CB Insights Global Fintech Report Q1 2017

THE GLOBAL FINTECH REPORT: Q117
A comprehensive, data-driven look at global financial technology

investment trends, top deals, active investors, and corporate activity.
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TABLE OF CONTENTS
# SECTION
7 Summary
9 Global Trends
27 North America
39 Europe
51 Asia
WHAT THIS REPORT COVERS
While fintech covers a diverse array of companies, business models, and technologies, companies generally fall into several key verticals, including:
Lending tech: Lending companies on the list include primarily peer-to-peer lending platforms as well as underwriter and lending platforms using machine
learning technologies and algorithms to assess creditworthiness.
Payments/billing tech: Payments and billing tech companies span from solutions to facilitate payments processing to payment card developers to
subscription billing software tools.
Personal finance/wealth management: Tech companies that help individuals manage their personal bills, accounts and/or credit, as well as manage their
personal assets and investments.
Money transfer/remittance: Money transfer companies include primarily peer-to-peer platforms to transfer money between individuals across countries.
Blockchain/bitcoin: Companies here span key software or technology firms in the distributed ledger space, ranging from bitcoin wallets to security
providers to sidechains.
Institutional/capital markets tech: Companies either providing tools to financial institutions such as banks, hedge funds, mutual funds, or other institutional
investors. These range from alternative trading systems to financial modeling and analysis software.
Equity crowdfunding: Platforms that allow a collection of individuals to provide monetary contributions for projects or companies provisioned in the form
of equity.
Insurance tech: Companies creating new underwriting, claims, distribution and brokerage platforms, enhanced customer experience offerings, and
software-as-a-service to help insurers deal with legacy IT issues.
SUMMARY OF FINDINGS
VC-BACKED FINTECH COMPANIES RAISE $2.7B ACROSS 226 DEALS IN EUROPE FINTECH INVESTMENT SPIKES IN Q117: Europe saw a
Q117: Investment dollars to VC-backed fintech companies in burst of fintech investment in the first three months of 2017,
2017 is on pace to drop 18% from 2016, at the current run rate. putting total funding dollars on pace to surpass $2.6B at the
Global fintech deal activity could surpass 2016s all-time high if current run rate. Europe fintech deal activity is on pace to top
the rest of the year sustains Q117s deal pace. 2016s total by 57% if the current pace persists.
22 FINTECH UNICORNS GLOBALLY VALUED AT $77B: Q117 saw the VC FUNDING TO EARLY-STAGE EUROPEAN FINTECHS GROWS 261%:
second most highly valued fintech unicorn in the US, SoFi, raise European VC-backed early-stage fintech companies raised
$500M at a $4.5B valuation. China Rapid Finance, valued at $1B, filed $195M across 50 deals in Q1 2017, a 72% quarterly deal jump.
for IPO on the last day of Q117. The surge in early-stage fintech funding was led by $10M+
rounds to companies including solarisBank, ottonova,
FINTECH MEGA-ROUNDS RISE SLIGHTLY IN Q117: There were seven ShapeShift, and Advanon.
$50M+ financings to VC-backed fintech companies in Q117,
compared to 14 in the same quarter last year. US FINTECH IS ON PACE TO SEE DEALS, DOLLARS DROP IN 2017: If
the pace of investment in Q117 continues, funding to VC-backed
EUROPE ENDS MEGA-ROUND DROUGHT: In 2016, no European VC- fintech funding would drop 20% from 2016s dollar total. US
backed fintech company raised a financing round of $50M+. In the fintech deal activity is on pace to fall below 2013 levels at the
first quarter of 2017, two companies, Atom and Funding Circle, raised current run rate.
$100M+ each.
Note: Report focuses on all equity rounds to VC-backed fintech companies. This
report does not cover companies funded solely by angels, private equity firms or
any debt, secondary or line of credit transactions. All data is sourced from CB
Insights. Page 62 details the rules and definitions we use.
In Q1 2017, global VC-backed fintech startups
raised
$2.7 BILLION
across
226 DEALS
ANNUAL GLOBAL FINANCING TREND TO VC-BACKED VC-BACKED FINTECH
FINTECH COMPANIES FUNDING ON PACE TO
2012 - 2017 YTD (Q1'17) DROP FROM 2016 TOTAL
$16.0 1000
878
889
$14.0
900
Investment dollars to VC-
800 backed fintech
740
$12.0
companies in 2017 is on
700
pace to drop 18% from
$10.0
573 600
2016, at the current run
$8.0 450 500 rate.
$6.0
400
Global fintech deal
300 activity could surpass
226
$4.0
2016s high if the rest of
200
the year sustains Q117s
$2.0
100
deal pace.
$2.5 $3.1 $7.9 $14.7 $13.1 $2.7
$- 0
2012 2013 2014 2015 2016 2017
Amount ($B) Deals
QUARTERLY GLOBAL FINANCING TRENDS TO VC-BACKED GLOBAL VC-BACKED
FINTECH COMPANIES FINTECH DOLLARS RISE
Q1'12 - Q1'17
$6,000 300 IN Q117 AFTER 3-
QUARTER DECLINE
256
$5,000 236 233 250
228 226 Funding to global VC-
209 204 210
198 202 backed fintech
190
$4,000
178
200
companies rose 33% on
163 161 163 a quarterly basis, but was
$3,000
130 130
150 down 47% compared to
106
112
119 the same quarter last
102
$2,000 100 year.
Global fintech deal

