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 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.

FinTech Q1 Update in 15 Visuals

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We at Venture Scanner are tracking 1,379 FinTech companies across 16 categories, with a combined funding amount of $33 Billion. The 15 visuals below summarize the current state of Financial Technology.

1. Financial Technology Market Overview

Slide1

We organize Financial Technology into the 16 categories listed below:

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.

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.

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.

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

Payments Backend and Infrastructure: Payment companies centered around 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.

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).

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.

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.

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.

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

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.

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

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.

International Money Transfer (Remittances): 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.

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

2. Company Count by FinTech Category

Slide2

The above graph summarizes the number of companies in each FinTech category to show which categories are dominating the current market. The Consumer Lending category is leading the way with 198 companies, followed by the Personal Finance and Business Lending categories, each with 148 companies.

3. Funding by FinTech Category

Slide3

The above graph summarizes the total amount of funding in each FinTech category. The Consumer Lending category is leading the market with over $12B in total funding, which is 1.5X the total funding of the second highest category, Business Lending.

4. Venture Investing in FinTech

Slide4

The above graph compares the total venture funding in each FinTech category to the number of companies in the category. The Consumer Lending category is leading in both stats with over $12B in funding and 198 companies. Business Lending is the runner-up with $8B funding, and has the second-highest company count along with Personal Finance (148).

5. FinTech Total Funding by Year

Slide5

The above graph summarizes the total funding raised by FinTech companies each year. 2015 was the best year in FinTech funding with a total of $12B raised, which is 1.5X the amount of funding raised in 2014 ($8B).

6. Average Funding by FinTech Category

Slide6

The above graph summarizes the average company funding in each FinTech category. The Consumer Lending category leads the market with $100M funding per company, followed by the Business Lending category at a close second with $92M funding per company.

7. Average Age by FinTech Category

Slide7

The above graph summarizes the average age of companies in each FinTech category. Banking Infrastructure ranks as the most mature FinTech category with an average age of 8 years per company, which is twice the average age as the least mature category, Equity Financing (4 years per company).

8. Median Age by FinTech Category

Slide8

The above graph summarizes the median age of companies in each FinTech category. Banking Infrastructure ranks as the most mature FinTech category with a median age of 7 years per company, followed by Financial Security and Business Payments, each with a median age of 6 years per company.

9. FinTech Company Count by Country

Slide9

The above map shows the number of FinTech companies located in different countries. The United States ranks as the top country with 756 FinTech companies, with the United Kingdom at a distant second with 161.

10. FinTech VC Funding by Country

Slide10

The above map shows the amount of FinTech venture capital funding in different countries. The United States has the most FinTech VC funding at $13B, followed by the United Kingdom at $6B.

11. FinTech Companies Founded by Year

Slide11

The above graph summarizes the number of FinTech companies founded in a certain year. 2012 ranks as the top year with 186 FinTech companies founded, followed by 2013 with 158 companies founded.

12. FinTech Funding by Vintage Year

Slide12

The above graph summarizes the total amount of funding raised by the FinTech companies founded in a certain year. FinTech companies founded in 2011 have raised the most funding at $6.2B, followed by those founded in 2012 with $4.6B funding to date.

13. FinTech Headcount Distribution

Slide13

The above graph summarizes the percentage of FinTech companies with a certain employee headcount range. Companies with 1–50 employees make up 73% of the market.

14. Number of FinTech Investments by Selected Investors

Slide14

The above graph summarizes the total number of investment rounds FinTech investors participated in. Accel outperform all of its peers, having made 79 investments into FinTech companies. This is almost 2X the number of investments made by the runner-up Sequoia Capital with 45 investments.

15. Number of FinTech Companies Backed by Selected Investors

Slide15

The above graph summarizes the number of unique FinTech companies funded by selected investors. Accel takes the top spot by having invested in a total of 54 unique FinTech companies, which is almost 1.5X the number of companies invested by the runner-up, Y Combinator (37 companies).

As FinTech continues to grow, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.

