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New Innovate Finance report reviews 2016 fintech investments

Innovate Finance provides a detailed review of The 2016 Global Venture Capital Fintech Investment Landscape in newly published report. Global investment saw a 10.9% increase over 2015; however, the total number of global fintech deals fell by 11.2% compared to 2015.

This month UK non-profit fintech membership network Innovate Finance published its detailed review of the 2016 VC Fintech Investment Landscape. The publicly available presentation offers useful visualisations of data and numerous tables and figures, in addition to clearly outlined noteworthy data and developments.

According to the data, global venture capital in fintech rose by 10.9% to reach USD 17.4 billion in 2016, and a total of 1,436 deals took place. China was the clear leader this year, with a total of USD 7.7 billion in investments, which outpaced the United States’ USD 6.2 billion. This was in part helped along by a number of ‘mega-rounds’ that took place in China throughout the year, including the largest to date – USD 4.5 billion for Alipay. Other noteworthy data points included, for instance:

  • Most active global investor in 2016 with 39 investments was seed fund & accelerator, 500 Startups
  • Accelerators Startupbootcamp and Techstars were also amongst the most active global investors, with 36 and 30 investments respectively
  • The UK attracted $783m of VC investment, down 33.7% on 2015. The UK ranked third globally in total investment behind China and the US, and second in terms of deal volume with 173 deals
  • Q2 2016 investment slowed dramatically compared to Q2 2015, which many in the community attribute to the general uncertainty in the run up to the Brexit referendum on 23rd June 2016
  • However, 8 of the top 20 deals closed post-Brexit, with the post-Brexit investment totaling $368m, just under half of the total UK investment for 2016
  • The 3 biggest fintech verticals for UK investment were Alternative Lending / Financing (24%), Challenger Banks (20%), Wealth Management (10%) and Money Transfer & FX (10%)
  • 46% of investment into the UK was from non-domiciled VCs, largely coming from Europe (19%) and US (18%)

To see the full report from Innovate Finance, click here.

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