Professional Documents
Culture Documents
of Fintech,
Q2 2016
Global Analysis of
Fintech Venture Funding
#FINTECH
Welcome message
In Q216, global funding to VC-backed fintech companies dropped substantially. Despite this quarters
decline, funding is on pace to exceed 2015 investment levels.
Given global market uncertainties associated with the UK Brexit vote and its initial impact, the
approaching US presidential election, ongoing concerns about valuations and significant headwinds in
the marketplace lending space, it was not surprising to see VC investors taking a pause, particularly
from making significant fintech mega-deals. It is expected that this cooling-off period may last through
the remainder of the year as investors take a wait and see approach expecting market conditions to
stabilize over the next few months.
While some VC investors are being cautious, many corporates are forging ahead with fintech-related
activities. Banks, financial institutions and insurance companies seem to be continuing to shift their
view of fintech companies as disruptors and competitors to one where they are viewed as partners
and enablers. Over the quarter, many traditional companies, globally, focused on creating
opportunities to leverage fintech, whether through direct investment, acquisition or the creation of
innovation labs.
While confidence in marketplace lending took a hit following revelations about wrongful activities with
one of the market leaders* in addition to news about shutdowns, layoffs and weaker than expected
volumes and margins, other areas of fintech continued to see substantial interest. InsurTech and
blockchain distributed ledger technologies in particular accounted for a number of the large funding
rounds during Q216.
Regionally, the US continued to dominate VC deals in the fintech market accounting for $1.3 billion
of the total $2.5 billion raised during the quarter. In Europe, deals funding rose slightly overall, from
$300 million in Q1 to $400 million in Q2, despite a slight drop in UK-based fintech funding.
Asia experienced the most dramatic quarter-over-quarter decrease in funding to VC-backed
companies from $2.6 billion in Q1 down to just $800 million in Q2, despite a rise in the total number
of fintech deals. This decline can be attributed to the lack of significant mega-rounds within the
quarter. While VC-specific funding to fintech companies may be down in Asia, fintechs popularity in
the region should not be discounted. The worlds largest private technology funding round occurred
during this quarter when Ant Financial raised $4.5 billion in China.
* Reference: LendingClub Is Ruining It for the Rest of Fintech, Bloomberg, May 20, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
We hope you find this edition of The Pulse of Fintech Report informative. If you would like to discuss
any of the results in more detail, contact a KPMG adviser in your area.
Warren Mead
Global Co-Leader of
Fintech, KPMG
International and Partner,
KPMG in the UK
Ian Pollari
Global Co-Leader of
Fintech, KPMG International
and Partner,
KPMG in Australia
Dennis Fortnum
Global Chairman,
KPMG Enterprise,
KPMG International
Brian Hughes
Co-Leader,
KPMG Enterprise
Innovative Startups
Network, Partner,
KPMG in the US
Arik Speier
Co-Leader,
KPMG Enterprise
Innovative Startups
Network, Partner,
KPMG in Israel
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
Institutional/capital markets tech: Companies either providing tools to financial institutions such as banks, hedge funds, mutual funds or
other institutional investors. These range from alternative trading systems to financial modeling and analysis software.
Equity crowdfunding: Platforms that allow a collection of individuals to provide monetary contributions for projects or companies
provisioned in the form of equity.
InsurTech: Companies creating new underwriting, claims, distribution and brokerage platforms, enhanced customer experience offerings
and software as a service to help insurers deal with legacy IT issues.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
TABLE OF CONTENTS
#
SECTION
Summary
Global data
37
North America
56
Europe
72
Asia
#FINTECH
SUMMARY OF FINDINGS
FINTECH FUNDING DROPS 49% IN
Q216; CORPORATES GET BUSY IN
FINTECH
#FINTECH
SUMMARY OF FINDINGS
EUROPE FINTECH: $369M ACROSS 43 DEALS
TO VC-BACKED COMPANIES IN Q216
Asian fintech funding drops from Q116 spike: Funding to VCbacked fintech companies in Asia fell from over $2.6B in Q116 to
$772M in Q216. Despite funding slowing down in Q216, Asia
fintech deal and funding activity is on pace to surpass 2015s high
at the current run rate.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Asian fintech early-stage deal share remains dominant: Earlystage VC-backed fintech companies in Asia accounted for 61% of
deal share in Q216. Mid-stage deal share at the Series B and
Series C stage took 30% of Q216 fintech deal share in Asia.
