2016-05-25-KPMG-The_Pulse_of_Fintech_–_2015_in_review_85页_3mb

2015 Fintech Venture Funding Summary

Core Content Overview

The Pulse of Fintech, 2015 in Review report provides a comprehensive analysis of global fintech venture funding trends in 2015. It highlights the significant growth in fintech investment, the role of corporate partnerships, and the emergence of key sub-sectors such as payments, lending, and blockchain. The report also examines regional differences and challenges facing the industry.

Key Statistics

• Total Global Fintech Funding in 2015: $13.8 billion, up 106% from 2014 and over double the 2011 total.
• Total Deals in 2015: 653, representing an 11% increase from 2014 and 119% from 2011.
• VC-backed Fintech Funding Share: 73% of overall fintech investment in 2015, up from 55% in 2014.

Global Trends

• Fintech's Mainstream Entry: 2015 marked a turning point where fintech moved from being a niche sector to a mainstream investment area.
• Mega-rounds Dominated Funding: The number of $50M+ deals increased dramatically, with 60 such deals in 2015 compared to fewer than 15 in 2011–2013.
• Deal Activity Declined in Q4'15: Despite a drop in deal volume, funding in Q4 was still supported by major mega-rounds.
• Regional Breakdown:
  • North America: $7.7B in funding across 378 deals.
  • Europe: $1.5B in funding across 125 deals.
  • Asia: $4.5B in funding across 130 deals.

Corporate Involvement

• Corporates participated in 25% or more of all fintech deals for three consecutive quarters.
• Asia had the highest corporate involvement at 40%, while Europe saw only 10%.
• Corporates are increasingly seen as enablers rather than competitors, helping banks innovate and improve customer experience.

Sub-sector Highlights

Payments & Lending Tech

• Payments and lending were the top sub-sectors, with Series E and Series D+ deals driving value.
• SoFi ($1.35B) and Avant ($325M) were among the largest lenders in the space.
• Stripe and Kabbage were key players in payments and lending respectively.

Blockchain & Bitcoin

• Blockchain investment grew from $298 million in 2014 to nearly $460 million in 2015.
• Series C deals marked the first maturity stage for blockchain projects.
• Major banks like Citibank, Santander, and HSBC began exploring blockchain for efficiency and security improvements.

Insurance Tech

• Insurance tech showed growing interest, with companies like Zenefits, Oscar, and Gusto leading the charge.
• These companies are redefining insurance, payroll, and benefits models.

Regional Analysis

United States

• Fintech funding reached $7.39B across 351 deals, a 72% increase from 2014.
• Series B deals increased to a 5-quarter high, while seed deals dropped to a 5-quarter low.
• Late-stage deal sizes peaked at $75M in Q3'15 but fell to $38M in Q4'15.

India

• India emerged as a top fintech market, with 21 deals totaling $1.39B.

United Kingdom

• The UK was a key player in Europe, with 20 deals totaling $291.3M.
• UK fintech funding outpaced Germany by 398%.

Asia

• Asian fintech funding reached $4.52B, driven by 17 $50M+ deals.
• One97 Communications and DianRong were among the largest deals in the region.
• Corporate participation was high, especially in Q4'15, with 40% of deals involving corporates.

Key Challenges & Outlook

• Regulatory and market barriers pose significant challenges for blockchain adoption.
• While interest in blockchain is growing, realistic expectations are needed due to the technology's complexity and current limitations.
• VC investors are increasingly optimistic about fintech's potential to disrupt and transform banking and insurance.
• Corporate investment is expected to continue playing a central role in fintech development, especially in Asia.

Conclusion

2015 was a pivotal year for fintech, with record funding and growing corporate involvement. The sector's evolution was driven by innovation in payments, lending, and blockchain, with a shift from disruption to co-creation. While deal activity slowed in Q4, the overall momentum and interest in fintech remained strong, setting the stage for continued growth in 2016.