$1,000 50
activity rose 12% from
$1,015
$5,240
$1,631
$1,734
$1,379
$3,113
$2,444
$5,062
$1,974
$4,898
$3,707
$2,506
$2,037
$2,705
Q416 to top 225 deals
$669
$728
$898
$593
$610
$582
$560
$- 0 over the three-month

period.
Amount ($M) Deals
QUARTERLY GLOBAL FINTECH DEAL SHARE BY STAGE FINTECH SERIES A DEAL
Q1'16 - Q1'17 SHARE MATCHES FIVE-
QUARTER LOW
11%
2% 15% 16%
4% 1% 18% 18%
6% 3%
1%
4% 3%
Global fintech Series A
6%
8%
3% deal share fell from 25%
11% 6% 7%
14%
in Q416 to 20% in Q117.
13% 14% 13%
15% Seed deal share
20%
rebounded from Q416s
low to hit 34% in Q117.
24% 23% 20%
25%
45% 33% 34% 31% 34%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Seed / Angel Series A Series B Series C Series D Series E+ Other
QUARTERLY GLOBAL EARLY-STAGE FINANCING TRENDS EARLY-STAGE FINTECH
TO VC-BACKED FINTECH COMPANIES DEALS AND DOLLARS
Seed - Series A, Q1'12 - Q1'17
$700 180 GROW IN Q117
164
160
$600
139 136
133 140
After global early-stage
131 128
$500
118 120 121 122 fintech funding fell to a 7-
113 113
108 111 105
120
quarter low in Q416,
$400
100
seed and Series A
86
82 79 investment rebounded
$300
65
69 68
80
slightly in Q117 to hit
60 $431M.
$200
40 Early-stage fintech deals

$100
20
rose 5% on a quarterly
$529
$156
$184
$163
$146
$204
$177
$280
$340
$579
$358
$518
$380
$542
$434
$438
$544
$606
$487
$409
$431
basis.
$- 0
Amount ($M) Deals
GLOBAL EARLY-STAGE FINTECH DEAL SIZE MEDIAN EARLY-STAGE
Q1'16 - Q1'17 FINTECH DEAL SIZE FALLS
IN Q117
Median early-stage (Seed

Series A) deal size
$2.7
$2.6 among VC-backed
$2.5 $2.5
fintech companies in
$2.2
Q117 fell after rising to
$2.7M in Q416. Median
early-stage deal size in
Q117 did however top
the $2.2M median in the
same quarter last year.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Median Early-Stage Deal Size ($M)
GLOBAL LATE-STAGE FINTECH DEAL SIZE GLOBAL MEDIAN LATE-
Q1'16 - Q1'17
STAGE DEAL SIZE SEES
LITTLE MOVEMENT IN
Q117
$30.0
The median late-stage
fintech deal size in Q117
$23.0 stood at $20.5M, just
$20.0 $20.3 $20.5 slightly higher than
Q416s median.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Median Late-Stage Deal Size ($M)

FINTECH DEAL COUNT BY CONTINENT EUROPE SEES FINTECH
Q1'16 - Q1'17
DEAL SPIKE IN Q117
146
Europe saw deal activity

115
to VC-backed fintech
107
111 companies rise a notable
98 74% on a quarterly basis
in Q117.
73
North America saw deals
53 53
to VC-backed fintech
42 42 42
startups drop 12%
52
49 compared to Q416 and
39 38
33% from the same
quarter last year.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

North America Asia Europe
FINTECH INVESTMENT ($B) BY CONTINENT EUROPE FINTECH
Q1'16 - Q1'17 FUNDING RISES TO 5-
$2.7 QUARTER HIGH
Amid upcoming EU
legislation that could
open the door for fintech
$1.8
$1.7
companies to challenge
incumbent banks, Europe
$1.6
$1.3 $1.3
saw funding to VC-
$1.2 backed fintech
$1.0 companies jump 222%
$0.8
on a quarterly basis.
$0.7
$0.4 $0.4 After a dip in Q416, Asia

$0.3
$0.2 $0.2 VC-backed fintech
funding rose 89% in
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q117.
North America Asia Europe