Asian corporate activity rebounds in Q216: Corporate
participation in Asian VC-backed fintech deals rebounded to 39%
in Q216 from 31% in Q116. Corporates saw slightly less deal
share in Q216 than the same quarter last year when corporates
participated in 41% of Asian fintech deals.
#FINTECH
$2.5B
across
195 deals
Overall fintech investment
reached $9.4B
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
Q216 also saw countries in different regions working together to enhance fintech opportunities. The UK and Singapore announced a fintech
bridge aimed specifically at assisting fintechs expand more readily between the two countries. This bridge, in addition to other similar
activities, reflects growing recognition that fintech is a global industry and that more regulatory cooperation between countries is required in
order to help it flourish.
Definition of fintech continues to evolve
While payments and lending platforms continue to gain attention, particularly in Asia where there are many challenges and opportunities
associated with providing services to the underbanked, other areas of fintech are moving into the spotlight. Over the last quarter, a number of
fintech subsectors gained traction, including blockchain, InsurTech and robo advisory.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
Interest in InsurTech is also growing as the industry finally begins to play catch-up with its banking and financial services counterparts. While
the industry has been slow to change, companies like AIA are helping propel the industry into the future. AIA is utilizing wearables to help
people become healthier and rewarding people based on analytics of corresponding data.
Other companies, like Trov Insurance, are providing options to help attract business from a high number of uninsured millennials. As
InsurTech opportunities become more visible, many established insurers are also beginning to make their own investments looking for
ways to leverage InsurTech to improve their own organizations and customer service.
A shift to co-creation in fintech
One noticeable trend seen in Q216 involves traditional corporates shifting their attention to co-creation opportunities. A number of larger
corporates have invested in internal innovation labs or innovation garages in order to bring together fintech companies to help them respond
to challenges and test technologies even while providing participating fintechs with the support they need to grow. There has also been an
increase in traditional financial institutions working with fintech companies on all manner of proof-of-concept initiatives. Over the next several
quarters, it is likely that a number of these collaborative activities will bear fruit.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
10
500
458
361
374
363
400
350
$7.0
$6.0
350
$7.2
$5.0
$4.0
$3.0
218
$-
300
$6.8
208
$5.7
186
195
221
$3.1
$2.0
$1.0
450
$9.4
250
200
150
100
$5.2
$4.9
$1.9
$4.9
$2.5
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
50
0
*Overall investment includes fintech funding by angel investors, angel groups, private equity firms, mutual funds, hedge funds, VC, corporate and corporate VC investors.
