In Q2'16, global funding to VC-backed fintech companies dropped substantially. Despite this quarter's decline, funding is on pace to exceed 2015 investment levels.
Given global market uncertainties associated with the UK Brexit vote and its initial impact, the approaching US 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. It is expected that this cooling-off period may last through the remainder of the year as investors take a 'wait ans see' approach expecting market conditions to stabilize over the next few months.
Source : KPMG