MOST ACTIVE VC INVESTORS IN GLOBAL FINTECH 500 STARTUPS AND NEA
COMPANIES ARE MOST ACTIVE
Q116 Q117 GLOBAL FINTECH
INVESTORS
Rank Investor Rank Investor
1 500 Startups 12 Bessemer Venture Partners 500 Startups, New
2 New Enterprise Associates 12 GV Enterprise Associates,
3 Index Ventures 12 Nyca Partners and Index Ventures were
4 Ribbit Capital 12 Andreessen Horowitz the most active VCs in
5 Union Square Ventures 12 Thrive Capital global fintech companies
5 Khosla Ventures 17 Santander InnoVentures over the last five
7 QED Investors 17 Valar Ventures quarters. Ribbit Capital,
7 Bain Capital Ventures 17 Anthemis Group the financial services-
7 General Catalyst 17 Founders Fund focused venture firm,
7 SBI Investment 17 Spark Capital ranked fourth over the
11 SpeedInvest period.
CVC PARTICIPATION IN GLOBAL DEALS TO VC-BACKED CORPORATES
FINTECH COMPANIES PARTICIPATE IN 1 OF
Q1'16 - Q1'17
EVERY 3 FINTECH DEALS
IN Q117
As more financial
services incumbents
continue to launch
venture arms, strategic
participation in 1/3rd of
all global VC-backed
fintech deals in Q117 vs.
67%
70% 71% 70% 22% in the same quarter
78% last year.
22% 30% 29% 30% 33%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Corp / CVC Participation Other Investors
$50M+ FINANCINGS TO VC-BACKED FINTECH EUROPE ENDS FINTECH
COMPANIES MEGA-ROUND DROUGHT
North America, Asia, Europe, South America, Q1'16 - Q1'17
9
After seeing no $50M+
financings to VC-backed
7 fintech companies in
2016, Europe saw two
fintech companies notch
5 $100M+ deals in Q117.
4 4 4
3 3
2 2 2
1 1
0 0 0 0 0 0 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
North America Asia Europe South America
GLOBAL VENTURE-BACKED FINTECH UNICORNS BY 22 FINTECH UNICORNS
VALUATION GLOBALLY VALUED AT
$ Billion
$77B IN AGGREGATE
$18.5 Asia
North America
Europe In Q117, SoFi raised
$500M at a $4.5B
valuation, while China
Rapid Finance filed for a
$9.2 $100M IPO in the US.
$8.0
$5.9 China is also home to the

$4.5 financial affiliates of
$3.6 $3.5
$2.7 $2.4 $2.3 $2.3 Alibaba and JD.com, last
$2.0 $1.9 $1.8 $1.6
$1.1 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 valued at $60B and
$7.3B, respectively.
QUARTERLY FINANCING TREND TO VC-BACKED
DEALS TO VC-BACKED
INSURANCE TECH COMPANIES INSURANCE TECH
Q1'16 - Q1'17
$900 38 40 STARTUPS DROP IN Q117
$800
33 35
Funding to venture
$700
30 capital-backed insurance
$600
tech companies fell 25%
24
22
23 25 on a quarterly basis in
$500
Q117, while deal activity
20
$400
dropped 30%.
15
$300
10
$200
5
$100
$770 $387 $220 $257 $194

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
QUARTERLY FINANCING TREND TO VC-BACKED FUNDING TO VC-BACKED
BLOCKCHAIN AND
$180 BLOCKCHAIN/BITCOIN COMPANIES 30
Q1'16 - Q1'17
BITCOIN COMPANIES
$160 REBOUNDS
24 25
23
$140
Investment to VC-backed
$120 19 20 bitcoin and blockchain
18
startups rebounded in
16
$100
Q117 to $113M after
15
dropping to $77M in
$80
Q416. The largest deals
$60 10 over the three-month
period included BitFurys
$40 $30M Series C and
5
Veems $24M Series B.
$20
$153 $121 $131 $77 $113

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
QUARTERLY FINANCING TREND TO VC-BACKED PAYMENTS TECH
PAYMENTS TECH COMPANIES FUNDING FALLS TO 5-
Q1'16 - Q1'17
$600 60
QUARTER LOW
$500
50 50
50
Investment dollars to VC-
42 44
backed payments tech
companies (online and
38
$400 40
mobile payments, point
of sales systems) fell
$300 30 39% on a quarterly basis,
while deals rose for the
$200 20
second consecutive
quarter.
$100 10
$311 $445 $442 $495 $304

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
MAJOR BANK INVESTMENTS TO VC-BACKED FINTECH MAJOR BANKS CONTINUE
COMPANIES TO INVEST IN FINTECH
Q1'16 - Q1'17 STARTUPS
Santander, Goldman
Sachs, and Citi or their
venture arms have
participated in the
highest number of deals
to venture-backed fintech
companies over the last
five quarters.
9 8 8 6 5 3 3 3 2 2 2 1 1 1 1 1
PRIVATE TECH INVESTMENTS BY (RE)INSURERS INSURERS CONTINUE TO
Q1'12 - Q1'17 PILE INTO STRATEGIC
30 TECH INVESTING
25 Q117 marked the sixth

quarter in a row with
20
more than 20 private
tech investments by
(re)insurers or their
15
strategic venture units.
10
OUTSIDE OF CORE
NOTABLE FINTECH DEALS OUTSIDE CORE MARKETS
Q116 Q117 MARKETS, LARGEST
DEALS CENTER IN BRAZIL
Company Round Country Select investors
$80M Founders Fund, Kaszek Ventures, Sequoia
AND AUSTRALIA
Brazil
(Series D // Q416) Capital, Tiger Global
$52M
Brazil
Founders Fund, Kaszek Ventures, Sequoia Of the 10 largest deals
(Series C // Q116) Capital, Tiger Global
outside of Asia, Europe,
$30M*
(Venture // Q116)
Australia Undisclosed investors
and North America over
$19.4M
Brazil
IFC, Kaszek Ventures, Naspers, QED Investors, the last five quarters, 8
(Series B // Q117) Quona Capital, Redpoint e.ventures
$19.3M
took place in Australia or
Australia AirTree Ventures
(Series C // Q117) Brazil.
$19M Australian Capital Equity, Consolidated Press
Australia
(Series C // Q216) Holdings, News Corp Australia
$17.3M
Brazil IFC, Kaszek Ventures, QED Investors, Ribbit Capital
(Series C // Q216)
$15M IFC, Omidyar Network, Accion, 4Di Capital, Lundin
South Africa
(Series B // Q316) Foundation
$10M Cultivation Capital, Reinventure, Rampersand,
Australia
(Series A // Q216) Carsales
$9M Jasmine Social Investments, Movac, Square Peg
New Zealand
(Series D // Q416) Capital
*Includes both debt and equity
In Q1 2017, US VC-backed fintech startups raised
$1.1 BILLION
across
90 DEALS
US ANNUAL GLOBAL FINANCING TREND TO VC-BACKED
FINTECH COMPANIES US FINTECH IS ON PACE
2012 - 2017 YTD (Q1'17) TO SEE DEALS, DOLLARS
$9.0 467 500
DROP IN Q117
439
$8.0 429 450 If the pace of investment
400
in Q117 continues,
$7.0 371
funding to VC-backed
350
$6.0 fintech companies would
286 300 drop 20% from 2016s
$5.0
250
dollar total.
$4.0
200
US fintech deal activity is
$3.0
150 on pace to fall below
$2.0 90 2013 levels at the current
100
run rate.
$1.0 50
$1.7 $2.3 $5.3 $7.8 $5.5 $1.1