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
11
900
807
800
710
$12.0
700
$10.0
560
451
$8.0
$6.0
600
416
400
$14.5
311
300
$4.0
$7.4
$7.3
$2.0
$-
500
100
$2.1
$0.6
$2.5
$0.6
$3.1
$0.6
$1.8
$5.2
$2.5
2011
2012
2013
2014
2015
2016 YTD
Q2 Investment ($B)
200
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
12
Asia ($2,933M)
Europe ($86M)
15
12
23 25 19
10
26 27 22 17
30
16
18
13 29
24 28
20
4
11
Lu.com
$1216M
Series B
16
Nubank
$52M
Series C
JD Finance
$1010M
Unattributed VC
17
Aria Systems
$50M
Series E
$400M
Series C
18
Cadre
$50M
Series B
Fenqile
$235M
Series C
19
LendUp
$50M
Series B
Clover Health
$160M
Series C
20
MobiKwik
$50M
Series C
Welab Holdings
$160M
Series B
21
Paymax
$50M
Series C
Weidai
$153M
Series C
22
Personal Capital
$50M
Series E
Affirm
$100M
Series C
23
Payoff
$46.76M
Series D
Betterment
$100M
Series E
24
Finanzcheck
$46M
Series C
10
Bright Health
$80M
Series A
25
Plaid Technologies
$44M
Series B
11
StoneEagle
$76M
Growth Equity
26
Blend Labs
$40M
Series C
12
$60M
Series D
27
BlueVine
$40M
Series C
13
$60M
Series A
28
N26
$40M
Series B
14
Duanrong
$59M
Series B
29
OLO
$40M
Series D
15
Blockstream
$55M
Series A
30
Open Lending
$40M
Private Equity
Lending
Insurance
Wealth management
Payments
Blockchain
Mobile banking
Real estate
14
21
Financial data
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
13
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Ian Pollari
Global Co-Leader of Fintech,
KPMG International and Partner,
KPMG Australia
#FINTECH
14
158
132
106
88
110
103
116
158
159
172
183
196
195
221
208
186
195
128
88
64
71
$0.6 $0.6 $0.4 $0.5 $0.7 $0.6 $0.7 $0.6 $0.6 $0.6 $0.9 $1.0 $1.6 $1.8 $1.3 $2.6 $2.6 $5.2 $4.9 $1.9 $4.9 $2.5
Investments ($B)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
15
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Brian Hughes
Co-Leader,
KPMG Enterprise Innovative
Startups Network,
and National Co-Lead Partner,
KPMG Venture Capital Practice,
KPMG in the US
#FINTECH
16
12%
2%
4%
7%
17%
17%
16%
23%
26%
25%
24%
35%
32%
34%
34%
29%
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
13%
3%
3%
11%
13%
2%
3%
7%
11%
Seed / Angel
Series A
Series B
Series C
Series D
Series E+
15%
2%
4%
12%
13%
26%
Other
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
17
$3.0
$2.5
$2.0
Q2'15
$2.1
$2.1
Q3'15
Q4'15
Q1'16
Q2'16
#FINTECH
18
$38.0
$30.0
$19.5
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
#FINTECH
19
Q215 Q216
Q215 Q216
131
130
$2.8
118
$2.6
$2.5
104
97
$2.2
$1.8
$1.6
$1.3
42
42
41
33
Q2'15
Q3'15
North America
44
40
$1.0
46
$0.8
43
40
36
Q4'15
Q1'16
Asia
Q2'16
Europe
$0.5
Q2'15
$0.5
$0.4
Q3'15
North America
$0.3
Q4'15
Asia
$0.3
$0.4
Q1'16
Q2'16
Europe
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
20
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Jan Reinmueller
Head,
Digital Village,
KPMG in Singapore
#FINTECH
21
Investor
Rank
Investor
500 Startups
10
Blumberg Capital
QED Investors
10
Nyca Partners
10
Accel Partners
Route 66 Ventures
14
Index Ventures
14
Spark Capital
14
Slow Ventures
14
Khosla Ventures
14
Blockchain Capital
10
RRE Ventures
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
22
23%
23%
23%
24%
77%
77%
77%
76%
Q2'15
Q3'15
Q4'15
Q1'16
Other Investors
32%
68%
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
23
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Arik Speier
Co-Leader, KPMG Enterprise
Innovative Startups Network and
Head of Technology,
KPMG in Israel
#FINTECH
24
Affirm
$100M // Series C
$1.4
$1.2
$1.0
70
64
54
60
54
46
50
$50M // Series C
Remitly
$38.5M // Series C
38
$0.8
Mobikwik
40
$0.6
30
Top Countries
$0.4
20
United States
$0.2
10
26 Deals // $251M
Germany
$-
$0.9
$1.3
$0.5
$0.4
$0.5
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
5 Deals // $64.9M
Deals
United Kingdom
3 Deals // $42.4M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
25
Fenqile
$235M // Series C
$2.5
30
27
25
$2.0
22
23
25
Weidai
$153M // Series C
Affirm
20
$1.5
14
$100M // Series C
15
Top Countries
$1.0
10
United States
$0.5
$-
$1.1
$2.0
$0.4
$1.8
