Insurance Technology Startup Market Highlights  – Q3 2017

Here is our Q3 2017 summary report on the Insurance Technology startup sector. The following report includes a startup landscape overview, graphical trends with insights, and recent funding and exit events.

We are currently tracking 1450 Insurance Technology companies in 14 categories across 61 countries, with a total of $19.5 Billion in funding. Click here to learn more about the full Insurance Technology market report.

Blockchain Technology Exits by Category and by Year – Q3 2017

The following graphs highlight the exit activity in the Blockchain Technology sector. The graphics include data through August 2017.

Blockchain Technology Exit Activity by Category
Blockchain Technology Exit Activity by Category

The above graph summarizes the number of exits (acquisitions and IPOs) in each Blockchain Technology category. The Bitcoin Exchanges category leads the sector with 10 acquisitions. The Bitcoin Data category is the runner-up with 8 acquisitions.

Blockchain Technology Exit Activity by Year
Blockchain Technology Exit Activity by Year

The above graph summarizes the number of exits (acquisitions and IPOs) in the Blockchain Technology sector by year. 2016 leads the sector with 14 acquisitions and 1 IPO. 2015 is the runner-up with 13 acquisitions and 1 IPO.

We are currently tracking 970 Blockchain Technology companies in 12 categories across 74 countries, with a total of $4.5 Billion in funding. Click here to learn more about the full Blockchain Technology market report.

Where in the World Are Transportation Technology Startups? – Q3 2017

The analyses below summarize where Transportation Technology innovations are occurring. The graphic includes data through August 2017.

Transportation Technology Company Count by Country
Transportation Technology Company Count by Country

The above map shows the number of Transportation Tech companies located in different countries. The United States ranks as the top country with around 550 companies.

Transportation Technology VC Funding by Country
Transportation Technology VC Funding by Country

The above map shows the amount of total Transportation Tech startup venture capital funding in different countries. The United States has the most VC funding at around $40B.

We are currently tracking 1189 Transportation Technology companies in 17 categories across 66 countries, with a total of $94.9B in funding. Click here to learn more about the full Transportation Technology market report.

Age by Blockchain Technology Category – Q3 2017

The following graph shows the average age by category in the Blockchain Technology sector. The graphic includes data through August 2017.

Age by Category in Blockchain Technology
Age by Category in Blockchain Technology

The above graph summarizes the average age of companies in each Blockchain Technology category. The Bitcoin Trust category has the highest average age at around 5.5 years. The Bitcoin Infrastructure category is the runner-up with an average age of 5.2 years. On the other hand, Blockchain Innovations is the youngest Blockchain Technology category with an average age of 3.6 years.

We are currently tracking 970 Blockchain Technology companies in 12 categories across 74 countries, with a total of $4.5 Billion in funding. Click here to learn more about the full Blockchain Technology market report.

Retail Technology Companies Founded by Year – Q3 2017

The following graph shows the founding year distribution in the Retail Technology sector. The graphic includes data through September 2017.

Retail Technology Companies Founded by Year
Retail Technology Companies Founded by Year

The above graph summarizes the number of Retail Technology companies founded in a certain year. 2012 ranks at the top with around 242 companies founded in that year alone. 2011 is the runner-up with 224 companies founded in that year.

We are currently tracking 1673 Retail Technology companies in 22 categories across 58 countries, with a total of $54.5 Billion in funding. Click here to learn more about the full Retail Technology market report.

Fintech Sector Maturing in 2017

Financial Technology (fintech) has seen a lot of venture capital funding over the past few years. How have its funding trends evolved over time? Through the insights derived from our fintech research platform, we conclude that the fintech sector is maturing.

We have come to this conclusion from the following four takeaways:

  • Overall fintech funding trends are stable
  • Fintech investor interest is constant
  • Fintech funding has shifted to mid- and late-stage event
  • The average fintech funding size is growing

We will illustrate these takeaways with a series of graphics to show that the sector is maturing.

Fintech Funding Relatively Stable in 2017

We will start off by examining the fintech funding trends over the years. Let’s look at the annual fintech funding amount stacked by quarter.

