Angel investors make up nearly a third of the total number of active FinTech investors since 2014

Over 1,600 angel investors have participated in FinTech funding rounds in the past three years

There were 1,666 active angel investors in FinTech since the start of 2014. This translated to 32.3% of the total number of unique investors in the sector during that period. The remaining 67.7% comprised of VCs, investment banks and other financial institutions. The group of angel investors backed 1,010 deals, 16.6% of all deals in the FinTech sector since 2014. 521 of the total number of angel backed deals contained more than one individual investor, while 16.3% of all deals had four or more angels participating as co-investors, showing that most angels prefer to share the investment risk.

Angel investor activity rallied in Q1 2017 after continuous declines throughout 2016

  • The number of deals decreased continuously in each quarter throughout 2016, from over 100 deals in Q1 2016 to only 49 deals in Q4 2016, a decrease of over 50%.
  • Q1 showed signs of recovery for angel investment activity, with the first rise in the number of deals happening in the period. Q1 2017’s figures however are still dwarfed by Q1 2016’s totals, with over $300m less total investment and over 40 less deals.
  • The largest deal to contain an angel investor in Q1 2017 was for US-based Real Estate analytics company HouseCanary, which received a $33m Series A round facilitated by Alphabet’s Executive Chairman Eric Smidt, with co-investment coming from ECA Ventures, Bryant Stibel Investments, and Morpheus Ventures.

9 out of the 10 most active angel investors in FinTech are US-based

  • The top ten angel investors made 150 investments combined during the period. Out of all deals that had one or more angel backers, 14.8% had at least one of the top ten most active angel investors as participant.
  • Nine out of the ten most active angel investors in FinTech are based out the US. Chris Adelsbach – Managing Director of the Techstars FinTech Accelerator in London being the only exception. He participated in 33 deals in a personal capacity across the period.
  • Six of the nine US-based investors are based out of the San Francisco Bay Area: Daniel Curran, Tim Draper, Max Levchin, Ron Suber, Peter Thiel, and serial tech industry board member Scott Banister. The remaining three are comprised of New York-based duo Fabrice Grinda and Tom Glocer, and LA-based Brendan Wallace.

Over a fifth of angel deals since 2014 were to Payments & Remittances focused companies

  • Payments & Remittances companies attracted the most interest from angel investors. The sector saw 211 deals containing one or more angel backers – a 20.9% share. The largest Payments & Remittances funding round with angel participation was received by India-based One97 Communications. Ratan Tata – prominent Indian industrialist and investor, participated in the $200m funding round in 2015.
  • The second most attractive sector was WealthTech, which took a 12.5% share of investments – the equivalent to 126 deals. A notable deal in this sector was US-based Robinhood’s $13m funding round back in 2014. The investors included familiar faces in the tech space with Path co-founder Dave Morin, among others. The deal was also notable for household names in the entertainment industry who also participated, with the likes of Snoop Dogg and Nasir Jones, along with Hollywood actor Jared Leto serving as co-investors.
  • The five smallest sectors are comprised in ‘Other’ due to each of them being invested 50 times or less during the period. These include Blockchain and Cryptocurrencies, among others.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on angel investment activity as well as across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global

 

 

 

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