$0.7
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
9 Deals // $180.3M
China
4 Deals // $422M
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
26
9
7
1
0
Q2'15
Q3'15
Q4'15
North America
Q1'16
Asia
0
Q2'16
Europe
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
27
Oscar Health
$400M // Series C
$3.0
74
71
$2.5
55
$2.0
47
42
$1.5
$1.0
21
80
Clover Health
70
$160M // Series C
60
Bright Health
50
$80M // Series A
40
Justworks
30
$33M // Series C
20
$0.5
$-
Top Cities
10
$0.1
2011
$0.3
$0.2
$0.7
2012
2013
2014
Investment ($B)
$2.5
$1.0
0
2015
2016 YTD
Deals
San Francisco
8 Deals // $213M
New York
5 Deals // $467M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
28
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
29
In the near term, investments will likely focus on finding ways to engage customers in more meaningful ways across online and mobile
platforms from improving policy handling to improving claims payment processes. There is also expected to be an increase in the use of
blockchain and smart contracts, data analytics to provide more customer insights and the use of the Internet of Things and wearables to
enable more effective insurance operations.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
30
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Martin Blake
Subject Matter Expert
InsurTech,
KPMG Australia
#FINTECH
31
~$1B
VC funding
7
19 17
18
Europe ($25M)
16
10 12
14
13
82
VC Deals
47%
Deals at seed-stage
63%
Deals to US-based
startups
Asia ($66M)
15
11
20
Oscar Health
$400M
Series C
11
Series B
Clover Health
$160M
Series C
12
Goji
$19M
Series D
Bright Health
$80M
Series A
13
Insurance Zebra
$17M
Series A
Justworks
$33M
Series C
14
Friendsurance
$15M
Series B
Huize Insurance
$31M
Series B
15
PolicyGenius
$15M
Series B
Namely
$30M
Series C
16
Joyowo.com
$15M
Series B
Trov
$26M
Series C
17
Zendrive
$14M
Series A
Gusto
$25M
Series B
18
Next Insurance
$13M
Seed VC
LEAGUE
$25M
Series A
19
Embroker
$12M
Series A
10
Maxwell Health
$22M
Series C
20
Shift Technology
$10M
Series A
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
32
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Murray Raisbeck
Subject Matter Expert
InsurTech,
KPMG in the UK
#FINTECH
33
5%
5%
5%
10%
2%
13%
2%
4%
3% 4%
1%
6%
8%
1% 4%
8%
17%
22%
24%
24%
22%
23%
31%
43%
50%
44%
38%
32%
23%
2011
2012
Seed / Angel
2013
Series A
Series B
2014
Series C
2015
Series D
Series E+
17%
15%
25%
19%
11%
2%
2016 YTD
Other
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
34
7
4
*Chart includes largest banks in US, Europe and Asia by AUM with disclosed fintech investments. Does not include data from independent venture firms associated with the above banks.
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
35
Round
Country
Nubank
$52M
(Series C // Q116)
Brazil
MoneyMe
$30M
(Venture // Q116)
Australia
Undisclosed Investors
SocietyOne
$19M
(Series C // Q216)
Australia
GuiaBolso
$17.3M
(Series C // Q216)
Brazil
PromisePay
$10M
(Series A // Q216)
Australia
BankFacil
$4.4M
(SeriesA // Q216)
Brazil
ContaBilizei
$2.1M
(Series A // Q216)
Brazil
$1.2M
(Seed // Q116)
South Africa
FinanZero
$1.2M
(Minority // Q116)
Brazil
HashChing
$780K
(Seed // Q216)
Australia
Hepstar
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Select investors
Founders Fund, Kaszek Ventures, Sequoia
Capital, Tiger Global
#FINTECH
36
In Q2 2016
NORTH
AMERICAN
VC-backed fintech companies raised
$1.3 billion
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
37
The online lending space was one of the first subsectors of fintech to see significant VC investment with the market quick to reward some
significantly high premiums in terms of valuations. That first out of the gate investment mentality seems to have shifted over the past couple
of quarters. Now, with allegations regarding the activities of one of the market leaders revealed during Q216, the space has lost even more
luster. A number of marketplace lenders have undertaken layoffs while others have decreased volumes or shut down all together.
