The top 10 most active investors in FinTech made over 600 deals since 2014

Over 10% of FinTech deals globally in the last three years were backed by at least one of the top 10 investors

Serial accelerator 500 Startups was the most active FinTech investor since the start of 2014 with 105 deals made. It is followed closely by another accelerator – Y-Combinator which backed 102 deals in the same period. The ranking is heavily dominated by US-based investors with seven representatives, which were behind over two-thirds of the total deals made by the top ten most active FinTech investors. The remaining three are all based in the UK – Startupbootcamp, Index Ventures and Seedrs.

Sequoia Capital was behind deals that added up to over $2.5bn worth of funding to FinTech companies – the highest among the top 10 most active FinTech investors

  • New York-based Sequoia Capital participated in the largest total investment out of the VCs in the ranking with over $2.5bn. The largest funding round Sequoia backed was a $160m Series C round led by Greenoaks Capital to technology healthcare provider Clover Health in mid-2016.
  • Khosla Ventures was second in terms of total volume of FinTech deals backed but achieved this in fewer deals. As a result, the firm had the highest average round size of any of the investors in the ranking with $47.8m.
  • Mountain View-based 500 Startups’ deals added up to the largest total FinTech investment participation of any of its fellow earlier-stage investors with over $150m worth of funding.

 

Payments & Remittances companies attracted the most investments by the top 10

  • If we split the top ten investors into two groups – VCs and earlier-stage investors in accelerators and funding platforms – Payments & Remittances, Marketplace Lending, WealthTech and Infrastructure & Enterprise are part of the top six sectors that attracted the most deals for both groups.
  • However, the VCs in the ranking focused most of their investments into technology intensive sectors such as Blockchain and Cryptocurrencies, while the accelerators and funding platforms saw opportunity in backing InsurTech and Real Estate companies.
  • The accelerators and funding platforms also had a wider spread of their portfolio than their VC counterparts. Under a quarter (22.5%) of VCs total investments went into FinTech sectors outside of their six most frequent. Accelerators and Funding Platforms’ investments were less focused however, with over 30% going into sectors outside of the top six.

The top 10 most active investors’ deals add up to over 10% of the total funding to the FinTech sector since 2014

  • 10.5% of the $75.5bn worth of investment into the FinTech space since the start of 2014 is comprised of funding rounds that had at least one of Sequoia Capital, Khosla Ventures, Index Ventures, Ribbit Capital, or Digital Currency Group as investor.
  • Adding the accelerators and funding platforms that complete the top most active investors to that group only increases the share by 0.4% to 10.9%.
  • The top ten most active investors in FinTech from 2014 to the end of Q1 2017 participated in 633 deals collectively during the period. This figure is 10.4% of the total number of deals in FinTech during the same period.

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

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