A KPMG report released on August 1st detailed the rebound of global fintech investment, showing that total investment for Q1 2017 in fintech companies doubled from the prior quarter, reaching over $8.4 billion in total. The report entitled the “Pulse of Fintech” indicated that a sizable increase in private equity (PE) and M&A funding propelled the increase, while venture capital total investment was relatively steady.
The report reviewed the current fintech market and its 4-quarter high, saying, “Deal volume at the end of Q2’17 was also on track to approach 2016’s tally of over 1,000 deals, despite an ongoing slide in angel and seed-stage deal volume, which extended to a fifth-straight quarter. The relative stability across other investment stages suggests that while there may be some caution in the VC market globally, investors remain interested in tangible fintech opportunities.”
Corporates are driving VC investment in fintech globally with corporate participation in global VC deals reaching a new high of 21 percent during the first half of 2017, up from 17 percent in 2016. Globally, Corporates participated in $2.6 billion worth of VC to fintech companies in the first half of 2017 with Asia continuing to see much higher levels of corporate participation versus other regions, 37 percent in Q2’17 alone, compared to 21 percent in the US and 24 percent in Europe in Q2’17. The report indicates that Corporates are expected to continue driving future fintech investments.
The report details the importance of blockchain to corporations and venture capital investors, while projecting other technologies expected to show high investor interest that includes robotics, cloud computing, and artificial intelligence.
The report is provided by KPMG International, comprised of firms functioning as legally distinct, separate entities, with KPMG Fintech leveraging its insight through 30 fintech hubs around the globe to help startups or established companies cope with the transforming landscape of fintech operations.