$- 0
2012 2013 2014 2015 2016 2017
Amount ($B) Deals
US QUARTERLY FINANCING TRENDS TO VC-BACKED US FINTECH DEALS
FINTECH COMPANIES REMAIN BELOW 100 FOR 3
Q1'16 - Q1'17
$2.0 160
STRAIGHT QUARTERS
$1.8
137 140 US fintech deal activity
$1.6 dropped 9% on a
120
quarterly basis, while
$1.4 106
97 99 funding fell 8%.
100
$1.2 90
$1.0 80
$0.8
60
$0.6
40
$0.4
20
$0.2
$1.8 $1.6 $0.9 $1.2 $1.1

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($B) Deals
US QUARTERLY GLOBAL FINTECH DEAL SHARE BY STAGE US FINTECH SERIES A
Q1'16 - Q1'17
DEAL SHARE FALLS TO 5-
QUARTER LOW
12%
2%
4% 19%
21%
5%
3%
1%
4% 25%
Series A deal share fell
27%
6% 1%
6% 4%
below 20% after taking
9%
13% 3% 4% over 1/4th of all deals to
12% 6%
10% VC-backed fintech
9% 15% companies in Q416.
22% 16%
21% Seed deal share in US

fintech did not see a
23%
26% 19% notable drop or rise from
Q416.
42% 26% 36% 23% 24%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
US GLOBAL EARLY-STAGE FINANCING TREND TO VC-
US EARLY-STAGE FINTECH
BACKED FINTECH COMPANIES DEALS, DOLLARS
$700 180 REBOUND IN Q117
163
160
$600
US seed and Series A
133 140
funding to VC-backed
$500 122
113 112 120
fintech companies rose
6% on a quarterly basis in
$400
100
Q117.
80
$300
After dropping for three
60 consecutive quarters,
$200
early-stage deals in
Q117 increased 9% the
40
$100
20 prior three months.
$544 $606 $487 $407 $431
$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
US EARLY-STAGE FINTECH DEAL SIZE US EARLY-STAGE FINTECH
Q1'16 - Q1'17 DEAL SIZE FALLS FROM
Q416 HIGH
$4.0
Median early-stage
$3.5 fintech deal size fell back
$3.2 20% on a quarterly basis
in Q117 after rising to
$2.5 $4M in Q416.
$2.2
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

US LATE-STAGE FINTECH DEAL SIZE LATE-STAGE US FINTECH
Q1'16 - Q1'17 DEAL SIZE FALLS
SLIGHTLY IN Q416
Median late-stage fintech

$30.0
deal size stood at
$25.0
$26.5
$25.5 $25.5M in Q117,
compared to $26.5M in
$21.9
Q416.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Median Late-Stage Deal Size ($M)
TOP 10 US FINTECH DEALS SOFIS MEGA-ROUND
Q117 TOPS LARGEST US
Company Round State Round Investors
FINTECH DEALS OF Q117
$500M
California Silver Lake, GPI Capital, Softbank Group
(Series F)
Altimeter Capital, Scale Venture Partners,
$50M
New York Sequoia Capital, Four Rivers Group, Matrix
(Series D)
Partners, Greenspring Associates The top 10 US VC-
$32.5M Rakuten, Third Point, Khosla Ventures, First
(Series D)
California
Round Capital backed fintech deals in
$30M
California
IVP, Ribbit Capital, Female Founders Fund, Data Q117 raised $750M in
(Series B) Collective, Collaborative Fund, Lowercase Capital
aggregate funding, two-
$27.6M
(Series D)
New York Thiel Capital thirds of which came
$24M
California
NAB Ventures, SBI Investment, GV, Kleiner from SoFis $500M
(Series B) Perkins, Silicon Valley Bank
financing led by Silver
$23.5M BlueCross Blue Shield Venture Partners, Andrew
(Series E)
New York
Prozes Lake.
$22M Matrix Partners, Ribbit Capital, March Capital
California
(Series A) Partners, Felicis Ventures
$20.5M
California True Ventures
(Series G)
$20M Pelion Venture Partners, NEA, EPIC Ventures, Deep
Utah
(Series B) Fork Capital
CVC PARTICIPATION IN US DEALS TO VC-BACKED CORPORATE
FINTECH COMPANIES PARTICIPATION IN US
Q1'16 - Q1'17 FINTECH STAYS RANGE-
BOUND
Corporates participated
in close to 1/4th of all
deals to US VC-backed
Q117.
70%
75% 74% 76%
79%
21% 30% 25% 26% 24%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

