rounds than there are startups becoming unicorns.
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.
Recent NewsBridge Bank Closes on $25,000,000 Credit Facility for Targeted Lease CapitalBridge Bank Extends $15,000,000 Growth Capital Term Loan to ExamityBridge Bank's Business Escrow Services Group Launches New Paying Agent PlatformBridge Bank Extends $12,000,000 Credit Facility to EllevationAlex Tsarnas Joins Bridge Bank Team to Lead Its Newly Established Banking Group, Business Escrow Services
Recent InsightsExperts Point to “Exiting the Tunnel” in Western Alliance Bank’s National Economic Intelligence ReportPNW's VC Ecosystem Posts a Record $5.4B in Value for 2020C-PACE: Non-Traditional Funding Options Helps Owners, Developers Go GreenerNational Economic Intelligence Report Provides Glimpse into Post-Pandemic EconomyAnalyzing life sciences VC activity's main hot spots
Join us and PitchBook, along with our special guests to discover key top-level trends that have defined #VC deal-making in #Chicago. RSVP now and receive a free download of our report Markets to Watch: Chicago with data provided by PitchBook. info.bridgebank.com/markets-to-wat… - yesterday pic.twitter.com/l0HaqoXNoGThe VC ecosystem in #Chicago generated record funding and exit activity during the pandemic. Join our panel of experts on Tuesday, June 22 when they discuss and analyze the #venturecapital trends responsible for this activity. info.bridgebank.com/markets-to-wat… - 3 days pic.twitter.com/x4kQdT1O5dJoin us for Markets to Watch: #Chicago and discover how funding for the regions SaaS #startups rode venture investor enthusiasm posting $674 million in aggregate deal value. RSVP today and receive a free copy of our report with data provided by PitchBook. info.bridgebank.com/markets-to-wat… - 4 days pic.twitter.com/5jfmJzpgMxLearn what’s behind the momentum in #Chicago #venturecapital activity as our panel of experts unpack the top trends in the region. RSVP today and receive a free download of our report Markets to Watch: Chicago with data provided by PitchBook. info.bridgebank.com/markets-to-wat… - 6 days pic.twitter.com/ATuhmDVuQLOur Technology Banking Group is proud to partner with Fluxx, the cloud platform used by world-class foundations and nonprofits to intelligently automate workflows, ensure compliance, improve operations and drive impact. pic.twitter.com/6wUsqMJnwyIn observance of Memorial Day, all Bridge Bank offices will be closed on Monday, May 31. pic.twitter.com/OPRe4C8wH6Join us and PitchBook, along with special guest Voyager Capital, tomorrow morning to discover key top-level trends that have defined VC deal-making in the Pacific Northwest. RSVP now to attend this virtual event. bit.ly/3odHXY4 - 4 weeks 1 day ago #pnw #venturecapital #virtualevent pic.twitter.com/aJsyVW4XFiKey top-level trends that have defined VC deal-making in the Pacific Northwest over the past several years can be found in our recently released report, Markets to Watch: Pacific Northwest. Download it now to learn more. bit.ly/2R6cYkB - 4 weeks 1 day ago #pnw #venturecapital pic.twitter.com/39v4LukI5zJoin us virtually for Markets to Watch: Pacific Northwest to discover how the PNW’s reputation for innovation has helped fresh capital flow into the VC ecosystem with commitments to new investment funds. RSVP today to attend and learn more. bit.ly/3odHXY4 - about 1 month 2 days ago pic.twitter.com/hoFdrqjYBcFunding for leading database software and cloudtech & DevOps segments bounced back in 2020, in the PNW, posting gains on deal count and aggregate deal value. Download our report, Markets to Watch: Pacific Northwest to learn more and read the analysis. bit.ly/2R6cYkB - about 1 month 3 days ago pic.twitter.com/OcWPQUF5QEOn May 19, our panel of experts will provide analysis and key insights into the VC ecosystem of the Pacific Northwest, which posted a record $5.4 billion in value for 2020. RSVP now to attend this informative, virtual event. bit.ly/3odHXY4 - about 1 month 4 days ago #pnw #venturecapitalThe Pacific Northwest’s VC ecosystem posted a record $5.4 billion in value for 2020. Download our report, Markets to Watch: Pacific Northwest to learn more and read the analysis. info.bridgebank.com/markets-to-wat… - about 1 month 5 days ago pic.twitter.com/HTrfF4UWCoWe would like to extend our congratulations to our client, Securly, for their recent acquisition by Golden Gate Capital. Comprised of parents, educators and technologists, Securly is the first and only provider of enterprise security for K-12 schools since 2013. pic.twitter.com/OoRHNh5coQOur Boston-based Technology Banking Group recently provided a growth capital term loan to Examity, a technology company concentrating in the online proctoring market. Read our press release to learn more. bit.ly/3eWeu0g - about 1 month 1 week agoLearn how liquidity surges are fueling reinvestment into life sciences ecosystems by downloading a complimentary copy of our report Life Sciences Markets to Watch. The report also contains analysis of trends in valuations and financing sizes and their implications. pic.twitter.com/mWrsT22dBZFind out how CytoSorbents delivered technology to calm the storm during the COVID-19 pandemic. Read more here: bit.ly/3e6F1su - about 1 month 2 weeks ago #lifesciences #bridgebank #cytosorbentsJoin us for Life Sciences Markets to Watch and discover how likely venture investment in life sciences