More than $3.5bn was invested in Data & Analytics companies globally in 2018
- The Data & Analytics subsector of FinTech includes companies that provide solutions addressing Big Data, Financial Research & Analytics and Credit Scoring.
- Just under $11.2bn was raised by Data & Analytics companies between 2014 and Q3 2019, with 34.5% of this capital invested in transactions valued at $100m and above. This growth was driven by record funding in 2018 which exceeded $3.5bn last year, of which 40% was invested in $100m+ deals.
- Funding in the first ninth months of 2019 has surpassed $1.1bn, with almost 100 transactions completed during the period. Big Data analytics company Databricks raised $250m in a Series E round, led by Andreessen Horowitz in February, to fund expansion into the APAC region. This was the largest deal in the subsector this year, giving Databricks a post-money valuation of over $2.7bn.
The proportion of sub $1m deals fell by more than half between 2014 and Q3 2019
- The subsector has shown continued signs of maturity as the proportion of sub $1m deals fell by more than half from 41.2% of transactions in 2014 to 18.3% in the first three quarters of 2019.
- Concurrently, the maturing sector witnessed a shift to more later-stage transactions with the share of deals valued above $25m increasing from less than 10% in 2014 to a fifth of deals during the first nine months of this year. This changing composition of deal sizes in the Data & Analytics subsector saw average deal sizes grow year on year from $6.3m in 2014 to $21.1m in 2018.
- Automation Anywhere is a leading Robotic Process Automation solutions provider based in San Jose, that uses big data and bots to automate business processes for Financial Institutions and companies in other industries. The company raised $300m in a Series A round led by SoftBank Vision Fund in November 2018. This the largest Data & Analytics deal to date, valuing the company at $2.6bn.
Over half of the deals since 2014 have involved Data & Analytics companies based in North America
- There were almost a thousand Data & Analytics deals completed between 2014 and Q3 2019, with $11.2bn raised across these transactions, producing an average deal size of $11.3m.
- The Big Data revolution has been spearheaded by North America and Europe and findings from Accenture show how CFOs and financial leaders can help banks, capital markets firms and insurers mine the value in data, and help build a data-driven enterprise. With the big data revolution, CFOs will know more than ever about the dynamics of business environments.
- North American Data & Analytics companies were involved in more than half of the deals that occurred between 2014 and Q3 2019, with just under a quarter of deals involving companies based in Europe.
- ayfie Group provides search and text analytics solutions that bring structure to unstructured data. The Oslo-based FinTech raised $10m in August 2019, to accelerate its growth and extend its product offerings building on its reach in the FinTech and LegalTech markets. The funding will be invested in growing the North American commercial team in the new Denver office and raising ayfie’s global market awareness with additional marketing and sales activities. This was the largest deal in the subsector in Europe last quarter.
Companies in the US dominated the top 10 Data & Analytics deals last quarter
- A breakdown of the top 10 Data & Analytics deals last quarter shows six companies based in the US, two in China, one in India and one in Europe. $225m was raised across these transactions, accounting for more than 90% of the capital invested in Q3 2019.
- AlphaSense is an AI-powered search engine for market intelligence used by financial institutions to acquire critical business insights and data with speed and conviction. The company, which is based in New York, raised $50m in a Series B round led by Innovation Endeavors, which was the largest Data & Analytics deal globally last quarter.
- Shanghai-based IceKredit leverages AI to make all-rounded credit evaluation of individuals and SMEs. The credit scoring solutions provider raised $47m in a Series C round led by Yunqi Partners and Shanghai International Group in September 2019. This was the largest deal in the subsector in Asia last quarter and IceKredit plans to use the funds to expands its big data and AI capabilities, grow its international presence and explore M&A opportunities.