One-third of all fin tech deals since 2009 by Wells Fargo, JPMorgan, Citi, Morgan Stanley, Goldman, and BofA have come in 2015 YTD.
Major banks stepped up their fin tech investments in 2015, betting on startups ranging from bitcoin payments apps and enterprise blockchain platforms to peer-to-peer lenders. According to CB Insights data, 34% of all fin tech deals since 2009 by Wells Fargo, JPMorgan, Citi, Morgan Stanley, Goldman Sachs, and Bank of America have come in 2015 year-to-date through 11/17/15.
There have already been 15 fin tech deals by these six banks YTD, compared to just 9 in full-year 2014, and 4 in 2009.
Goldman Sachs most active
Of the six banks, Goldman Sachs has been most active in fin tech investing in 2015 YTD, with notable investments including Circle Internet Financial, Financeit, and CompareAsia. Citibank, whose fin tech investments include those of corporate venture arm Citi Ventures, leads the pack since 2009. The chart below shows fin tech deal activity (new and follow-on) by the six banks since 2009 through Nov. 17, 2015. Note: Debt and lines of credit were not included.
Interestingly, big banks are also collaborating on more fin tech deals together. For example, Bank of America, Citi, and Morgan Stanley all invested in financial research data analytics platform Visible Alpha (along with fellow bulge bracket bank UBS and investment bank Jefferies) in May 2015. In September 2015, Context Relevant, a Seatlle, Washington-based data analytics startup, took investment from Bank of America and Goldman Sachs.
The table below highlights some of the recent fin tech deals that counted multiple banks as co-investors, ordered by date starting with most recent deals.
|Company||Description||Select Bank Investors||Date||Round Amount|
|(AcadiaSoft)||Deritivates and collateral management solutions||Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley||Jul-15||Venture // $30M|
|(Visible Alpha)||Institutional investing data and analytics platform||Bank of America, Citigroup, Jefferies, Morgan Stanley, UBS||May-15||Venture // $30M|
|(Symphony Communication)||Open-source, secure communication, and workflow platform for financial institutions||Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley||Oct-15||Venture // $66M|
|(Context Relevant)||Predictive data analytics software for the financial sector||Bank of America, Goldman Sachs||Sep-14||Series B-II // $13.5M|
|(Motif Investing)||Online broker allowing investors to trade baskets of stocks||Goldman Sachs, JPMorgan||May-14||Series D // $35M|
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