tech startup highlights from venture scanner

Technology Startup Market Highlights

Prepared for

Finance related technology startup highlights

2

This snapshot provides a sector overview, trends, and recent events for three different technology startup markets

Venture Scanner reports are built by analysts utilizing our startup database and research platform

Financial Technology(Fintech)

Companies that build or utilize technology that serves existing components of the banking system or develops alternatives to those components

Blockchain Technology(Blockchain)

Companies that build or utilize digital currencies (such as bitcoin) or the underlying distributed ledger and blockchain technology

Insurance Technology(Insurtech)

Companies that facilitate the operational procedures of insurance companies or enhance a consumer’s ability to manage their insurance needs

Fintech Highlights

3

4

Financial technology startups are creating new businesses in 16 categories

The full Venture Scanner market report and database tracks 2,267 companies

with $72B in funding

FINANCIAL TECHNOLOGY

The graphic above shows a random sampling of companies in each category, data as of July 2017

Lending Personal Finance Payments Equity Financing International Transfer

Retail Investing Institutional Investing

Security Infrastructure Business Tools Crowdfunding Research & DataDigital Banking

https://www.venturescanner.com/financial-technology

5

Innovation quadrant for financial technology

This quadrant shows a relative segmentation of the categories with respect to one another, data as of July 2017

Average Funding

ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

Ave

rage

Age

Consumer Lending

Payment Backend

Consumer Payments

Business Lending

POS Payments

Banking Infrastructure

Transaction Security International

Transfer

Equity Financing

Crowdfunding

Business Tools

Retail Investing

Personal Finance

Digital Banking

Institutional Investing

Financial Data

Fintech Blockchain Insurtech

6

Investing into the sector is occurring across a variety of categories

The Business Lending and Consumer Lending categories account for 36% of venture funding and 19% of total companies in the fintech sector

Venture Investing in Financial Technology

Companies are categorized by function, and therefore can exist in multiple categories. Data through July 2017

-

50

100

150

200

250

300

350

0

5

10

15

20

25

Com

pan

y Cou

nt

Tota

l Fu

nd

ing

($B

)

VC Funding Count


7

VC funding into fintech has grown in recent years

Overall fintech VC funding grew at a CAGR of 49% from 2011-2016, and 2017 is currently at 62% of 2016 funding

Financial Technology Funding Over Time

Data through July 2017

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tota

l Fu

nd

ing

($B

)


8

Fintech funding amounts are dominated by early stage events

Financial Technology Funding Amount By Round

59% of 2016 fintech VC funding went into Series B events

Graphs shows only the funding rounds listed therein, data through July 2017

0

2

4

6

8

10

12

14

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fun

din

g A

mou

nt (

$B)

Late Stage Series D Series C Series B Series A Seed


9

Fintech startups are a global phenomenon

Financial Technology Startup Count by Country


11250

Companies


10

A variety of top investors are making bets into fintech

Selected Investor Activity in Financial Technology

The above count represents a subset of overall investor activity, data through July 2017

0

10

20

30

40

50

60

70

80

Nu

mb

er o

f In

vest

men

ts

Number of Investments Number of Companies Backed


11

Exits within the financial technology space have grown in the past few years

Exit events within the fintech sector grew by 350% from 2011 to 2016, and 2017 is currently at 78% of the 2016 total

