Personal Finance is a subcategory of the WealthTech sector which has raised more than $6bn globally between 2014 and H1 2019, across 637 transactions. Funding grew at a CAGR of 74.2% between 2014 and 2018, with deal activity growing 1.75x during the period.
Investment in Personal Finance peaked in 2018 when $2.1bn was raised across 126 transactions. H1 2019 has seen a drop in both investment and deal activity, with the first half of the year making up only 35% of last year’s funding, and only 41.3% of last year’s deal activity. This drop appears to be due to a lack of smaller deals under $50m, with only 39 deals of this size in 2019 compared to 57 in the first half of 2018. The drop in small deals can be put down to the fact investors are doubling down on already established players in the space and participating in their later-stage rounds of funding.
The largest transaction in the subsector to date came from Credit Karma’s $500m secondary market funding in Q1 2018 lead by Silver Lake Partners, which will acquire a significant minority stake in the company. Credit Karma offers a range of personalised tools using advanced data modelling to help customers improve their financial standing, including improving their credit health and filing income taxes.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2019 FinTech Global