MOST ACTIVE VC INVESTORS IN US FINTECH COMPANIES NEA, KHOSLA ARE MOST
Q116 Q117 ACTIVE US FINTECH
INVESTORS
1 New Enterprise Associates 9 Founders Fund
2 Khosla Ventures 9 Thrive Capital
3 General Catalyst Partners 9 SV Angel
New Enterprise
3 Bain Capital Ventures 9 Citi Ventures
Associates was the most
3 Union Square Ventures 9 Bessemer Venture Partners
active VC investor in US-
6 Nyca Partners 9 Comcast Ventures
based fintech companies
7 Andreessen Horowitz 9 Spark Capital
over the last five quarters
7 GV
followed by Khosla
Ventures. General
Catalyst, Union Square
Ventures, and Bain
Capital Ventures tied for
third.
CALIFORNIA QUARTERLY FINANCING TREND TO VC- CALIFORNIA FINTECH
BACKED FINTECH COMPANIES FUNDING JUMPS, AS
Q1'16 - Q1'17 DEALS DROP
$800 60
54
51
$700
50
In Q117, funding to VC-
backed fintech
$600
42
41 companies in California
39
$500
40
grew 39% on a quarterly
basis behind SoFis
$400 30 $500M financing led by
Silver Lake.
$300
20
But fintech deals in the
$200
state fell for the second
10 consecutive quarter, and
$100
declined 28% from the
$-
$596 $752 $515 $509 $710
0
same quarter last year.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
NEW YORK QUARTERLY FINANCING TREND TO VC- NEW YORK FINTECH
BACKED FINTECH COMPANIES DEALS RISE FOR SECOND
$1,000
Q1'16 - Q1'17 40 STRAIGHT QUARTER
36
$900
35
Fintech funding to VC-
$800
30
30
backed New York
$700 companies fell 35% on a
24 25 quarterly basis.
$600
$500 19 20 New York fintech deal

15
activity rose 26% from
$400
15 Q416, but registered 33%
$300 below the same quarter
$200
10
last year, which included
large financings to Oscar
5
$100
and Betterment.
$868 $238 $153 $390 $253
$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
In Q1 2017, European VC-backed fintech startups
raised
$667 MILLION
across
73 DEALS
EUROPE ANNUAL GLOBAL FINANCING TREND TO VC- EUROPE FINTECH
BACKED FINTECH COMPANIES INVESTMENT IS ON TRACK
2012 - 2017 YTD (Q1'17)
FOR A RECORD YEAR
$1.8 200
186
$1.6 170 180 Europe saw a burst of

160
fintech investment in the
$1.4
first three months of 2017,
140
$1.2
125
putting total funding
120 dollars on pace to surpass
$1.0
100
$2.6B at the current run
$0.8 79
83 rate.
73 80
$0.6
60 Europe fintech deal
$0.4
activity is on pace to top
40
2016s total by 57% if the
$0.2 20 current pace persists.
$0.3 $0.3 $1.2 $1.7 $1.1 $0.7
$- 0
2012 2013 2014 2015 2016 2017
Amount ($B) Deals
EUROPE QUARTERLY FINANCING TRENDS TO VC-BACKED EUROPEAN FINTECH
FINTECH COMPANIES DEALS, FUNDING LEAP
Q1'16 - Q1'17 AHEAD IN Q117
$0.8 80
73
$0.7 70 European VC-backed
fintech companies raised
$0.6 60
$667M across 73 deals
52
53 in Q117.
$0.5 50
42
$0.4
39
40
Compared to the same
quarter last year, Europe
$0.3 30 fintech funding in Q117
rose 121%, while deals
$0.2 20
jumped 38%.
$0.1 10
$0.3 $0.4 $0.2 $0.2 $0.7

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($B) Deals
EUROPE QUARTERLY GLOBAL FINTECH DEAL SHARE BY
EARLY-STAGE TAKES
STAGE OVER 2/3RDS OF EUROPE
Q1'16 - Q1'17
FINTECH DEALS FOR
8% 7% THIRD STRAIGHT
11% 2% 12%
13% 5%
7%
QUARTER
4% 2% 5% 4%
1%
9% 10%
10%
8% In Q117, seed deal share
14% 5%
11%
stayed at 45%+ for the
13%
third consecutive quarter.
23%
17%
24% 23% After rising to 14% in
25% Q416, Series B deal
share fell to just 5% of all
fintech deals in Europe in
Q117.
47% 37% 49% 45% 45%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
EUROPE GLOBAL EARLY-STAGE FINANCING TREND TO VC FUNDING TO EARLY-
VC-BACKED FINTECH COMPANIES STAGE EUROPEAN
$250 60 FINTECHS GROWS 261%
50
50 European VC-backed
early-stage fintech
$200
companies raised $195M

