Professional Documents
Culture Documents
in Fintech
January 2015
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Contents
Global Fintech Investment Trends
05
06
07
08
Fintech Exits
09
12
UK Fintech Revenues
14
15
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Lending
Personal Finance
Retail Investments
Institutional Investments
Remittances
Consumer
Banking
Finincial
Research
Payments
Equity Financing
Banking
Infrastructure
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Global Fintech
Investment
Trends
237
212
71
22
Deal size range $0-1
in millions:
Total value:
$212m
$1-5
$5-10
$10-25
$25-50
Series A
Series C
Series D
Series E+
Percentage of deals
41.4%
26.7%
15.9%
8.3%
4.1%
3.7%
$1.18m
$6.17m
$12.78m
$19.91m
$25.12m
$24.54m
$0.66m
$4.00m
$8.00m
15.00m
$15.02m
$20.00m
Deal Growth
(year-over-year)
22.3%
12.9%
22.4%
16.5%
2.7%
19.4%
Source: CB Insights
Global fintech investments are averaging $50 million and over 68% of deal activity
is at Seed or Series A.
The average deal size at the Angel / Seed stage is $1.18 million and $6.17 million at
Series A.
However, we are witnessing an increase in larger, later stage rounds for growth-stage
fintech businesses, with an average of $25 million raised at Series D.
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Global Fintech
Investment Trends
$8.5
$6.5
$6.3
$6.4
$5.5
$7.2
$6.1
$4.8
$7.9
$5.1
$4.9
$5.9
$7.5
$7.9
$12.6
$16.9
$4.5
$2.4
$3.2
$2.8
$1.4
$1.7
$2.0
$1.5
$1.5
$1.5
$1.5
$1.6
$1.1
$1.6
$1.8
$2.3
$2.5
$4.0
$3.5
$2.8
Q1
Q2 Q3
2010
Q4
Q1
Q2 Q3
2011
Q4
Q1
Q2 Q3
2012
Q4
Q1
Q2 Q3
2013
Q4
Q1
Q2 Q3
2014
Q4
$0.0
$1,678
$1,687
$1,306
$737
$677
$597
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010
2011
2012
2013
2014
Source: CB Insights
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250
200
$3,090
161
214
$5,589
173
180
142
159
151
141
$923
$625
117
87
$538
$597
92
$434
$722
$676
$481
82
$612
79
$284
$1,000.0
$447
$2,000.0
65
$3,000.0
90
128
$4,000.0
127
154
$5,000.0
190
# of Deals RHS
194
$1,300
$6,000.0
$11.0
$8.3
$2.9
150
100
50
0
$2,500.0
# of Deals
90
82
$2,000.0
$2,167.6
80
65
70
60
$1,500.0
50
$1,277.9
35
$1,000.0
37
40
$810.5
$494.8
$500.0
30
$635.1
20
23
10
$0.0
VC
Corporate /
Corporate VC
Private Equity
Angel
Others
Source: CB Insights
Corporate and angel investors also featured prominently, with 35 and 37 deals
respectively and a combined $1.13 billion invested.
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Global Fintech
Investment Trends
Fintech Exits
51
52
50
49
Q1
Q2 Q3
2014
Q4
IPO
Q4
Q1
Q1
Q2 Q3
2013
36
41
Q4
27
Q2 Q3
2012
40
39
Q2 Q3
2011
30
Q1
46
Q4
49
18
Q2 Q3
2010
27
20
Q1
24
18
30
33
50
M&A
Q4
Source: CB Insights
The fintech market saw 211 exits in 2014, making it the most prolific period of the last 5
years for exits.
Mergers and Acquisitions are the primary mode of exit, rather than IPOs, although we
have started to see some IPO activity with Borderfree, Coupons.com, Lending Club,
OnDeck Capital, Q2 Software, and Yodlee coming to market in 2014.
Over the last 5 years, exits have averaged 37 per quarter with 23% year-on-year growth.
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Fintech Exits
There is increasing acquisition activity, mostly by established
fintech businesses rather than non-traditional players.
