The Pulse of Fintech Report, Q2 2016

KPMG and CB Insights' Q2 2016 fintech report highlights the latest trends in venture-backed fintech companies globally.

In this quarter’s The Pulse of Fintech Report — a collaboration between KPMG International and CB Insights — we examine the key trends, diverse opportunities and challenges related to fintech in Asia, North America and Europe. As a part of our analysis, we explore answers to a number of questions, including:  

  • What areas of fintech are gaining momentum around the world?
  • How is the definition of fintech continuing to evolve?
  • What are the recent developments around regulatory frameworks?
  • What is driving VC investment in InsurTech?

Get the free 92-page report for all the latest fintech financing trends globally. 

Report Highlights:

Funding to VC-backed fintech companies dropped 49% on a quarterly basis in Q2’16, while deal activity fell 12% from Q1’16’s total.

Fintech seed deal share fell to a 5-quarter low in Q2’16 at 29% from 34% in Q1’16. Series C deal share rose to a 5-quarter high in Q2’16 at 12%.

Corporate participation in VC-backed fintech deals rose to the 5-quarter high and surpassed the 30% mark in Q2’16 to hit 32% compared to 23% in Q2’15.

Q2'16 sees VC-backed fintech funding, deals drop

Seed-stage activity falls to a 5-quarter low

Corporates participate in nearly one-third of fintech deals

Fintech mega-rounds in North America fall; Asia stays level; Europe draws a blank

$50M+ rounds to VC-backed fintech companies in North America fell from nine in Q1’16 to five in Q2’16. Asia saw $50M+ fintech rounds stay level for the third straight quarter while Europe has not registered a $50M+ round to a VC-backed fintech company in 2016 to date. 

Goldman sachs, Citigroup, Banco Santander lead biggest banks by fintech investments

Over the past 5 quarters, Goldman Sachs, Citigroup and Banco Santander or their corporate venture units have each completed seven or more deals to VC-backed fintech companies.