Depriving Banks & Insurances, VC Backed Fintech Startups $13.8 Billion Funding In 2015

March 10
7:44 PM 2016

KPMG International and CB Insights furnished report shows that venture capital (VC) backed fintech firms across the globe, have secured $13.8 billion in funding. The fintech firms have started exerting serious impact in every area of banking and insurance.

Fintech funding has grown double during last year compared to just $6.7 billion in 2014. Meanwhile, the number of deals has also increased from 586 to 653 last year.

The report also shows that private funding has flown relatively free into the fintech industry in 2015. The inflow of funds has fueled an overall trend of the startups to opt for staying private for longer, according to a report published in Bloomberg.

Corporate entities are becoming increasingly active while participating in at least a quarter of all fintech deals for three quarters straight. Citigroup appears as the most active bank-investor over the past few years and Goldman Sachs follows by, reports Finextra.

Consultants KPMG and venture capital information provider CB Insights have published the report on Wednesday showing a huge surge in investment. The report represents 2015 as a year of 'mega rounds', facilitating more than 60 rounds investing funds of $50 million (£35.2 million) during last year alone. The figures may be compared to just 15 between 2011 and 2013, reports Business Insider.

'The Pulse of Fintech' report has also represented 2015 as the year at which fintech has entered the mainstream. Almost every major banking and insurance process is being targeted by fintech companies globally either to disrupt the incumbent or to enable them to serve their customers better.

Largest VC backed deals of the year includes multiple rounds for Social Finance Inc. topping $1 billion, Prosper Marketplace Inc. at $165 million and Zenefits at $500 million. However, Zenefits' last funding has taken place in May, 2015 before resignation of its CEO under regulatory issues and the startup is reportedly under investigation by state regulators.

Funding has tapered off during the end of the year since markets have been roiled by intense volatility and general investor uncertainty. But KPMG and CB Insights predict, the decline won't last for very long. The report observes the dropping as a reflection of growing caution across all areas of VC investment instead of a caution with fintech in particular.

KPMG International and CB Insights have furnished a report on Wednesday describing global funding scenario in fintech startups under venture capitalization. VC backed startups has been able to raise $13.8 billion funds which is just double than the previous year. The report searchers reasons for booming of VC in fintech startups and analyzes different aspects of such funding.

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