Fintech Funding Amount by Quarter
Fintech Funding Amount by Quarter

As we can see from the graphic, fintech funding in the first three quarters of 2017 is slightly down relative to 2016. In fact, it’s 92% of the funding in Q1-Q3 2016. Therefore we expect to finish off the year more or less on par with last year.

We have seen that funding trends are steady, but what about investor appetite?

Fintech Investor Interest Remains Constant in 2017

Let’s now look at the number of fintech investors who participated in each investment to see how investor activity has evolved over time.

Fintech Investor Activity by Quarter
Fintech Investor Activity by Quarter

The above graphic shows that fintech investor participation in the first three quarters of 2017 is slightly higher than 2016. It grew by 2% from the investor participation in Q1-Q3 2016. This implies the sector will end the year slightly up or flat year-over-year in fintech investor participation from 2016 to 2017.

We have seen that overall funding amounts and investor activity have remained generally flat, but what about the stages of investment?

Fintech Funding Shifted to Mid- and Late-Stage Events

Let’s now take a deep dive and analyze fintech investors’ behavior in detail. Below are the Fintech Funding Amount by Round and Funding Event Count by Round graphics. The first graphic shows the total amount of funding that went into a specific funding round (such as Seed or Series A), while the second graphic shows the total number of funding events for a specific round.

Fintech Funding Amount by Round in Recent Quarters
Fintech Funding Amount by Round in Recent Quarters

The analysis above shows that Seed funding saw a 56% drop and Series A saw a 45% drop from Q2 2017 to Q3 2017. However, fintech funding amounts for later stage events grew from the previous quarter. Series B funding amount grew by 200% and Series C grew by 40%.

Based on the above, we can conclude that fintech funding has shifted from early-stage to mid- and late-stage funding. Let’s see if the Funding Event Count by Round graphic reinforces this conclusion.

Fintech Funding Count by Round in Recent Quarters
Fintech Funding Count by Round in Recent Quarters

We see that Seed and Series A rounds both saw a significant drop in funding events over the past quarter as well. Seed round events saw a 49% drop and Series A events saw a 25% drop from Q2 2017 to Q3 2017. In fact, the decline in Seed and Series A funding events appears to be a trend over the past few quarters.

On the other hand, Series B and later stage funding events have seen growth. Series B events grew by 82% and Series C events grew by 45% from Q2 2017 to Q3 2017.

The above data indicates that fintech investment has moved to later-stage ventures.

Fintech funding and investor activity have plateaued and the funding has shifted to mid- and late-stage. What about each individual investment deal size?

Average Fintech Funding Deal Size Growing in 2017

If the shift of fintech funding from early-stage to later-stage events indicates that the sector is maturing, we would also expect the average deal size to be growing. This is because as a sector matures, the winners would need larger capital infusions to scale.

Fintech Average Funding Event Size Over Time
Fintech Average Funding Event Size Over Time

This graphic does in fact indicate that the average fintech funding amounts have grown significantly over the past few years. The trendline shows that from Q3 2011 to Q3 2017 the average deal size has grown by approximately 700%. This consistent upward trend in average deal size indicates that the fintech sector is indeed maturing.

Conclusion: Fintech Sector Now Maturing

In summary, we’ve seen that the overall fintech funding and investor interest has remained steady. At the same time, the funding has shifted from early-stage events to later-stage events. Moreover, the average fintech funding amount has grown consistently year-over-year. These takeaways lead us to conclude that the fintech sector is indeed maturing. It’ll be interesting to see if this trend continues into 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Financial Technology research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Age by Category in Transportation Technology – Q3 2017

The following graph shows average and median age in the Transportation Technology sector. The graphic includes data through August 2017.

Transportation Technology Age by Category
Transportation Technology Age by Category

The above graph summarizes the average age and median age of companies in each Transportation Technology category. The V2V Communications, Intelligent Transit, and Infotainment categories all have the highest average age at around 21 years. The V2V Communications category also has the highest median age at around 19 years. On the other hand, the Auto Ownership category is the youngest Transportation Technology category with an average age of around 5 years and a median age of around 4 years.

We are currently tracking 1181 Transportation Technology companies in 17 categories across 66 countries, with a total of $92.1 Billion in funding. Click here to learn more about the full Transportation Technology market report.