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Venture capital-backed fintech funding declined to $2.4 billion in the July-September quarter, while deal activity fell 12 per cent to 178 deals, a new report showed.
Pulse of Fintech, a quarterly report on global fintech venture capital (VC) trends, published jointly by KPMG International and CB Insights, highlights that VC-backed global fintech deal activity fell for the second consecutive quarter, marking its lowest level since the April-June 2014 quarter.
Asia tops USWhile the number of VC-backed fintech deals dropped to a five-quarter low in Asia, funding increased 50 per cent on a quarter-over-quarter basis to reach $ 1.2 billion.
Year-to-date results suggest Asia-based fintech investment for 2016 could top last year’s peak investment results, the report showed.
“This quarter, Asia outpaced North America in terms of fintech funding — a major shift from historical norms,” says Warren Mead, Global Co-Leader of Fintech, KPMG International.
“The question is whether Asia will continue to set the pace headed into 2017. With the diversity of investments and widespread support for the growth of fintech hubs in the region, its a very distinct possibility.”
Anand Sanwal, CEO of CB Insights, said: “While we continue to see significant investment into fintech companies globally, the euphoria for mega-deals that we saw in the latter half of 2015 has waned. Total investments in key areas, like marketplace lending and blockchain technology, have both declined heading into the tail end of 2016.”
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