Select Page

In the face of tough market conditions at the start of this year, fintech firms seem to be recording better performance.

Figures from PitchBook, a data specialized firm, shows that venture capital (VC) totaling $1.8 billion was received by fintech startups in the first quarter (Q1) of 2016. This is a 13% increase from what was raised in the same quarter of last year, and a 44% increase from the $1.25 billion that was raised in the fourth quarter (Q4) of 2015.  

A total of 106 deals were closed in Q1 of 2016, a 4% increase from Q4 of 2015. However, this was a 10% decrease year-over-year.

Generally, the fluctuation in the sector has not been very big. This is despite the fact that funding dropped by 66% in Q4 of 2015. Everybody agrees that this drop was due to the abnormal funding raised in Q3 of 2015. During this quarter, around $3.7 billion were being invested in fintech startups.

 

How VC Investments Keep Increasing by the Quarter

At least $1 billion in venture capital has been invested in the sector during each quarter

 

In the past 5 years, there have been a total of 1,846 deals in the fintech sector which have raised venture capital amounting to $22.4 million. During this same period, a total of 1,252 venture capitalists have participated in those deals. Since Q1 of 2014, at least $1 billion in venture capital has been invested in the sector during each quarter. The top investors with some of their investments are as follows:

 

  1. Digital Currency Group establishes and supports blockchain and bitcoin companies. It has invested in 35 companies including Tradeblock, Bitpay, Ripple and Grayscale.
  2. Sequoia Capital has made 30 investments including Prosper, Square and WeLab.
  3. SV Angel has made 28 investments including Kabbage, TransferWise, LendUp and Credit Karma.
  4. Blockchain Capital offers support to startup managers involved in blockchain technology leverage. They have made 27 investments including Coinbase, BitFury, Freshpay and Kraken.
  5. Andreessen Horowitz and Index Ventures – each of them have made 22 investments. Andreessen has invested in Coinbase, LendUp and Dwolla, among others, while some of Index’s investments include TransferWise, Wealthfront and Osper.
  6. Accel and Nyca Partners – each have invested in 21 companies
  7. Kima Ventures has made 20 investments.
  8. QED Investors has made 19 investments.

 

 

Subscribe Now to Stay Updated

* indicates required






×