FinTech Investments in Ireland are on track for a record year after a strong first quarter

Irish FinTech companies raised $42.8m across 9 deals in Q1 2017, putting it on track to surpass last years’ total deal tally

Total FinTech funding in Ireland has progressively increased YoY since 2014 at a 59.7% CAGR. Last year saw the number of deals almost double and investments increase by 84.2%. However, this huge growth in total funding is mostly due to a $170.5m debt and equity round raised by Future Finance in March 2016. Excluding this deal, investments (below $100m) actually fell by 34% last year. However, Q1 2017 saw a strong start to the year, with Irish FinTech companies receiving 45% of the $95.1m invested in deals valued between $0-$100m in 2016.

More than 50% of deals since 2014 went to Irish FinTech companies specialising in three FinTech Sectors – Payments & Remittances, Marketplace Lending and RegTech

  • Payments & Remittances companies received the highest number of deals in Ireland between 2014 and Q1 2017. Last year saw a total of $80.6m invested in the sector. The most notable deals of the year went to money exchange company CurrencyFair, which raised a total of $18.8m across two deals and P2P payments company Circle, which received $60m in its series D round.
  • Marketplace Lending companies received the second highest number of deals in the same period. This sector also received the largest deal in Q1 2017 with GRID Finance, SMEs financing options provider, receiving $31.8m in February.
  • The third largest sector is RegTech with companies such as Fund Recs, which offers fast valuations and custom reporting, receiving three investments in the period.

The top 10 FinTech deals in Ireland raised $0.3bn over the last five quarters, 97.5% of total FinTech funding in the country during that period

  • Marketplace Lending company Future Finance received the largest FinTech investment to date in Ireland, raising $170.5m in March 2016. The round consisted of a $27.2m equity and $143.2m debt funding.
  • The top ten deals in Irish FinTech companies received a combined amount of $294.6m over the last 5 quarters, which equates to 97.5% of investment in Irish FinTech in this period.
  • Three of the top ten deals over the last five quarters went to marketplace lending companies. Future Finance, GRID Finance, and Currency Fair received a combined total investment of $205.7m since the start of 2016. Despite receiving 30% more deals than Marketplace Lending companies the three deals to Payments & Remittances companies in the top ten received a combined total of only $77.8m.
  • The other four deals were made up of; RegTech company AQ Metrics, InsurTech specialist ClaimVantage and Infrastructure & Enterprise Software companies Moqom and Global Shares.

The 10 most active FinTech investors in Ireland participated in almost 40% of deals between 2014 and Q1 2016

  • 37.9% of all investments in Ireland between 2014 and Q1 2017 had at least one of the top ten investors as participant.
  • Two of the top ten investors are based in Ireland; Enterprise Ireland and Kernel Capital. Of the other eight; Frontline Ventures, Octopus Ventures and Wayra are based in the UK, and the remaining five are based in the US.
  • Enterprise Ireland has made the most investments in the Ireland-based FinTech companies since 2014. The largest round they participated in during this time was a $3.25m venture round to AQ Metrics, a provider of automated risk monitoring and regulatory reporting. The second most active investor Frontline Ventures also participated in this round.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies in Ireland 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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