After a significant drop-off in Q4’15, investment in VC-backed fintech companies roared back to life in Q1’16, lifted by a number of $100M+ mega-rounds, including Lu.com and JD Finance in Asia and Betterment and Oscar Health Insurance in North America.
With interest in fintech continuing to branch outward beyond the traditional payments and lending space to robo advisory, InsuranceTech and RegTech among other areas, it’s not surprising that fintech investments are bucking trends in all regions of the globe. While economic uncertainty has caused some investors to hesitate with respect to making more traditional VC investments, they continue to see fintech as an area of opportunity and long-term growth. This resilience and ongoing interest likely bodes well for the remainder of 2016.
Over the quarter, we saw continued collaboration between the fintech sector and corporate players, with an increasing number of banks, financial institutions and insurance companies forging partnerships with fintech companies, accelerators and incubators in order to drive innovation within their own organizations.
Source : KPMG