Two thousand fifteen was the year fintech – including blockchain technology – entered the “mainstream,” signified by a groundswell of venture capital (VC) investment.
More than $13.8 billion in venture capital (VC) was invested in a variety of fintech companies globally, more than twice the amount invested in 2014, according to “The Pulse of Fintech 2015 Review,” a global analysis of fintech venture funding by KPMG and CB Insights. VC deal volume also jumped, from 586 in 2014 to 653 in 2015.
A key to fintech’s growing prominence in the VC community is the diversity of interests the segment encompasses. Fintech companies are targeting nearly every major banking and insurance process, disrupting the incumbents or enabling them to serve customers better or lowering costs.
Fintech’s scope and evolution make it critical for VC investors. This report examined global and regional trends. It also focused on blockchain. Blockchain Investment Soars
VC-backed investment in bitcoin and blockchain companies jumped from $3 million in 2011 to $474 million in 2015. The number of deals rose from two in 2011 to 75 in 2014 and 74 in 2015.
The leading bitcoin and blockchain deals were: 21 Inc., $111 million; Coinbase , $75 million; and Circle Internet Financial, $50 million. The top cities for this investment were: San Francisco, 13 deals, $261.7 million; New York City, five deals, $26.3 million; and Austin, five deals, $3.3 million.
“Blockchain is a notable example of an emerging technology that offers enormous potential to the financial services industry, however this needs to be balanced with the reality that substantial barriers must be overcome in order for this potential to be realized,” said Ian Pollari, global co-leader of fintech at KRMG International and a partner in KPMG in Australia. Why VC Interest Surges
nterest in blockchain is gaining momentum. A wide range of […]
