Financial Technology Report Highlights – Q2 2019

Here is our Q2 2019 summary report on the financial technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Financial Technology Sector Overview – Q1 2019

This blog post examines the different components of the financial technology (fintech) ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Consumer Lending Is The Largest Financial Technology Category

Let’s start off by looking at the Sector Map. We have classified 2,665 fintech startups into 16 categories. They have raised $142B from 3,996 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Financial Technology Logo Map
Financial Technology Logo Map

We see that Consumer Lending is the largest category with 358 companies. These companies offer new ways for consumers to obtain personal loans and have their credit risks assessed. They include peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services. Some example companies are SoFi, CommonBond, Avant, and Lufax.

Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.

The Pioneers Quadrant Has the Most Financial Technology Categories

Our Innovation Quadrant divides the fintech categories into four different quadrants.

Financial Technology Innovation Quadrant
Financial Technology Innovation Quadrant

We see that the Pioneers quadrant has the most number of fintech categories at 11, accounting for 69% of all fintech categories. The Payments Backend category has the highest average age, and the Consumer Payments category has the highest average funding. On the other hand, the Crowdfunding and Equity Financing categories are low on both average funding and age.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Consumer Lending Leads Financial Technology In Number of Investors

The financial technology (fintech) industry has seen 3981 investors and $141B total all time funding. Let’s analyze which fintech categories have the most number of investors actively financing the startups. The graphic below highlights fintech categories based on the number of investors in each category.

Financial Technology Investors Per Category
Financial Technology Investors Per Category

As the graphic demonstrates, Consumer Lending has the highest number of investors at 1110, with Business Lending following behind at 848. Consumer Lending companies offer new ways for consumers to obtain personal loans and have credit risk assessed. Business Lending companies do the same for corporations. In addition, the average number of investors across all fintech categories is 538.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Financial Technology Average Funding Event Size Is On An Upward Trend

For this quarter’s funding analysis, let’s examine how average funding event sizes in the financial technology (fintech) sector are evolving. The graphic below shows the fintech average funding event size over time by quarter.

Financial Technology Averaging Fund Event Size
Financial Technology Averaging Fund Event Size

As the graphic demonstrates, fintech average funding event size in Q1 2019 was at $54M, which dipped by 4% from the $56M last quarter. The average funding size has been on a strong upward trend, with the average funding size last quarter around 4 times larger than it was 5 years ago. The top three funding events in Q1 2019 include a $1.3B round from Sea, a $750M round from CommonBond, and a $440M round from OakNorth.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Financial Technology Report Highlights  – Q1 2019

Here is our Q1 2019 summary report on the financial technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Fintech Exit Activity Reached Record Year in 2018

Now that 2018 is complete, let’s see how exit activity for financial technology (fintech) compares to previous years. The graphic below shows the total annual fintech exit events over time.

FinTech Exits Over Time
FinTech Exits Over Time

As the graphic demonstrates, fintech exit activity had the highest year on record in 2018 with 89 exit events. It represents a 2% increase from the previous year’s exit activity. In addition, fintech exit activity grew at a CAGR of 41% over the past 5 years. It’ll be interesting to see if its exit activity will drop in 2019 or reach even higher levels.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Fintech Funding Saw Explosive Growth in 2018

With 2018 now behind us, let’s examine how funding in financial technology (fintech) compares to previous years. The graphic below shows the total annual fintech funding amounts over time.

FinTech Funding Over Time
FinTech Funding Over Time

As the graphic demonstrates, 2018 experienced the highest fintech funding on record at $41B. It represents a whopping 78% increase from the previous year’s funding. In addition, fintech funding grew at a CAGR of 61% from 2013 to 2018. We’re excited to see if its funding can reach an even higher level in the new year.

To learn more about our complete financial technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.