As a result, it is expected that there will be a shakeout among market participants in the lending space. While some companies will continue
to introduce new lending models including strong corporates like American Express the more unstable online lenders will likely
disappear.
Lack of unicorn growth continues
2016 continues to be characterized by a smaller number of unicorn births compared to last year a trend affecting many areas of VC
investment including fintech. This decline may be attributed to a number of unicorns getting ahead of themselves in terms of valuations as a
result of alternative lending companies primarily mutual funds jumping into late-stage investing and driving up private company
valuations during 2014 and 2015.
Newer fintech areas gaining investment momentum
During the first 2 quarters of 2016, it became apparent that investors are focusing more attention on newer areas of fintech when it comes to
their investments. InsurTech and blockchain were among the big winners during the quarter, with a number of significant funding rounds
coming in these two sub-sectors, including rounds by Clover Health Insurance, a company focused on offering data-driven health insurance
options ($350 million) and Circle Internet, a company that allows users to send payments for free ($60 million). It is expected that these areas
will continue to gain momentum as investors grow more cautious regarding payments and lending opportunities.
Other areas of fintech expected to see increased investment interest over the next few quarters include robo advisory and artificial
intelligence.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
38
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
39
252
227
$3.6
$1.8
$1.9
$1.1
$0.6
$1.4
$0.5
$0.5
2011
2012
2013
Q2 Investments ($B)
$2.5
$1.3
2014
2015
Deals
$1.3
2016 YTD
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
40
130
118
104
97
$2.5
$2.8
$1.0
$1.8
$1.3
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
41
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Conor Moore
National Co-Lead Partner,
KPMG Venture Capital Practice
KPMG in the US
#FINTECH
42
14%
3%
3%
5%
13%
13%
2%
4%
14%
21%
28%
21%
3%
5%
7%
3%
6%
14%
24%
13%
11%
25%
24%
34%
34%
36%
32%
Q2'15
Q3'15
Q4'15
Q1'16
Seed / Angel
Series A
Series B
Series C
Series D
Series E+
22%
Q2'16
Other
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
43
$3.0
$2.6
$2.2
$1.7
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
44
$60.0
$40.0
$38.0
$30.0
$19.5
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
45
Remitly
Digital remittance company
Series C
$39M
$160M
$100M
$50M
Clover Health
Tech-enabled health insurer
Series C
Affirm
Alternative lending Startup
Series C
$44M
$33M
$47M
Plaid Technologies
Financial services API
Series B
$80M
$60M
Bright Health
Tech-enabled health insurer
Series A
$36M
TruMid Financial
Bond-trading startup
Series C
SigFig
Automated investment firm
Series C
Personal
Payoff
Capital
Online lending
Automated
marketplace
investment firm
Series D
Series E
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
46
24%
76%
Q2'15
18%
82%
Q3'15
Other Investors
24%
23%
76%
77%
Q4'15
Q1'16
30%
70%
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
47
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Anthony Rjeily
Principal,
Financial Services Digital and
Fintech Practice Lead,
KPMG in the US
#FINTECH
48
Rank
Investor
Rank
Investor
Nyca Partners
SV Angel
10
Spark Capital
Khosla Ventures
10
10
Blockchain Capital
RRE Ventures
10
14
QED Investors
14
Crosslink Capital
Slow Ventures
14
Blumberg Capital
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
49
410
367
286
$5.4
244
210
$3.4
$1.7
$1.0
$0.6
$1.4
$0.4
2011
2012
$1.7
$0.5
2013
Q2 Investments ($B)
$2.4
$1.3
2014
2015
$1.3
2016 YTD
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
50
120
112
95
90
$2.4
$2.6
$1.0
$1.7
$1.3
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
51
12%
5%
3%
13%
14%
2%
2%
21%
14%
4%
3%
4%
13%
14%
3%
4%
7%
15%
13%
24%
24%
29%
21%
3%
7%
14%
11%
25%
22%
30%
33%
37%
Q2'15
Q3'15
Q4'15
Seed / Angel
Series A
Series B
Series C
32%
21%
Q1'16
Series D
Series E+
Q2'16
Other
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
52