40
across 50 deals in Q1
$150
33 32 2017, a 72% quarterly
29
28 30 deal jump.
$100
20
The surge in early-stage
fintech funding was led
$50
by $10M+ rounds to
10
companies including
solarisBank, ottonova,
$85 $108 $119 $54 $195
$- 0 Advanon, and
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 ShapeShfit.
Amount ($M) Deals
EUROPEAN EARLY-STAGE FINTECH DEAL SIZE MEDIAN EUROPEAN
Q1'16 - Q1'17 EARLY-STAGE DEAL SIZE
RISES AFTER TWO
$3.4 QUARTER DROP
$3.0
Early-stage median
fintech deal size in
$2.5
$2.4 Europe rose to $2.5M
$2.2 after falling for two
consecutive quarters
from $3.4M in Q216.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

EUROPEAN OVERALL FINTECH DEAL SIZE OVERALL MEDIAN DEAL
Q1'16 - Q1'17
SIZE RISES TO $4.6M IN
Q117
$5.1
$4.6
$4.4 Overall European median
fintech deal size rose
53% on a quarterly basis
as Europe saw 10 $20M+
$3.0 $3.0
deals over the three-
month period.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Median Overall Deal Size ($M)
TOP 10 EUROPEAN FINTECH DEALS EUROPE NOTCHES FIRST
Q117 $100M+ VC-BACKED
Company Round Country Round Investors FINTECH DEALS
$102M BBVA, Toscafund Asset Management,
United Kingdom
(Series C) Woodford Investment Management
$100M
(Series F)
United Kingdom
Accel, Baillie Gifford & Co., DST, Index Ventures,
Ribbit Capital, Temasek, Union Square Ventures
The top 10 deals in Q117
$32M
to European venture-
Germany Thrive Capital, Ribbit Capital, Index Ventures
(Series C) backed fintech startups
$30M
(Series C)
Netherlands China Credit Limited Holdings raised more than $405M
$28M Arvato Financial Solutions, FinLeap, SBI in total funding.
Germany
(Series A) Investment, Yabeo Capital
$25M Rakuten Ventures, GV, Anthemis Group, Notion
United Kingdom
(Series D) Capital, Sapphire Ventures
$24.5M Thrive Capital, Orange Digital Ventures, Passion
United Kingdom
(Series B) Capital
$22.9M
Poland Capitec Bank
(Series B)
$21.2M Rakuten Ventures, Allianz Ventures, Rheingau
Germany
(Series C-II) Ventures, Route 66 Ventures
$20M
United Kingdom Target Global, Viola Private Equity,
(Private Equity)
CVC PARTICIPATION IN EUROPE DEALS TO VC-BACKED CVC DEAL ACTIVITY IN
FINTECH COMPANIES EUROPEAN FINTECH
Q1'16 - Q1'17
CLIMBS TO 5-QUARTER
HIGH
In Q116, investments to
VC-backed fintech
companies in Europe
involving strategic
investors stood at 17%.
64% 63% The same quarter this

year, strategics have
74%
77% increased their
83%
involvement to 37% of all
Europe fintech deals.
17% 23% 26% 36% 37%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
MOST ACTIVE VC INVESTORS IN EUROPEAN FINTECH INDEX VENTURES,
COMPANIES SPEEDINVEST ARE MOST
Q116 Q117 ACTIVE VCS IN EUROPEAN
FINTECH COMPANIES
1 Index Ventures 7 Ribbit Capital Over the last five
1 SpeedInvest 7 Octopus Ventures quarters, Index Ventures
3 Holtzbrinck Ventures 7 NFT Ventures has made new or follow-
3 Global Founders Capital 7 Earlybird Venture Capital on investments to
3 Dieter von Holtzbrinck Ventures 7 German Startups Group European fintech
3 Seedcamp 7 SEED Capital companies including
Bonify, Raisin, and
Silverfin.
UK QUARTERLY FINANCING TREND TO VC-BACKED
UK FINTECH FUNDING
FINTECH COMPANIES JUMPS ON THE BACK OF
Q1'16 - Q1'17
$350 25 $100M+ DEALS
22
$300
UK VC-backed fintech
20
companies raised $328M
17
$250
in Q117, with $200M+
15
14 15
coming from a pair of
$200
investments to Atom
12
Bank and Funding Circle.
$150
10
Fintech deal activity in

$100 the UK rose 57% on a
5 quarterly basis.
$50
$121 $124 $78 $121 $328

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
GERMANY QUARTERLY FINANCING TREND TO VC- GERMAN FINTECH DEALS
BACKED FINTECH COMPANIES REBOUND TO 5-QUARTER
Q1'16 - Q1'17 HIGH
$200 18
17
$180 16
15
15 German VC-backed
$160
14 fintech deals rose 143%
$140 in Q117 on a quarterly
12
11 basis, while funding grew
$120
10 341% driven by
$100 investments to
$80
7 8
companies including
6 Raisin and solarisBank.
$60
4
$40
$20 2
$107 $175 $105 $34 $150

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
In Q1 2017, Asian VC-backed fintech startups
raised
$826 MILLION
across
42 DEALS
ASIA ANNUAL GLOBAL FINANCING TREND TO VC- ASIA FINTECH DEALS ON
BACKED FINTECH COMPANIES PACE TO DROP IN 2017
2012 - 2017 YTD (Q1'17)
$7.0 200
182
173 180
At the current run rate,
$6.0 Asia could see 8% fewer
160
deals in 2017 to VC-
$5.0
134 140 backed fintech
companies than in 2016.
120
$4.0
100
$3.0
73 80
58
60
$2.0
42
40
$1.0
20
$0.3 $0.3 $1.1 $4.8 $5.9 $0.8

