10 Jun Disruptions Driving FinTech Investing
The global FinTech marketplace is experiencing significant changes as new and disruptive technology is having a major impact on products, services and business models.
There is a wave of capital flowing into startups looking to disintermediate the major financial institutions. All of a sudden, there are significant investment opportunities in a market ready to embrace new and innovative technologies.
This white paper will explore why the FinTech market is attracting so much attention, it will highlight the two distinct segments of the FinTech landscape, and look at some of the key factors driving innovation and investments. It will also provide thoughts about how Information Venture Partners sees the FinTech landscape and where its investment efforts are focused.
The Dawn of FinTech 2.0?
While the spotlight may be shining on the FinTech market, it is not a new phenomenon. Over the past five years, investment in FinTech start-ups has been steadily growing. According to CB Insights, in 2013, there was more than $3 billion of global financing activity. This represents a nearly 3-fold increase since 2008 in dollars invested and companies financed.
Investments in North American continue to lead by a significant margin but the rest of the world has experienced faster growth, especially in 2012/2013. Canadian investment in FinTech is not tracked, although, anecdotally, it is not proportional to the presence that our financial institutions have globally.
Download the complete report here
At the end, for all the excitement about FinTech investing, it is important to remember this is not a new trend. Financial institutions have been investing billions of dollars in technology. We know, as we have been investing in this market for more than a decade. We are, however, entering a new and dynamic phase for FinTech, driven by the Web, mobile and cloud computing, consumer expectations, regulatory changes and myriad other reasons. This is creating unprecedented investment opportunities for companies that can identify and develop innovative technologies to help financial institutions improve the customer experience and technology operations.
No Comments