Venture Scanner is your platform for startup landscapes, data, and research. If you would like access to the full FinTech landscape and dataset, visit www.venturescanner.com/financial-technology or reach out to info@venturescanner.com.

FinTech At a Glance

The following infographic summarizes the FinTech market and all of its key metrics at a glance. You could see that it has 17 categories, 1379 companies, and an average funding of $44 Million per company. At Venture Scanner, we are currently tracking over 1379 FinTech companies in 17 categories across 55 countries, with a total of $33.1 Billion in funding. To see the full list of 1379 FinTech companies, contact us using the form on www.venturescanner.com.

Fintech one-sheeter

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

The State of Financial Technology in Six Visuals

We cover many emerging markets in the startup ecosystem, Financial Technology being one of them. At this time, we are tracking 1,170 FinTech companies across 18 categories, with a combined funding amount of $20.0B. To see the full list of 1,170 FinTech startup, contact us using the form on www.venturescanner.com.

The six FinTech visuals below help make sense of this dynamic market:

  1. Market Overview: Breakdown of FinTech company list into categories.
  2. Number of Companies Per Category: Bar graph summarizing the number of companies in each FinTech category.
  3. Average Funding By Category: Bar graph that summarizing average company funding per FinTech category.
  4. Venture Funding in FinTech: Graph comparing total venture funding in FinTech to the number of companies in each category.
  5. Global Breakdown of FinTech: Heat map indicating where FinTech exist.
  6. Median Age of FinTech Categories: Bar graph of each FinTech category by median age.

1. Financial Technology Market Overview

fintechmap

In order to organize Financial Technology we broke it down into 18 distinct categories listed below. The logos in the above image do not show all 1,170 logos.

Lending (Consumer): New ways for consumers to obtain personal loans. Includes peer-to-peer lending for education loans, housing loans, payday lending, and micro-financing. Also, includes companies that provide big data analytics and consumer credit scoring services.

Lending (Consumer): New ways for companies to raise debt financing. Includes small business loan underwriting, provision of working capital, peer-to-peer lending platforms, asset-based lines of credit (i.e. borrow against unpaid invoices), and micro-financing. Also, includes companies that provide big data risk analytics and business credit information.

Payments (Acquirer — Online/ Electronic): Payment companies centered around acquirers; provides online payment solutions for e-commerce merchants; includes online payment gateways, ACH, direct deposits, payments back-end for mobile apps.

Payments (Acquirer — Point-of-Sales): Payment companies centered around acquirers; provides physical payment solutions for brick-and-mortar businesses and organizations; includes mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Payments (Issuer/ Consumer): Payment companies centered around issuers and consumers; includes mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.

Small Business/ Non-Profit Organization Tools: Tools that help small & medium businesses manage their finances — including tax, payroll, invoicing, and accounting tools. Also includes tools for non-profit organizations.

Personal Finance: New ways for consumers to manage their personal finances — including tools to track expenses, clear debt, and save money. Also includes tools that address wrongful credit card charges, tools that optimize for credit card rewards, and insurance comparison tools.

Retail Investment: New ways for the consumers to invest — including theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.

Remittances: Companies that allow consumers to send money abroad easily and cheaply. Money can be sent in the form of cash or gift cards.

Equity Financing: News ways for private companies to raise capital in exchange for equity and for investors to participate in private securities markets — including crowdsourcing platforms and secondary markets.

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

Consumer Banking: New ways for consumers to interface with banking services — including Internet-banking-only services and virtual credit cards.

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

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

Security, Authentication, and Fraud: Includes companies that create products in the area of security, authentication (e.g. identify verification), fraud detection/prevention (e.g. payments fraud, loan fraud).

Crowdfunding (Non-Investment): Non-equity, non-lending/debt crowdfunding platforms for products, social causes, and creative projects. Also includes civic crowdfunding platforms and platforms that give backers a cut of royalty payments from product sales.