$- 0
2012 2013 2014 2015 2016 2017
Amount ($B) Deals
ASIA QUARTERLY FINANCING TRENDS TO VC-BACKED
ASIAN FINTECH FUNDING
FINTECH COMPANIES RISES AFTER 3-QUARTER
Q1'16 - Q1'17
$3.0 60
DROP
53
$2.5 49 50 VC-backed fintech

42 42 companies in Asia saw
$2.0 38 40
funding double in Q117
to $826M.
$1.5 30
Deals rose slightly on a
quarterly basis, but stood
$1.0 20 14% lower than the same
quarter last year.
$0.5 10
$2.7 $1.6 $1.3 $0.4 $0.8

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($B) Deals
ASIA QUARTERLY GLOBAL FINTECH DEAL SHARE BY
FINTECH SERIES B DEAL
STAGE
Q1'16 - Q1'17
SHARE MATCHES 5-
4% QUARTER HIGH IN Q117
2% 9% 11%
2% 17% 14%
2%
9% 8% 2% Series A deal share to
2%
7% 10% VC-backed fintech
16%
24%
companies in Asia fell to
23%
a five-quarter low, while
Series B deal share rose
16%
20% from 16% in Q416 to
31% 31%
31% in the first three
23%
12% months of 2017.
21%
26%
45% 36% 17% 29% 31%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
ASIA GLOBAL EARLY-STAGE FINANCING TREND TO VC- ASIAN EARLY-STAGE
BACKED FINTECH COMPANIES FINANCING STAYS LEVEL
$140 35
IN Q117
32
31
$120 30 Asian VC-backed early-
stage fintech companies
$100 25 saw $62M across 18
deals in the first three
$80
18
19
18
20 months of 2017, with
little deviation from
$60 15 Q416s total.
$40 10
$20 5
$51 $118 $111 $66 $62

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
ASIA EARLY-STAGE FINTECH DEAL SIZE ASIAN FINTECH EARLY-
Q1'16 - Q1'17 STAGE DEAL SIZE
MATCHES 5-QUARTER
$3.5
$3.3 LOW
Q117 saw early-stage

median deal size drop
57% on a quarterly basis,
after rising for three
$2.0
consecutive quarters.
$1.5 $1.5
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

TOP 10 ASIAN FINTECH DEALS ASIAS TOP Q117 DEALS
Q117 CENTER IN CHINA
Company Round Country Select investors
$72M 360jinrong, Addor Capital, CreditEase, Matrix
China
(Series B) Partners China, Youjin Capital
$68M China International Capital Corp., Golden Brick
7 of the top 10 Q117
China
(Series C) Capital, GX Capital, Sinovation Ventures deals to venture-backed
$48M
(Series C)
South Korea
Goodwater Capital, Altos Ventures, Bessemer
Venture Partners, PayPal, Partech Ventures
$33.4M Asia went to China-based
China Liaison Technologies
(Series C) companies. South Korea
$30M
(Series A)
Indonesia BEENEXT, Mandiri Capital payments startup Viva
$29M China Renaissance Capital Investment, PAG, Republica and
China
Sequoia Capital China
(Series B)
Indonesian P2P lending
DCM Ventures, Draper Nexus, JAFCO, Mitsui
$16M
(Series A)
Japan Sumitomo Insurance Venture Capital, Monex platform Amartha also
Ventures, Rakuten Ventures
$14.6M
raised $30M+ financings
China CITIC Capital Private Equity, Yonghua Capital
(Series B) in Q117.
$14.6M China Growth Capital, ChinaEquity Group, Frees
China
(Series B-II) Fund, Shunwei Capital Partners
$14.5M Bertelsmann Asia Investments, Future Capital
China
(Series B) Discovery Fund, Shunwei Capital, Sinolink
CVC PARTICIPATION IN ASIA DEALS TO VC-BACKED
CORPORATES
FINTECH COMPANIES
Q1'16 - Q1'17 PARTICIPATE IN HALF OF
ASIAN FINTECH DEALS
Corporate participation in
Asian VC-backed fintech
deals rebounded to 50%
after falling to 42% in
Q416.
50% 50%
58%
Strategic involvement in
60% Asias Q117 fintech
69% financing far outpaced
the same quarter last
year when corporates
participated in 31% of all
deals.
31% 40% 50% 42% 50%
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

MOST ACTIVE VC INVESTORS IN ASIAN FINTECH 500 STARTUPS IS MOST
COMPANIES ACTIVE VC IN ASIAN
2016 FINTECH STARTUPS
Over the past five

quarters, 500 Startups
1 500 Startups 5 Kalaari Capital
made investments to
2 SBI Investment 5 BEENEXT
fintech startups in Asia
2 East Ventures 5 IDG Capital Partners
including BeeWise, First
4 Sequoia Capital India 5 Source Code Capital
Circle, and Credit Engine.
5 Matrix Partners China
CHINA QUARTERLY FINANCING TREND TO VC-BACKED CHINA SEES $661M TO
FINTECH COMPANIES VC-BACKED FINTECH
Q1'16 - Q1'17
$3.0
17
18 COMPANIES IN Q117
16
$2.5
15 Deal activity to VC-
14 14
14 backed fintech
companies doubled on a
quarterly basis in Q117,
$2.0 12
10 while funding rose 149%.

