Investment dollars into Financial Technology (“Fin Tech”) tripled in 2014. Strategic or corporate investors are one of the key drivers of the increase as the emergence of Fin Tech has corporates ranging from Google to MasterCard to Citigroup actively investing in the space. This research brief highlights investing trends by corporates in the Fin Tech space, including the rising number of corporate investors, the most active corporates and where the top non-financial services corporations are looking in Fin Tech. One of the most interesting facets of the recent fin tech boom is the emergence of these “unusual suspect” investors who see massive opportunity in disrupting traditional financial services.
All the data below.
Corporate investors in Fin Tech rise 176%
Fin Tech is top of mind for many of the largest corporations in the world. In 2014, more than 90 unique corporations invested in Fin Tech startups, a 176% increase from 2010.
Fin Tech funding with corporate participation set to double
Deals and investment dollars involving corporates are also on the rise, with 2015 set to double 2014’s funding levels. $1.4B was invested across more than 110 deals last year, which included twelve $50M deals including Mozido, Credit Karma, and OnDeck Capital. 2015 has already seen more than $700M invested, including large deals in Coinbase and LendingHome.
The most active corporates in Fin Tech
While large financial players like banks and insurance providers are investing at a higher rate, the chart of most active corporate investors in Fin Tech is topped by tech companies. The top investor is Google Ventures, who has made 25 unique company investments into Fin Tech since 2010, followed by Intel Capital who was the only other investor with more than 10 investments into the space.
|6||American Express Ventures|
|10||SK Telecom Ventures|
Where the ‘unusual suspects’ are investing
Of the top 3 non-financial players (Google, Intel, and eBay), Intel and Ebay have more specific investment focuses. While Intel is very focused on payments tech/mobile payments, Ebay is more focused on mobile commerce and ecommerce enablement.
Intel has notably made a large number of investments outside of the US, including companies like iZettle (Sweden), Elike (Brazil), and UUCun (China). While Ebay has not made as many investments as the other tech giants, it has acquired two of its investments (Magento and BillSafe).
Google on the other hand has made investments across a wider spectrum of fin tech spaces ranging from small business loans (OnDeck Capital) to personal savings (Hello Digit). Four of the spaces Google seems particularly interested in are crowdfunding, digital currency, trading tools, and back office software with at least three investments in each. Below are some of the select areas these non-financial investors are focusing on.
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