Average and Median Age by Financial Technology Category – Q4 2016

The following graph shows average and median age in the Financial Technology sector. The graphic includes data through October 2016.

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Average and Median Age by FinTech Category
The above graph summarizes the average and median age of companies in each Financial Technology category. The Payments Backend category has the highest average age at 9 years, and the Banking Infrastructure category has the highest median age at 10 years.

We are currently tracking 2045 Financial Technology companies in 16 categories across 59 countries, with a total of $57.8B in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Funding Trends – Q4 2016

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Total Financial Technology Funding by Year

The above graph summarizes the total funding raised by Financial Technology startups for each year. 2015 is the best year so far with over $15.6B in funding. 2016 comes in at second place with around $15.2B raised to date.

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Financial Technology Funding by Vintage Year
The above graph summarizes the total amount of funding raised by Financial Technology companies founded in a certain year. Companies founded in 2011 have raised the most funding at around $7.3B, followed by those founded in 2012 which have raised about $6.1B.

We are currently tracking 2015 Financial Technology companies in 16 categories across 59 countries, with a total of $56.1B in funding. Click here to learn more about the full Financial Technology landscape report and database.

Where in the World are Financial Technology Startups? – Q4 2016

The analyses below summarize where Financial Technology innovations are occurring.

Fintech Startup Count by Country

The above map shows the number of Fintech companies located in different countries. The United States ranks as the top country with around 1,000 companies.

fintech-startup-funding-by-country

The above map shows the amount of total Fintech startup venture capital funding in different countries. The United States has the most VC funding at around $31B.

We are currently tracking 2,001 Financial Technology companies in 16 categories across 59 countries, with a total of $55B in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Category Innovation Quadrant – Q4

FinTech Category Innovation Quadrant
FinTech Category Innovation Quadrant

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different FinTech categories and how they compare with one another.

  • Heavyweights: Categories with high average funding and high average age. These categories are comprised of companies that have reached maturity with significant financing.
  • Established: Categories with low average funding and high average age. These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: Categories with high average funding and low average age. These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: Categories with low average funding and low average age. These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the FinTech categories represented in the above Innovation Quadrant are as follows:

Banking Infrastructure: Solutions that improve the operations of financial institutions. Examples include API integration with banks, white-label mobile solutions, and big-data analytics.

Business Lending: New ways for companies to raise debt financing and have their credit risk assessed. Examples Include peer-to-peer lending platforms, asset-based lines of credit, micro-financing, and big data risk analytics.

Consumer and Commercial Banking: New ways for consumers and SMBs to interface with banking services. Examples include Internet-only banking services and virtual credit cards.

Consumer Lending: New ways for consumers to obtain personal loans and have their credit risk assessed. Examples includes peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services.

Consumer Payments: Payment companies centered around issuers and consumers. Examples include mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.

Crowdfunding: New ways for companies to raise non-equity and non-debt financing. Examples include crowdfunding platforms for products, social causes, and creative projects.

Equity Financing: News ways for private companies to raise capital in exchange for equity and for investors to participate in private securities markets. Examples include crowdsourcing platforms and secondary market solutions.

Financial Research and Data: Information services that enable investors to make better investment decisions. Examples include news, research, and data sources.

Financial Transaction Security: New ways for companies to secure transactions, authenticate users, and prevent fraud. Examples include identify verification, big data analytics, and fraud detection algorithms.

Institutional Investing: New ways for wealth managers, hedge fund managers, and professional traders to manage their portfolios and optimize returns. Examples include tools for stock sentiment analysis, alternative investment platforms, and algorithmic trading tools.

International Money Transfer: Companies that allow businesses and individuals to send money abroad easily and cheaply. Examples include digital-only remittances, mobile top-off services, and gift cards.

Payments Backend and Infrastructure: Payment companies centered around issuers/acquirers and the infrastructure enabling payments. Examples include payment solutions for e-commerce merchants, online payment gateways, ACH, direct deposits, and payment back-ends for mobile apps.

Personal Finance: New ways for consumers to manage their personal finances. Examples include tools for tracking expenses, managing a budget, addressing wrongful credit card charges, and optimizing credit card rewards.