Financial Technology M&A and IPO Events By Year


0

10

20

30

40

50

60

70

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Nu

mb

er o

f Exi

ts

Public Acquired


12

Recent financial technology funding statistics

There have been 165 fintech funding events from April 2017 through June 2017

Recent Financial Technology Funding Round Counts

Graph shows only the funding types listed therein, data as of July 2017

0

5

10

15

20

25

30

35

Seed Series A Series B Series C Series D Series E Late Stage

Fun

din

g Ev

ent C

oun

tFintech Blockchain Insurtech

13

Recent financial technology funding events

Notable Recent Financial Technology Funding Events

Company Funding Type Amount Date

Late Stage $1,400,000,000 May 18, 2017

Late Stage $580,000,000 May 12, 2017

Series E $550,000,000 May 8, 2017

Private Equity $300,000,000 June 8, 2017

Private Equity $263,000,000 May 29, 2017

Fintech startups raised $5.8 billion from April 2017 through June 2017

Data as of July 2017


14

Recent financial technology exit events

Notable Recent Financial Technology Exit Events

Company Acquirer Amount Date

$230,000,000 April 25, 2017

$145,000,000 June 29, 2017

$100,000,000 Jun 20, 2017

$78,500,000 Jun 13, 2017

Unknown April 4, 2017

There have been 18 fintech exits from April 2017 through June 2017, including 17 acquisitions and 1 IPO



Blockchain Highlights

15

16

Blockchain technology startups are creating new businesses in 12 categories

The full Venture Scanner market report and database tracks 945 companies with

$3.5B in funding

BLOCKCHAIN TECHNOLOGY

The graphic above shows a random sampling of companies in each category, data cumulative as of August 2017

Exchanges Mining Wallets

Payments Financial Services

Infrastructure Blockchain Innovations Big Data

Trust

Gambling

News

Services

https://www.venturescanner.com/bitcoin

17

Innovation quadrant for blockchain technology

This quadrant shows a relative segmentation of the categories with respect to one another, data cumulative as of August 2017

Average Funding


PIONEERS DISRUPTORS

Ave

rage

Age

Blockchain Innovations

Payments

Exchanges Wallets

Mining

Trust

Financial Services

Infrastructure

Big Data

News/Data

Gambling

Services


18


The Blockchain Innovations category accounts for 43% of venture funding and 18% of total companies in the blockchain technology sector

Venture Investing in Blockchain Technology

Companies are categorized by function, and therefore can exist in multiple categories. Data cumulative through August 2017

-

50

100

150

200

250

0.0

0.5

1.0

1.5

2.0

2.5

Com

pan

y Cou

nt

Tota

l Fu

nd

ing

($B

)

VC Funding Count


19

VC funding into blockchain tech has grown in recent years

Overall blockchain technology funding grew at a CAGR of 153% from 2011-2016, and 2017 is currently at 157% of 2016 funding

Blockchain Technology Funding Over Time

Data cumulative through August 2017

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2010 2011 2012 2013 2014 2015 2016 2017

Tota

l Fu

nd

ing

($B

)


20

Blockchain technology funding amounts are focused on early stage events

Blockchain Technology Funding Amount By Round

Series A financings accounted for 48% of total 2016 sector VC funding

Graphs shows only the funding rounds listed therein, data cumulative through August 2017

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fun

din

g A

mou

nt (

$M)



21

Blockchain technology startups are a global phenomenon

Blockchain Technology Startup Count by Country


3500

Companies


22

A variety of top investors are making bets into blockchain technology

Selected Investor Activity in Blockchain Technology

The above count represents a subset of overall investor activity, data cumulative through August 2017

0

10

20

30

40

50

60

70

80

90

Nu

mb

er o

f In

vest

men

ts



23

Exits within the space have been dominated by acquisitions

Exit events within the sector has grown 14 times from 2012 to 2016, and 2017 is currently at 33% of the 2016 total

Blockchain Technology M&A and IPO Events By Year


0

2

4

6

8

10

12

14

16

2012 2013 2014 2015 2016 2017

Nu

mb

er o

f Exi

ts

Public Acquired


24

Recent blockchain technology funding statistics

There have been 29 funding events from April 2017 through June 2017

Recent Blockchain Technology Funding Round Counts

Graph shows only the funding types listed therein

0

1

2

3

4

5

6

7

8

9

10


Fun

din

g Ev

ent C

oun

t


25

Recent blockchain technology funding events

Notable Recent Blockchain Technology Funding Events


Venture $107,000,000 May 23, 2017

Initial Coin Offering $80,000,000 June 27, 2017

Series A $44,000,000 May 8, 2017

Series B $40,000,000 June 22, 2017

Post IPO Debt $25,000,000 May 11, 2017

Blockchain technology startups raised $414 million from April 2017 through June 2017


