So, it seems the $$$$ haven’t dried up for startups in the fintech sector. BUT, it has been “re-deployed” into the wealth management, insurance space and slightly less into lending. How much is flowing? Well $8 Billion so far this year which makes it on target to be a record for the year. The very BIGGEST funding winners? Blockchain and bitcoin startups. That’s why we write so much about those sectors. They are HOT.
- “More than $8 billion raised in fintech so far in 2017
- Five companies join unicorn status with values over $1 billion
Financial technology startups are on pace to see funding reach a record as insurance, wealth management, lending and blockchain-related companies attract new dollars.
So far this year there have been 496 deals globally, raising a total of $8 billion, according to a new report from CB Insights, a technology industry research firm. That’s just $6.1 billion shy of the annual record set in 2015, shortly after companies like LendingClub Corp. and On Deck Capital Inc. went public. In the second quarter of this year alone, more than $5 billion was raised, the report showed.
Even as some startups in other sectors of the private market have faced scandals (Uber Technologies Inc.) or had initial public offerings that flopped (Blue Apron Holdings Inc, Snap Inc. ), some recent financing rounds in fintech were large enough to mint new unicorns. In the past three months, five new startups with valuations over $1 billion were born: Clover Health, Robinhood Financial LLC, Avidxchange Inc., Symphony and Tuandaiwang, according to CB Insights.
Venture Capital firms including 500 Startups and New Enterprise Associates have been the most active in the past five quarters, but funding wouldn’t be hitting records without the help of corporate investors. In fact, corporate participation hit a five-quarter high for fintech in the second quarter, with these firms participating in more than 30 percent of deals globally…”