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Ann Armstrong
US National Fintech Co-Leader,
KPMG in the US
#FINTECH
53
Clover Health
$160M // Series C
Affirm
62
$100M // Series C
45
Personal Capital
42
41
34
$50M // Series E
Top Cities
San Francisco
$1.7
$1.5
$0.7
$0.5
$0.6
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
20 Deals // $510.8M
Los Angeles
Deals
2 Deals // $13.5M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
54
TruMid Financial
$36M // Series C
Transactis
33
$30M // Series E
27
23
22
20
Top City
New York
22 Deals // $201.4B
$0.3
$0.2
$0.1
$0.9
$0.2
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
55
In Q216
EUROPEAN
VC-backed fintech companies raised
$369 million
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
56
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
57
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
58
80
$1,114
80
87
$853
$303
37
$335
$20
$225
$59
$215
$52
$306
2011
2012
2013
2014
Q2 Investments ($M)
$474
$369
2015
2016 YTD
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
59
44
43
42
41
40
$474
$443
$334
$303
$369
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($M)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
60
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Sven Korschinoski
Partner, Financial Services,
KPMG in Germany
#FINTECH
61
12%
2%2%
10%
10%
33%
31%
Q2'15
10%
7%
7%
11%
5%
13%
5%
5%
5%
5%
22%
11%
14%
14%
18%
15%
28%
27%
50%
39%
Q3'15
Seed / Angel
12%
2%
7%
Series A
Q4'15
Series B
Series C
Series D
32%
37%
Q1'16
Q2'16
Series E+
Other
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
62
Q2'15
Q3'15
$1.7
Q4'15
Q1'16
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
63
$9.4
$5.6
$4.5
$2.3
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
64
THE 10 LARGEST EUROPEAN ROUNDS OF Q216 IN VCBACKED FINTECH REPRESENTED $265M IN FUNDING
Finanzcheck
Consumer loans marketplace
Series C
Tandem Bank
Digital challenger bank
Series B
N26
Mobile online banking
Series B
$46M
$40M
$32M
$15M
Azimo
Money transfer platform
Series C
$15M
$26M
orderbird
Point-of-sales platform
Series C
$23M
$34M
$14M
TransferWise
P2P money transfer service
Series D
invest.com
Alternative investing platform
Series A
Lendix
Online business loan
marketplace
Series B
AEVI
Cashless payments
solution provider
Private Equity
Spotcap
Online credit platform
Series B - II
$20M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
65
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Anna Scally
Partner, Head of Technology,
Media and Telecommunications,
and Fintech Leader,
KPMG in Ireland
#FINTECH
66
12%
88%
Q2'15
10%
23%
90%
77%
Q3'15
Q4'15
Other Investors
20%
80%
Q1'16
28%
72%
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
67
Investor
Rank
Investor
Index Ventures
Seedcamp
10
Northzone Ventures
High-Tech Gruenderfonds
10
SpeedInvest
10
Octopus Ventures
Balderton Capital
10
QED Investors
Holtzbrinck Ventures
10
10
NFT Ventures
10
Route 66 Ventures
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
68
Tandem Bank
$31.7M // Series B
Transferwise
24
$26M // Series D
19
Azimo
16
13
13
$15M // Series C
Top City
$393
$135
$277
$117
$102
London
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
11 Deals // $93M
Investment ($M)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
69
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Patrick Imbach
Head of KPMG Tech Growth,
KPMG in the UK
#FINTECH
70
Top Deals
Finanzcheck
14
$46M // Series C
N26
$40M // Series B
7
AEVI
Top Cities
$29
$121
Q2'15
Q3'15
$10
Q4'15
Investment ($M)
$107
$186
Berlin
Q1'16
Q2'16
8 Deals // $93.8M
Deals
Munich
2 Deals // $7.8M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
71
In Q216
ASIAN
VC-backed fintech companies raised
$772 million
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
72
#FINTECH
73
Singapore, meanwhile, announced the development of a Fintech Bridge with the UK during Q216 an initiative aimed at helping fintech
companies in Singapore expand into the UK and Europe while giving UK fintech companies an expansion platform for Asia. The success of
this bridging initiative is based on the development of a regulatory cooperation agreement signed by the Financial Conduct Authority in the
UK and the Monetary Authority of Singapore.