2. Number of Companies Per Category

FinTech Graphic 6-4

The bar graph above summarizes the number of companies in each FinTech category to show which are dominating the current market. Currently, lending and payments lead the way.

3. Average Funding By Category

fintech3

The bar graph above summarizes the average company funding per FinTech category. The average funding of companies in the Small Business Tools category is currently highest. Because Small Business Tools is a relatively small category, this high average may be explained, in part, by Zenefits’ $583 million in funding.

4. Venture Investing in FinTech

fintech4

The graph above compares total venture funding in FinTech to the number of companies in each category. As you can see, lending and payments lead the way.

5. Global Breakdown of FinTech

fintech5

Our updated heat map indicates where FinTech startups exist across 54 countries. Currently, the United States is leading the way with 680 companies. The United Kingdom is in second with 148 companies. The cities leading the pack are San Francisco with 144 companies, and London with 121 companies.

6. Median Age of FinTech Categories

fintech6

The bar graph above summarizes FinTech by median age of category. Of all FinTech categories, Banking Infrastructure currently has the highest median at 8 years while Crowdfunding has the lowest median at 3 years.

As FinTech continues to grow, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

Making Sense of the FinTech Startup Ecosystem

At this time, we are tracking 1,425 FinTech companies across 19 categories, with a combined funding amount of $30.37B. These are relatively new companies that either serve existing pieces of the financial system or develop alternatives to those pieces. It includes B2B and B2C companies.

See the breakdown in sector funding and the most updated market information at http://insights.venturescanner.com/venture-scanner-sector-maps/.

Fintech Map

Lending (Consumer): New ways for consumers to obtain personal loans. Includes peer-to-peer lending for education loans, housing loans, payday lending, and micro-financing. Also, includes companies that provide big data analytics and consumer credit scoring services.

Lending (Business): New ways for companies to raise debt financing. Includes small business loan underwriting, provision of working capital, peer-to-peer lending platforms, asset-based lines of credit (i.e. borrow against unpaid invoices), and micro-financing. Also, includes companies that provide big data risk analytics and business credit information.

Payments (Acquirer — Online/ Electronic): Payment companies centered around acquirers; provides online payment solutions for e-commerce merchants; includes online payment gateways, ACH, direct deposits, payments back-end for mobile apps.

Payments (Acquirer — Point-of-Sales): Payment companies centered around acquirers; provides physical payment solutions for brick-and-mortar businesses and organizations; includes mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Payments (Issuer/ Consumer): Payment companies centered around issuers and consumers; includes mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.

Small Business/ Non-Profit Organization Tools: Tools that help small & medium businesses manage their finances — including tax, payroll, invoicing, and accounting tools. Also includes tools for non-profit organizations.

Personal Finance: New ways for consumers to manage their personal finances — including tools to track expenses, clear debt, and save money. Also includes tools that address wrongful credit card charges, tools that optimize for credit card rewards, and insurance comparison tools.

Retail Investment: New ways for the consumers to invest — including theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.

Remittances: Companies that allow consumers to send money abroad easily and cheaply. Money can be sent in the form of cash or gift cards.

Equity Financing: News ways for private companies to raise capital in exchange for equity and for investors to participate in private securities markets — including crowdsourcing platforms and secondary markets.

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

Consumer Banking: New ways for consumers to interface with banking services — including Internet-banking-only services and virtual credit cards.

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

Individualized Insurance: Companies that optimize insurance costs, such as comparison websites and technologies that allow for personalized quotes (such as Pay As You Drive automotive telematics).

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

Security, Authentication, and Fraud: Includes companies that create products in the area of security, authentication (e.g. identify verification), fraud detection/prevention (e.g. payments fraud, loan fraud).

Crowdfunding (Non-Investment): Non-equity, non-lending/debt crowdfunding platforms for products, social causes, and creative projects. Also includes civic crowdfunding platforms and platforms that give backers a cut of royalty payments from product sales.

Financial Technology Investments: Venture capital funds, corporate venture funds, and accelerators focused on investing in financial technology startups.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.