Related Fintech is reaching a new level of maturity, and it is showing in the money backing it. The technology movement that promised to displace — or at least challenge — the norms of banking is moving beyond the garage stage and is being taken seriously, but investors are getting choosier, too. The $2.5 billion in venture capital investments in the second quarter were nearly half of what they were in the first quarter and a year earlier, according to a report issued Wednesday by KPMG and CB Insights titled " The Pulse of Fintech ." Here are a few takeaways from the report, along with commentary from leaders in the sector. The Drop Given the strong first quarter, 2016 is still on track to top the $14.6 billion raised last year. Yet CB Insights and KPMG say the second-quarter drop is a mix of macroeconomic issues and sector-specific growing pains. "Given global market uncertainties associated with the U.K. Brexit vote and its initial impact, the approaching U.S. presidential election, ongoing concerns about valuations and significant headwinds in the marketplace lending space, it was not surprising to see VC investors taking a pause, particularly from making significant fintech mega-deals," wrote the leaders of the KPMG fintech practice leaders in the report. Additionally, others say that although venture capital investors remain fixated on fintech, they are tightening their standards. "VC has become more realistic about what to expect from startups, it seems," said Manuel Silva, a partner at Santander InnoVentures. "Investment goes to companies that share a similar vision, understand how to execute on their business plan and manage resources adequately," Matt Wong, a senior analyst at CB Insights, agreed. "We are definitely seeing venture capital paying closer attention to plans. There is more scrutiny," Wong said. Wong also noted […]