VC funding only part of the fintech investment story in Asia
While VC investment in fintech companies declined, overall fintech investment in Asia received a significant boost during the quarter with the
announcement of Ant Financials $4.5 billion funding round in April the largest ever private funding round to an internet company. Ant
Financial manages the Alipay online payments platform in China. This deal, while outside of the scope of this report, provides a more holistic
view of fintech investment in China and the keen interest that the fintech industry is receiving from all investor types.
*Reference: Bank of Tokyo-Mitsubishi says testing its own digital currency, Reuters, June 14, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
74
$2,650
59
$2,204
18
$30
$124
$261
$21
$314
$974
$19
$140
2011
2012
2013
2014
2015
Deals
Q2 Investments ($M)
$772
2016 YTD
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
75
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
James McKeogh
Partner, Management Consulting,
KPMG in Hong Kong
#FINTECH
76
40
36
33
$2.2
$1.6
$0.5
$2.6
$0.8
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Investment ($B)
Deals
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
77
15%
6%
12%
12%
12%
2%
14%
5%
3%
3%
17%
3%
11%
19%
17%
19%
33%
23%
24%
38%
37%
Q1'16
Q2'16
36%
33%
19%
14%
Q3'15
Q4'15
Seed / Angel
13%
28%
21%
Q2'15
9%
Series A
Series B
Series C
Series D
Series E+
Other
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
78
$3.9
$1.8
$1.6
Q2'15
Q3'15
Q4'15
Q1'16
$2.0
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
79
Tuliu
Online land transfer service
Series B
Qingsongchou
Online crowdfunding operator
Series B
Weidai
Internet financial
service platform
Series C
$23M $20M
$153M
bitFlyer
Bitcoin exchange
Series C
$27M
$50M
$34M
$50M
$32M
Lendingkart
Small business
lending platform
Series B
Paymax
Micro-loan service
Series C
$235M
Diyi Chedai
Auto lending startup
Series A - II
Fenqile
Micro-loan site
Series C
$25M
Capital Float
Online lending platform
Series B
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
80
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Neha Punater
Head of Fintech,
KPMG in India
#FINTECH
81
43%
39%
59%
57%
61%
Q2'15
Q3'15
Q4'15
41%
Other Investors
31%
69%
Q1'16
39%
61%
Q2'16
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
82
Investor
Rank
Investor
500 Startups
East Ventures
Life.Sreda
Accel Partners
SAIF Partners
Kalaari Capital
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
83
Fenqile
$235B // Series C
Weidai
12
11
11
$153M // Series C
Paymax
9
8
$50M // Series C
Top Cities
Hangzhou
$1.7
$0.6
$0.3
$2.4
$0.6
3 Deals // $183.2M
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Beijing
Investment ($B)
Deals
3 Deals // $43.1B
Shenzhen
2 Deals // $236.6M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
84
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
Irene Chu
Partner, Head of
High Growth Technology &
Innovation Group,
KPMG in Hong Kong
#FINTECH
85
MobiKwik
$50M // Series C
15
15
15
Lendingkart
$32M // Series B
12
Capital Float
10
$25M // Series B
Top Cities
Bengaluru
$457
$836
$62
Q2'15
Q3'15
Q4'15
Investment ($M)
$73
$156
Q1'16
Q2'16
Deals
4 Deals // $41.4M
Mumbai
4 Deals // $17.7M
New Delhi
3 Deals // $15.3M
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
86
What is excluded:
#FINTECH
87
Contact us:
Brian Hughes
Co-Leader, KPMG Enterprise
Innovative Startups Network
E: bfhughes@kpmg.com
Arik Speier
Co-Leader, KPMG Enterprise
Innovative Startups Network
E: aspeier@kpmg.com
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
88
Canada
Ireland UK Germany
Netherlands
Luxembourg
USA
Netherlands
Israel
India
Contact us:
Hong Kong
Singapore
Warren Mead
Global Co-Leader of Fintech,
KPMG International
E: Warren.Mead@kpmg.co.uk
Australia
South Africa
Ian Pollari
Global Co-Leader of Fintech,
KPMG International
E: ipollari@kpmg.com.au
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
89
About
KPMG Enterprise
You know KPMG, you might not know KPMG Enterprise.