Point of Sale Payments: Payment companies centered around acquirers, providing physical payment solutions for brick-and-mortar businesses and organizations. Examples include mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Retail Investing: New ways for consumers to invest in various securities. Examples include theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.

Small and Medium Business Tools: Tools that help small and medium sized businesses manage their finances. Examples include tools for taxes, payroll, invoicing, and accounting.

We are currently tracking 1998 Financial Technology companies in 16 categories across 59 countries, with a total of $54.7 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Funding by Type – Q4

The following two graphs summarize the types of funding going into the Financial Technology space.

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FinTech Funding by Type by Year – Funding Amount

The graph above shows the total amount of VC funding broken out by type. In 2016, Series B funding has accounted for a substantial amount of total funding, with Series C and Late Stage funding coming in at second. In 2015, all types of VC funding accounted for approximately the same amount, with the exception of Seed funding.

FinTech Funding by Type by Year - Event Count
FinTech Funding by Type by Year – Event Count
The graph above shows the total count of funding events broken out by type. The general trend over the past few years has been a larger number of early stage funding events, such as Seed, Series A, and Series B funding events–and a diminishing number of events in the later stages.
We are currently tracking 1990 Financial Technology companies in 16 categories across 59 countries, with a total of $54.6 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.

Venture Investing In Financial Technology – Q4 2016

Venture Investing in Financial Technology

The above graph compares the total venture funding in each Financial Technology category to the number of companies in the category. The Consumer Lending category leads the sector, coming in at over $16B in funding and about 260 startups. The Payments Backend category follows with around $10.5B in funding, and Personal Finance has 195 companies.

We are currently tracking 1,952 Financial Technology companies in 16 categories across 59 countries, with a total of $54 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Market Overview – Q4 2016

Financial Technology Market Overview Map

The above sector map organizes the Financial Technology sector into 16 categories and shows a sampling of companies in each category.

Banking Infrastructure: Solutions that improve the operations of financial institutions. Examples include API integration with banks, white-label mobile solutions, and big-data analytics.

Business Lending: New ways for companies to raise debt financing and have their credit risk assessed. Examples Include peer-to-peer lending platforms, asset-based lines of credit, micro-financing, and big data risk analytics.

Consumer and Commercial Banking: New ways for consumers and SMBs to interface with banking services. Examples include Internet-only banking services and virtual credit cards.

Consumer Lending: New ways for consumers to obtain personal loans and have their credit risk assessed. Examples includes peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services.

Consumer Payments: Payment companies centered around issuers and consumers. Examples include mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.

Crowdfunding: New ways for companies to raise non-equity and non-debt financing. Examples include crowdfunding platforms for products, social causes, and creative projects.

Equity Financing: News ways for private companies to raise capital in exchange for equity and for investors to participate in private securities markets. Examples include crowdsourcing platforms and secondary market solutions.

Financial Research and Data: Information services that enable investors to make better investment decisions. Examples include news, research, and data sources.

Financial Transaction Security: New ways for companies to secure transactions, authenticate users, and prevent fraud. Examples include identify verification, big data analytics, and fraud detection algorithms.

Institutional Investing: New ways for wealth managers, hedge fund managers, and professional traders to manage their portfolios and optimize returns. Examples include tools for stock sentiment analysis, alternative investment platforms, and algorithmic trading tools.

International Money Transfer: Companies that allow businesses and individuals to send money abroad easily and cheaply. Examples include digital-only remittances, mobile top-off services, and gift cards.

Payments Backend and Infrastructure: Payment companies centered around issuers/acquirers and the infrastructure enabling payments. Examples include payment solutions for e-commerce merchants, online payment gateways, ACH, direct deposits, and payment back-ends for mobile apps.

Personal Finance: New ways for consumers to manage their personal finances. Examples include tools for tracking expenses, managing a budget, addressing wrongful credit card charges, and optimizing credit card rewards.

Point of Sale Payments: Payment companies centered around acquirers, providing physical payment solutions for brick-and-mortar businesses and organizations. Examples include mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Retail Investing: New ways for consumers to invest in various securities. Examples include theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.

Small and Medium Business Tools: Tools that help small and medium sized businesses manage their finances. Examples include tools for taxes, payroll, invoicing, and accounting.

We are currently tracking 1,927 Financial Technology companies in 16 categories across 58 countries, with a total of $54 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.