Insurtech Highlights

26

27

Insurance technology startups are creating new businesses in 14 categories

The full Venture Scanner market report and database tracks 1,317 companies

with $19B in funding

INSURANCE TECHNOLOGY

The graphic above shows only a sampling of companies in each category, data as of July 2017

Automotive Employee Benefits Enterprise/Commercial Health Data/Intelligence

Consumer Management

Education/Resources

Marketplace/Comparison

Infrastructure/Backend

User Acquisition Life, Home, P&C P2P Insurance Product Reinsurance

https://www.venturescanner.com/insurance-technology

28

Innovation quadrant for insurance technology

This quadrant shows a relative segmentation of the categories with respect to one another, data as of July 2017

Average Funding


PIONEERS DISRUPTORS

Ave

rage

Age

Reinsurance

Life, Home, P&C

Auto Insurance

Health Insurance

Employee Benefits

Insurance Data

Insurance Comparison

Insurance Infrastructure

Enterprise

Product Insurance

P2P InsuranceCustomer Management Education

User Acquisition


29


The Health Insurance category accounts for 29% of venture funding and 8% of total companies in the insurtech sector

Venture Investing in Insurance Technology

Companies are categorized by function, and therefore can exist in multiple categories. Data through July 2017

-

50

100

150

200

250

300

350

400

0

2

4

6

8

10

12

Com

pan

y Cou

nt

Tota

l Fu

nd

ing

($B

)

VC Funding Count


30

VC funding into insurtech has slowed in recent years

Overall insurtech VC funding grew at a CAGR of 36% from 2011-2016, and 2017 is currently at 43% of 2016 funding

Insurance Technology Funding Over Time


0

1

2

3

4

5

6

7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tota

l Fu

nd

ing

($B

)


31

Insurtech funding amounts are dominated by early stage events

Insurance Technology Funding Amount By Round

50% of 2016 insurtech VC funding went into Series A events

Graphs shows only the funding rounds listed therein, data through July 2017

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fun

din

g A

mou

nt (

$B)



32

Insurtech startups are a global phenomenon

Insurance Technology Startup Count by Country


7000

Companies


33

A variety of top investors are making bets into insurtech

Selected Investor Activity in Insurance Technology

The above count represents a subset of overall investor activity, data through July 2017

0

5

10

15

20

25

Nu

mb

er o

f In

vest

men

ts



34

Exits within the insurance technology space have grown in the past few years

Exit events within the insurtech sector grew by 270% from 2011 to 2016, and 2017 is currently at 49% of the 2016 total

Insurance Technology M&A and IPO Events By Year


0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Nu

mb

er o

f Exi

ts

Public Acquired


35

Recent insurance technology funding statistics

There have been 42 insurtech funding events from April 2017 through June 2017

Recent Insurance Technology Funding Round Counts

Graph shows only the funding types listed therein, data as of July 2017

0

2

4

6

8

10

12


Fun

din

g Ev

ent C

oun

t


36

Recent insurance technology funding events

Notable Recent Insurance Technology Funding Events


Series B $160,000,000 June 1, 2017

Series D $130,000,000 May 10, 2017

Series A $50,000,000 April 26, 2017

Series D $45,000,000 April 6, 2017

Series A $35,000,000 May 3, 2017

Insurtech startups raised $655 million from April 2017 through June 2017



37

Recent insurance technology exit events

Notable Recent Insurance Technology Exit Events

Company Acquirer Amount Date

$1,700,000,000 May 2, 2017

$156,000,000 April 9, 2017

Digital Insurance Group Unknown Jun 29, 2017

Unknown Jun 27, 2017

Unknown Jun 13, 2017

There have been 9 insurtech exits from April 2017 through June 2017, all of which have been acquisitions



Want to learn more about our technology startup reports?

Click here or contact [email protected]

See you soon at

https://www.venturescanner.com/