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.

Venture Investing in Insurance Technology

The following infographic compares total venture funding in Insurance Technology to the number of companies in each category.  Which Insurance Technology categories do you think have the most traction and potential for growth? At Venture Scanner, we are currently tracking over 519 Insurance Technology companies in 13 categories across 47 countries, with a total of $3.87 Billion in funding. To see the full list of 519 Insurance Technology companies, contact us using the form on www.venturescanner.com.

Insurance Tech VC Investing Graph

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.

Which Insurance Technology Category is Most Mature?

The following infographic summarizes our Insurance Technology sector by median age of each category. The Life & Home Insurance category has the highest median age at 18 years, followed by Reinsurance at 16 years. Each category in our Insurance Technology scan was created by our dedicated team of analysts who specialize in helping you understand the complex startup ecosystem. We are currently tracking over 519 companies in 13 categories across 48 countries, with a total of $3.88 Billion in funding. To see the full list of 519 Insurance Technology companies, contact us using the form on www.venturescanner.com.

Insurance Tech Median Age

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.

Number of Investments by Top Real Estate Technology Investors

The following infographic summarizes the number of companies invested by the top Real Estate Technology investors. You could see that Y Combinator is in the lead by having invested in 18 companies, followed by Accel Partners and 500 Startups which each invested in 16 companies. At Venture Scanner, we are currently tracking over 659 Real Estate Technology companies in 9 categories across 45 countries, with a total of $10.26 Billion in funding. To see the full list of 659 Real Estate Technology companies, contact us using the form on www.venturescanner.com.

Real Estate investor count

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.

Real Estate Technology Company Founding Date Distribution

The following infographic summarizes the founding date distribution of Real Estate Technology companies to show the percentage of Real Estate Technology companies that were founded within a specific time period. It shows that the founding of Real Estate Technology companies reached its peak from 2013-Present, with 28% of the companies being founded during this period. Company founding was at the lowest in 2001-2002, with only 2% of the companies being founded during those two years. We are currently tracking over 658 companies in 9 categories across 46 countries, with a total of $10.25 Billion in funding. To see the full list of 658 Real Estate Technology companies, contact us using the form on www.venturescanner.com.

Real Estate Founding Dates

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.

 

Average Funding Per Insurance Technology Category

The following infographic summarizes the average funding for each Insurance Technology category to show which Insurance Technology categories are the best funded. It shows that Product Insurance is in the lead with $63.24 Million funding per company, followed by Auto Insurance with $58.95 Million per company. Please note that this data is based only on Insurance Technology companies that have publicly available funding data. We are currently tracking over 511 companies in 13 categories across 47 countries, with a total of $3.74 Billion in funding. To see the full list of 511 Insurance Technology companies, contact us using the form on www.venturescanner.com.

Insurance Tech Average Funding

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.