Recent activity (last three years)
Source: CB Insights
10
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Global Fintech
Investment Trends
Fintech Exits
Examples of M&A and IPOs (2013 2014, $MMs)
Date
Dec-14
Dec-14
Nov-14
Nov-14
Nov-14
Nov-14
Nov-14
Oct-14
Oct-14
Sep-14
Sep-14
Aug-14
Aug-14
Jul-14
Jul-14
Jun-14
May-14
Mar-14
Mar-14
Feb-14
Dec-13
Oct-13
Oct-13
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
Feb-13
Feb-13
Target
Wallaby Financial
OnDeck
Hopster
Ukash
Swarm
Fuze Network
L2C
Yodlee
mopay
Parago
Ebates
Leaf
Caviar
CardSpring
Gyft
Mercury Payments
Check
Borderfree
Coupons.com
Simple
Lemon
41st Parameter
Perka
OzForex
Braintree
Locu
RetailMeNot
Chalo
Xoom
mFoundry
Buyer
Bankrate
IPO
Inmar
Skrill
Groupon
Ingo Money
TransUnion
IPO
BOKU
Blackhawk Network
Rakuten
Heartland Payments
Square
Twitter
First Data
Vantiv
Intuit
IPO
IPO
BBVA
LifeLock
Experian
First Data
IPO
PayPal
GoDaddy
IPO
OpenTable
IPO
FIS
11
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Valuation
NA
$1,000
NA
NA
NA
NA
NA
$340
NA
$290
$1,000
$50*
$90
NA
$50-$100*
$1,650
$360
$488
$1,200
$117
$43
$324
$34
$490
$800
$70
$1,000
$11
$500
$165
UK Fintech
Investment
Trends
UK Fintech
Investment Trends
13
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UK Fintech Revenues
UK fintech sector generates more than 20 billion
revenues per year.
10.0
1.9
Online
8.1
Infrastructure
4.2
3.8
0.2
Accounting
1.0
Credit
Reference
4.0
Software
to financial
services
2.2
Capital
Markets
2.1
0.1 P2P Platforms
0.8 Trading
0.7 Personal Wealth
0.6
Insurance
Payments
0.5 Aggregators
Financial Software
14
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Platforms
UK Fintech
Investment Trends
Largest UK Fintech
Investments
Top Deals 2013-2014
Investors
Key
Sector
Sub-sector
Last
Series
Total
Last
Funding Funding
(US$m) (US$m)
Sep 2013
Processing
Fund network
Growth
Equity
18.0m
18.0m
Accel, Octopus
Investments
Jan 2014
Lending
Consumer
Lending
Series E
25.0m
42.9m
Arrowgrass
Capital
Jan 2014
Lending
SME Lending
Series B
8.2m
11.5m
Beyond Digital
Mar 2014
Payments
Money
Transfer
Series A
40.0m
40.0m
Accel
Apr 2014
Personal
finance
Investment
management
Series B
32m
37.3m
Balderton
Capital,
Tim Draper,
Schoeders
Jun 2014
B2B
platforms
Cross-border
payments as
a service
Series B
10m
17m
Notion Capital,
Xange Private
Equity, Atlas
Ventures
Jun 2014
Payments
Money
Transfer
Series B
25.0m
32.3m
Index, IA
Ventures,
Kima Ventures,
Richard Branson,
The Accelerator
Group, Valar
Ventures
Jul 2014
Lending
SME Lending
Series D
65.0m
123.2m
32m
37.3m
Union Square
Ventures, Accel
Partners, Index
Ventures, Ribbit
Capital
80.0m
176.7m
Company
Date
Nov 2014
Mobile
eCommerce
Series B
Source: CB Insights
15
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Wellington
Management
UK Branch
41 Lothbury,
London, EC2R 7HF
United Kingdom
T +44 (0)20 7367 7800
F +44 (0)20 7600 9556
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Jon Barrett
jbarrett@svb.com
@jonbarrettUK
@svb_uk
Alex McCracken
amccracken@svb.com
@alexmccra
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