2016金融科技风险投资图景（英文版）_32页_5mb

2016 VC Fintech Investment Landscape Summary

Core Content

The 2016 global venture capital (VC) Fintech investment landscape saw a total of $17.4 billion raised across 1,436 deals, representing a 10.9% year-over-year (YoY) increase. China and the US dominated the investment scene, with China raising $7.7 billion (up 84% YoY) and the US raising $6.2 billion (down 12.7% YoY). The UK, while experiencing a 33.7% decline in VC investment to $783 million, remained a key player in the global Fintech ecosystem, ranking third in total investment and second in deal volume with 173 deals.

Despite the overall decline in UK investment, Q3 2016 saw a rebound, with 9 of the top 20 global deals completed in the 6 months following the Brexit referendum. The UK also retained its global third-place ranking. The top UK deals in 2016 included Starling Bank (challenger bank, $101.0 million), iwoca (alternative finance, $57.0 million), and Nutmeg (robo advice, $52.2 million). Starling Bank was the only UK Fintech to make the global top 20 deals.

Key Points

Global Investment Trends

• China surpassed the US as the largest recipient of Fintech investment in 2016, with $7.7 billion across 28 deals.
• Three mega-rounds in China exceeded $1 billion:
  • Alipay (Ant Financial): $4.5 billion
  • Lufax.com: $1.2 billion
  • JD Finance: $1.0 billion
• 500 Startups was the most active global investor in 2016, with 39 investments.
• Startupbootcamp and Techstars were also top investors with 36 and 30 investments respectively.

UK Investment Trends

• UK investment dropped 33.7% YoY to $783 million, largely due to Brexit uncertainty and geopolitical/macroeconomic factors.
• Q2 2016 investment slowed significantly compared to Q2 2015, and Q4 2016 also underperformed by 39%.
• Post-Brexit investment totaled $368 million, with 8 of the top 20 UK deals closing after the referendum.
• Non-domiciled VCs accounted for 46% of UK investment, with Europe (19%) and US (18%) being the main sources.

Top Fintech Verticals

• The top three UK Fintech verticals by investment were:
  1. Alternative Lending / Financing (24%)
  2. Challenger Banks (20%)
  3. Wealth Management (10%)
• Money Transfer & FX also accounted for 10% of investment.
• RegTech emerged as the most common vertical in 2016, with 25% of London Fintech accelerator cohorts.

M&A Activity

• No notable Fintech IPOs occurred in 2016, unlike 2015 which saw Square and Worldpay go public.
• The largest exit was Markit's $5.5 billion merger with IHS.
• FinTech M&A activity is expected to rise in 2017 as more mature companies emerge.

Equity Crowdfunding

• UK equity crowdfunding investment into Fintech totaled $37.9 million in 2016.
• 45% of this came from crowdfunding platforms, indicating growing interest in alternative finance methods.

Summary of Key Figures

Main Investors

• Global: 500 Startups (39 deals), Startupbootcamp (36 deals), Techstars (30 deals)
• UK: Techstars and FinTech Innovation Lab (US-based accelerators), with 46% of investment from non-domiciled VCs.

Outlook

• Fintech M&A activity is anticipated to grow in 2017.
• Equity crowdfunding is becoming a significant fundraising method for Fintech companies.
• RegTech and Blockchain are expected to play a larger role in the Fintech landscape in 2017.

Appendix

Vertical Definitions

• Alternative Lending / Financing: P2P lending, invoice financing, SME financing, e-lending platforms, credit scoring
• Capital Markets: Innovation in primary issuance, securities trading, M&A, trade and advisory services
• Challenger Banks: New digital banks challenging traditional High Street banks
• Crowdfunding: Platforms enabling investment in projects, companies, or property
• Cyber Security: Technology to protect company infrastructure
• Data & Analytics: Use of data for financial decision-making
• Digital Currencies & Blockchain: Digital ledger technology for recording transactions
• Enterprise Software: Software solutions for financial services
• Financial Inclusion: Delivery of financial services to the unbanked
• InsurTech: Technology applied to the insurance industry
• Money Transfer & FX: International remittance and currency conversion
• Payments: Innovations in payment systems, including cashless, online, mobile, and B2B
• RegTech: Technology for regulatory compliance in finance
• Wealth Management: Innovation in pensions, savings, and personal financial management

Methodology

• VC deal value includes angel, accelerator/incubator, crowdfunding, VC (all rounds), and private equity (growth/expansion rounds).
• Deal volume includes all deals, even those without disclosed values.
• UK VC investment refers to companies headquartered in the UK.