$1.5
8
7
$1.0 6
$0.5
$2.4 $1.3 $1.1 $0.3 $0.7

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($B) Deals
INDIA QUARTERLY FINANCING TREND TO VC-BACKED INDIA FINTECH FUNDING
FINTECH COMPANIES DROPS TO FIVE-QUARTER
Q1'16 - Q1'17 LOW
$180 18
16 16
$160 16
Q117 saw both
$140 14 investment and deal
12 activity to VC-backed
$120 12
fintech companies drop
$100
9
10 to 5-quarter lows.
$80
7
8 In April, SoftBank was
$60 6
reportedly considering a
$1B+ investment in
$40 4 Paytm owner One97
Communications.
$20 2
$73 $157 $127 $35 $15

$- 0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Amount ($M) Deals
METHODOLOGY
CB Insights encourages you to review the methodology and definitions employed to better understand the numbers presented in this report. If you have
any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights directly. Additionally, if you feel your
firm has been under-represented, please send an email to info@cbinsights.com and we can work together to ensure your firms investment data is up-to-
date.
What is included: What is excluded:
Equity financings into emerging fintech companies. Fundings must be put into No contingent funding. If a company receives a commitment for $20M subject to
VC-backed companies, which are defined as companies who have received hitting certain milestones but first gets $8M, only the $8M is included in our data.
funding at any point from either: venture capital firms, corporate venture groups
No business development / R&D arrangements, whether transferable into equity now,
or super angel investors.
later or never. If a company signs a $300M R&D partnership with a larger corporation,
Fundings of only private companies. Funding rounds raised by public companies this is not equity financing nor is it from venture capital firms. As a result, it is not
of any kind on any exchange (including Pink Sheets) are excluded from our included.
numbers even if they received investment by a venture firm(s). Note: For the
No buyouts, consolidations and recapitalizations. All three of these transaction types
purposes of this analysis, JD.coms finance arm JD Finance and its $1B financing
are commonly employed by private equity firms and are tracked by CB Insights.
were included in the data per its investment from Sequoia Capital China, in Q1
However, they are excluded for the purposes of this report.
2016.
No private placements. These investments, also known as PIPEs (Private Investment
Only includes the investment made in the quarter for tranched investments. If a
in Public Equities), are excluded even if made by a venture capital firm(s).
company does a second closing of its Series B round for $5M and previously had
closed $2M in a prior quarter, only the $5M is reflected in our results. No debt / loans of any kind (except convertible notes). Venture debt or any kind of
debt / loan issued to emerging, startup companies, even if included as an additional
Round numbers reflect what has closed not what is intended. If a company
part of an equity financing is not included. If a company receives $3M with $2M from
indicates the closing of $5M out of a desired raise of $15M, our numbers reflect
venture investors and $1M in debt, only the $2M is included in these statistics.
only the amount which has closed.
No government funding. Grants, loan or equity financings by the federal government,
Only verifiable fundings are included. Fundings are verified via
state agencies or public-private partnerships to emerging, startup companies are not
(1) various federal and state regulatory filings; (2) direct confirmation with firm or
included.
investor; or (3) press release.
Previous quarterly VC reports issued by CBI have exclusively included VC-backed
rounds. In this report, any rounds raised by VC-backed companies are included,
with the exceptions listed.
CBINSIGHTS.COM
@ cbinsights
+1(212)292-3148

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THE GLOBAL FINTECH REPORT: Q117

A comprehensive, data-driven look at global financial technology

Think of the fundamental value chain of venture

See what other customers have to say at http://www.cbinsights.com/customer-love www.cbinsights.com 3

CB INSIGHTS NEWS MENTIONS PER YEAR

2010 2011 2012 2013 2014 2015 2016

Join CB Insights for an exclusive gathering of the world's

Amount ($B) Deals

Global fintech deal

$- 0 over the three-month

45% 33% 34% 31% 34%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Seed / Angel Series A Series B Series C Series D Series E+ Other

40 Early-stage fintech deals

Amount ($M) Deals

Median early-stage (Seed

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Median Late-Stage Deal Size ($M)

Europe saw deal activity

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

$0.4 $0.4 After a dip in Q416, Asia

North America Asia Europe

22% 30% 29% 30% 33%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

North America Asia Europe South America

$5.9 China is also home to the

$770 $387 $220 $257 $194

Amount ($M) Deals

$153 $121 $131 $77 $113

Amount ($M) Deals

$311 $445 $442 $495 $304

Amount ($M) Deals

25 Q117 marked the sixth

*Includes both debt and equity

$1.7 $2.3 $5.3 $7.8 $5.5 $1.1

Amount ($B) Deals

$1.8 $1.6 $0.9 $1.2 $1.1

Amount ($B) Deals

21% Seed deal share in US

42% 26% 36% 23% 24%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Seed / Angel Series A Series B Series C Series D Series E+ Other

Amount ($M) Deals

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Median Early-Stage Deal Size ($M)

Median late-stage fintech

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

21% 30% 25% 26% 24%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Amount ($M) Deals

$500 19 20 New York fintech deal

Amount ($M) Deals

$1.6 170 180 Europe saw a burst of

Amount ($B) Deals

$0.3 $0.4 $0.2 $0.2 $0.7

Amount ($B) Deals

47% 37% 49% 45% 45%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Seed / Angel Series A Series B Series C Series D Series E+ Other

companies raised $195M

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17