Deals and funding to VC-backed fintech companies in North America dropped to a 5-quarter low in Q3’16 with $900M raised across 96 deals, according to The Pulse of Fintech – Q3’16 published by KPMG and CB Insights.
In contrast to the same quarter last year, which saw mega-rounds to the likes of SoFi, Kabbage and Avant, Q3’16 saw fintech investment to VC-backed companies dip below $1B. On a quarter-over-quarter basis, fintech investment fell 47% in Q3’16.
Deal activity to VC-backed North American fintech companies in Q3’16 dropped 5% on a quarterly basis. Overall fintech deal activity in North America fell below 100 in Q3’16, with just 96 fintech deals recorded over the three-month period.
North America fintech trends by stage
Despite a drop in overall deal activity, North America saw seed deal share rebound in Q3’16. In Q3’16, seed activity took 32% of all fintech deals in North America, up from 23% in Q2’16. Conversely, VC-backed Series A fintech deal share fell to 20% in Q3’16, a 5-quarter low.
Mid-stage (Series B and Series C) deal activity reached 19% in Q3’16, dropping to a 4-quarter low.
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