KPMG Enterprise advisers in member firms around the world are dedicated to working with businesses like yours. Whether youre an
entrepreneur looking to get started, an innovative, fast growing company, or an established company looking to an exit, KPMG Enterprise
advisers understand what is important to you and can help you navigate your challenges no matter the size or stage of your business. You
gain access to KPMGs global resources through a single point of contact a trusted adviser to your company. Its a local touch with a
global reach.
The KPMG Enterprise global network for innovative startups has extensive knowledge and experience working with the startup ecosystem.
Whether you are looking to establish your operations, raise capital, expand abroad, or simply comply with regulatory requirements we can
help. From seed to speed, were here throughout your journey.
KPMG Fintech
In todays fast-paced Financial Services (FS) sector, technology-based businesses and solutions offer Financial Institutions the opportunity to
telescope their appetite for innovation and create powerful new business models that can enhance bottom line performance for customers
and shareholders alike. KPMG professionals use the combined strength of their renowned FS sector insight, global network of knowledge
and experience and their global relationships with the Fintech startup community to help you identify the partnership, equity investment or full
acquisition opportunities that are specifically focused on your needs and opportunities. Once you have made the strategic decision to
transform your organization, KPMG professionals work with you to implement your transformational agenda at the operational level and help
ensure that you realize the full benefits of your fintech strategy.
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
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Acknowledgements
We acknowledge the contribution of the following individuals who assisted in the development of this publication:
Dennis Fortnum, Global Chairman, KPMG Enterprise, KPMG International
Arik Speier, Co-Leader, KPMG Enterprise Innovative Startups Network, and Head of Technology, KPMG in Israel
Brian Hughes, Co-Leader, KPMG Enterprise Innovative Startups Network, and National Co-Lead Partner, KPMG Venture Capital Practice,
KPMG in the US
Ian Pollari, Global Co-Leader of Fintech, KPMG International and Partner and National Sector Leader, Banking, KPMG in Australia
Warren Mead, Global Co-Leader of Fintech, KPMG International and Partner, KPMG in the UK
Andrew Wood, KPMG Tech Growth, KPMG in the UK
Ann Armstrong, US National Fintech Co-Leader, KPMG in the US
Anna Scally, Partner, Head of Technology, Media and Telecommunications, and Fintech leader, KPMG in Ireland
Anthony Rjeily, Principal, Financial Services Digital and Fintech Practice Lead, KPMG in the US
Conor Moore, National Co-Lead Partner, KPMG Venture Capital Practice, KPMG in the US
Dorel Blitz, Head of Fintech, KPMG in Israel
Irene Chu, Partner, Head of High Growth Technology & Innovation Group, KPMG in Hong Kong
James McKeogh, Partner, Management Consulting, KPMG in Hong Kong
Jan Reinmueller, Head, Digital Village, KPMG in Singapore
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms
are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or
bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to
obligate or bind any member firm. All rights reserved.
#FINTECH
91
kpmg.com/fintechpulse [website]
@kpmg [Twitter]
www.cbinsights.com [website]
@cbinsights [Twitter]
2016 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of
independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm
has any authority to obligate or bind KPMG International or any other member firm vis--vis third parties, nor does KPMG
International have any such authority to obligate or bind any member firm. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice after a thorough examination of the particular situation.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
#FINTECH
92