After 2015’s record-setting $46.7 billion in global funding to fintech companies, 2016 brought reality back to the market with an almost 50 percent slide in fintech investment at $24.7 billion in annual fintech funding. In the US, total funding for fintech companies and deal activity also dropped significantly in 2016, down to $12.8 billion from $27 billion in 2015, a result of political and regulatory uncertainty, a decline in megadeals and investor caution.
In this edition of The Pulse of Fintech – a quarterly report on global fintech trends produced by KPMG – we look back at 2016 as a whole and explore a number of questions that are top of mind for fintech investors today, including:
During 2016, investors in a number of regions saw some saturation within the more mature fintech areas, particularly in payments and lending. Enthusiasm for burgeoning fintech areas, however, helped keep interest in fintech high overall. Insurance tech (insuretech), regulatory tech (regtech), artificial intelligence (AI) and data and analytics each drew significant investor attention, with a positive outlook for further growth over the next 12 months.
For further analysis of global and regional venture capital activity and trends, contact our professionals in the Venture Capital practice. Visit www.kpmg.com/us/venturecapital
KPMG’s Venture Capital practice offers audit, tax and advisory services tailored for venture-backed startups and the next generation of leading companies. Whether you are launching a new company, expanding abroad, complying with regulatory pressures or planning an exit – our global teams are there to help at each stage of growth. Our passion and mindset matches the companies we serve: entrepreneurial, hands-on, proactive, visionary, and dedicated.
KPMG and The University of Michigan Ross School of Business have collaborated to create QuantumShift, an entrepreneur recognition/leadership program for leaders of private, high-growth companies.
Grow your business, your profile, and yourself. QuantumShift empowers entrepreneurs and transforms businesses.