NEW YORK,
Feb. 13, 2019 /PRNewswire/ -- Fintech investment in the U.S. hit a record
$52.5 billion
during 2018, driven by a strong M&A (mergers & acquisitions) market, and VC (venture capital) accounting for more than half of the 1061 fintech deals, according to KPMG's report.
Follow the conversation on @KPMGUS_News using the hashtag: #fintech
The full report can be found here: https://home.kpmg/xx/en/home/insights/2019/01/pulse-of-fintech-h2-2018.html M&A drove total fintech investment, highlighted by the year's top M&A deal: a$17 billion
investment in October by Blackstone Group into Refinitiv, the former financial and risk group of Thomson Reuters. That brought the total invested in Q4' 2018 to$25.4 billion
, up from$11.1 billion
in Q3. M&A deals skewed toward smaller enterprises in 2018, while late-stage valuations nearly doubled. A significant number of$100 million
plus megadeals helping propel fintech-based VC investment to$11.4 billion
, up from$7 billion
in 2017. The number of fintech VC deals also reached a new high of 773 in 2018, up from 661 in 2017.The report found that over the past year, there was a growing trend toward partnering between fintechs and big tech companies. While some of the large companies have introduced their own fintech offerings, others are considering partnering with fintechs in order to gain the collective benefits.
During 2018, mid-sized banks and financial institutions also got involved in fintech, as they focused on innovation to create sustainable growth.
"Banks of all sizes are increasing their investments across categories that make sense to them –insurance, payments, lending," saidRobert Ruark
, Head of KPMG's Fintech practice in the U.S."They are seeking ways to accelerate their growth and we will continue to see this kind of activity in 2019 and beyond."
Insurtech investment booming
$540 million
, and a$300 million
financing by Devoted Health.Platform business leads fintech investment
Trends to watch in 2019