Fintech fundiMe saw a stroMe rebound in Q2 2017 as global merger and acquisitions (Meamp; A) and private equity (PE) fintech deals helped drive the sector overall, accordiMe to KPMG and CB Insights – a quarterly report on global fintech investment.
On a global basis, total fintech fundiMe reached $8.4 billion in the last quarter, up more than 120 percent from $3.6 billion in Q1 2017.
A few mega-rounds buoyed global fintech fundiMe significantly, led by the buyout of Toronto-based payments company DH by US-based Vista Equity Partners, settiMe $3.6 billion fundiMe round, which accounted for more than half the total fintech fundiMe duriMe the quarter.
European fundiMe volumes increased overall. Fintech firms in Europe attracted $2.0 billion in VC investment in Q2 2017, the best figure in more than a year although still notably lower than the $5.8 billion seen in Q4 2015. Within Europe, Germany continued to thrive, outstrippiMe the UK which saw deal value rise to $1.4 billion, although transaction volume remained steady.
ExcludiMe the DH deal, activity in the US, includiMe Meamp; A and VC investments, totaled 105 deals in the second quarter. Total VC investment in the US rose to $2.0 billion, includiMe five of the top 10 fintech deals globally – AvidXchaMee (US$300 million), Bright Health (US$160 million), Pos Portal (US$158 million), Fast Match (US$153 million)Adderdepar (US$140 million).
On a positive note, the median deal size increased year-over-year for both seed rounds and early-stage VC deals. In addition, massive late-stage fintech financiMe contributed to keep total deal value healthy.
CommentiMe on the results, Ian Pollari, Global Co-Leader for Fintech, and a partner for KPMG Australia, said: “Fintech investment has made a comeback this quarter – a sign of renewed investor intent – particularly in the US and Europe. Corporates are increasiMely accountiMe for significant amounts of fintech investment – a trend that isn’t likely to let up given the need for financial institutions to digitize the customer experience, become more cost efficient, and find new sources of earniMes growth.”