Global VC funding of fintech falls

Source: Xinhua | 2017-02-16

GLOBAL venture capital investment in fintech startups fell 13 percent from 2015 to US$12.7 billion in 2016, according to a latest report.

The number of deals also fell 1 percent from a year ago to 836, according to venture capital data base and research firm CB Insights.

Chinese fintech companies drew US$4.6 billion worth of venture capital funding across 46 deals, the highest level in five years.

The size of funding for VC-backed fintech companies in Asia reached a record high, as the region contributed US$5.4 billion of global funding to account for 43 percent of the overall size.

The top 10 Asian fintech deals in 2016 have a combined financing size of US$4 billion, on top of Alibaba’s Ant Financial’s US$4.5 billion that it raised in a private placement in April 2016.

By market valuation, the United States has 11 out of 22 billion-dollar fintech firms, Europe counts four, while Asia boasts seven, not including JD.com and Alibaba, which were last valued at US$7.1 billion and US$60 billion respectively.

The data do not cover firms funded solely by angels, private equity or debt.