will continue at a rapid pace with strong liquidity and rates of funding. bit.ly/3dwyk2C - about 1 month 2 weeks ago pic.twitter.com/0BFseH6AZrThe three major life sciences hubs in the U.S. set a record in venture capital invested in 2020. Download our complimentary report, Life Sciences Markets to Watch, to learn more and read the analysis. bit.ly/3gnq7Q9 - about 1 month 2 weeks ago pic.twitter.com/jtO8XiJOa7CytoSorbents is celebrating five years as a Bridge Bank client. Read more at bit.ly/3n26LBA - about 1 month 3 weeks ago #lifesciences #bridgebank #cytosorbentsOn May 5, our panel of experts will provide analysis and key insights into the three major life sciences ecosystems in the U.S., which set a record in venture capital invested in 2020. RSVP now to attend this virtual event. bit.ly/3dwyk2C - about 1 month 3 weeks ago pic.twitter.com/L2LpL5ooZuWith strong liquidity and rates of funding, it is likely that venture investment in the space will continue at a rapid pace. Download our complimentary report, Life Sciences Markets to Watch, to learn more and read the analysis. bit.ly/3gnq7Q9 - about 1 month 3 weeks ago pic.twitter.com/iH1LMoypkaOur #LifeSciences Group recently provided a term loan to Adarza Biosystems, developer of the ZIVA platform, a next-generation biomarker discovery and therapeutic research tool. pic.twitter.com/CR160SrQKbAustin’s VC ecosystem topped $2 billion in value for the third year running in 2020. Download our report, Markets to Watch: Austin, TX, to learn more and read the analysis. bit.ly/3sGCwly - about 2 months 4 days ago #Austin #venturecapital pic.twitter.com/75Kk4auvZdJoin us for Markets to Watch: Austin, TX to discover how the Austin VC ecosystem still secured a record $2.3 billion in aggregate value thanks in no small part to the its resilient enterprise tech sector. RSVP by clicking the link: bit.ly/3rzsUaZ - about 2 months 4 days ago pic.twitter.com/Ml7OkIKMS2Key top-level trends that defined VC deal-making in Austin last year can be found in our report, Markets to Watch: Austin, TX. The report also contains analysis of Austin’s banner year for exit value creation. Download it now: bit.ly/3sGCwly - about 2 months 7 days ago pic.twitter.com/ZQzJ6GiCtwJoin us and PitchBook, along with special guest Silverton Partners to discover key top-level trends that have defined VC deal-making in Austin. RSVP by clicking this link bit.ly/3rzsUaZ - about 2 months 1 week ago pic.twitter.com/M3ithiqhjjOn April 14, our panel of experts will provide analysis and key insights into Austin’s VC ecosystem, which topped $2 billion in value for the third year running. RSVP now to attend this informative event. bit.ly/3rzsUaZ - about 2 months 1 week ago #Austin #venturecapital #technology #innovation pic.twitter.com/gzRc4qJELoAustin’s VC ecosystem topped $2 billion in value for the third year running in 2020. Download our report, Markets to Watch: Austin, TX, to learn more and read the analysis. bit.ly/3sGCwly - about 2 months 2 weeks ago #Austin #venturecapital pic.twitter.com/ltpq7r20P8Join us for Markets to Watch: Austin, TX to discover how the Austin VC ecosystem still secured a record $2.3 billion in aggregate value thanks in no small part to the its resilient enterprise tech sector. RSVP by clicking the link: bit.ly/3rzsUaZ - about 2 months 2 weeks ago pic.twitter.com/ztR0lKmyzEOur Technology Banking Group recently provided a venture debt facility and working capital line of credit to Step. To learn more, read their recent press release. step.com/press/step-sur… - about 3 months 1 week ago #bridgebank #step #fintech pic.twitter.com/MzAtQGOTu9We are pleased to announce that we have launched Bridge Bank Gateway, a new digital paying agent platform that simplifies and accelerates complex M&A transactions. Read our recent press release to learn more. westernalliancebancorporation.com/bridge-bank-ho… - about 3 months 2 weeks agoWe would like to welcome Alex Tsarnas to the Bridge Bank team. Alex will be leading our newly established banking group, Business Escrow Services. Read our press release to learn more. westernalliancebancorporation.com/bridge-bank-ho… - about 3 months 3 weeks ago #mergersacquistions #privateequity #bridgebankIn observance of Presidents' Day, all Bridge Bank offices will be closed on Monday, February 15. #PresidentsDay pic.twitter.com/6eMQQeNJipOur team of asset-based lending professionals is growing! Read more about it here: westernalliancebancorporation.com/bridge-bank-ho… - about 4 months 5 days ago #assetbasedlending #bridgebankOur Life Sciences Group recently provided a Term Loan to Bolder Surgical, a medical device company focused on commercializing mini-laparoscopic surgical devices aimed at improving and enabling laparoscopic procedures for pediatric patients. #lifesciences #medicaldevices pic.twitter.com/hKgRzmVhaZ“Not everybody can be famous but everybody can be great because greatness is determined by service… You only need a heart full of grace and a soul generated by love.” ~ Dr. Martin Luther King Jr. In observance of MLK Day, all Bridge Bank offices will be closed on Mon. 1/18. #MLK pic.twitter.com/rBAo4INJXBOur Technology Banking group recently provided a growth capital term loan to Funraise, a software company that provides a state-of-the-art fundraising platform, saving nonprofit organizations time and resources spent on data management. pic.twitter.com/StETyssfLe