CB Insights Fintech Trends Report 2016

THE GLOBAL FINTECH REPORT:
2016 IN REVIEW
A comprehensive, data-driven look at global financial technology
investment trends, top deals, active investors, and corporate activity.
February 15, 2017
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communicate emerging technology trends using data
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2010 2011 2012 2013 2014 2015 2016
TABLE OF CONTENTS
# SECTION
7 Summary
8 Global Trends
28 North America
41 Europe
53 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 $12.7B ACROSS 836 DEALS IN CHINA CATAPULTS ASIA FINTECH FUNDING TO $5.4B IN 2016: 2016 set
2016: Global investment to venture-backed fintech companies a new record for VC-backed fintech companies in both deals and
retreated from 2015s high. On a year-over-year basis, funding to funding in Asia. Notably, Asia accounted for 43% of global funding
VC-backed fintech companies fell 13%. Deals dropped 1%. in 2016 behind $4.6B to VC-backed fintech companies in China.
22 FINTECH UNICORNS GLOBALLY VALUED AT $74B: The United States FINTECH DEALS IN THE US FALL BACK IN 2016: In the United States,
counts 11 of the 22 billion-dollar fintech companies, Europe counts VC-backed fintech companies saw a drop-off in both deals and
four, while Asia counts seven not including the financial affiliates of funding in 2016 with $5.5B raised across 422 deals. Investment
China internet juggernauts JD.com and Alibaba. dollars fell 29% from 2015 highs, while deal count matched 2014s
tally.
FINTECH MEGA-ROUNDS HIT NEW LOW IN Q416: After starting the year
with nine $50M+ fintech rounds in Q116, North America saw one- 500 STARTUPS, NEA, GENERAL CATALYST MOST ACTIVE INVESTORS IN
third the amount of mega-rounds in Q416. Europe saw zero $50M+ FINTECH IN 2016: 500 Startups, New Enterprise Associates, and
VC-backed fintech rounds for the fourth straight quarter, while Asia General Catalyst were the most active VCs in global fintech
fintech mega-rounds fell to a five-quarter low. companies in 2016. The list also included several fintech-focused
venture firms including Ribbit Capital, QED Investors, and Nyca
EUROPE FINTECH DEAL ACTIVITY REACHES FIVE-YEAR HIGH: In 2016, Partners.
European VC-backed fintech companies raised $1.2B across 179
deals. While funding fell 25% on a year-over-year basis, European 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
fintech deals rose 11% in 2016 and 124% compared to 2012s total.
any debt, secondary or line of credit transactions. All data is sourced from CB
Insights. Page 66 details the rules and definitions we use.
In 2016, global VC-backed fintech startups
raised
$12.7 BILLION
across
836 DEALS
ANNUAL GLOBAL FINANCING TREND TO VC-BACKED VC-BACKED FINTECH
FINTECH COMPANIES COMPANIES ATTRACT
2012 2016 $12.7B ACROSS 836
848 836
DEALS IN 2016
VC-backed fintech
725
companies saw both
deals and dollars retreat
572 in 2016 from 2015s
highs. On a year-over-
451
year basis, funding to VC-
backed fintech
companies fell 13%.
Deals dropped 1%.
$2.5 $3.1 $7.7 $14.6 $12.7

2012 2013 2014 2015 2016
Dollars ($B) Deals
TOP 20 GLOBAL VC-BACKED FINTECH DEALS
2016
UNITED STATES CHINA
$400M, Series C $180M, Growth Equity $1.2B, Series B $1B, Venture Round
(51xinyongka)
$160M, Series C $150M, Series D $84M, Series C II
$449M, Series F
$115M, Private Equity $103M, Series D (EasyLife) $235M, Series C

$273M, Series B
$100M, Series C $100M, Series E (51xinyongka)

$153M, Series C $84M, Series C II
$80M, Series A $76M, Growth Equity
BRAZIL HONG KONG
$160M, Series B
$80M, Series D
QUARTERLY GLOBAL FINANCING TRENDS TO VC-BACKED VC-BACKED FINTECH
FINTECH COMPANIES DEALS RISE SLIGHTLY IN
Q1'12 - Q4'16 Q416 AFTER TWO-
242 QUARTER DROP
231
218 198
205 201
213 Deals to VC-backed
197
187 184
fintech companies rose
172 7% on a quarterly basis in
163 162 161
Q416. Global fintech
133 130 funding ticked up 2% in
112 117 Q416, but was off more
105 101
than $2.4B from Q116s
$1,724 high.
$1,007
$1,629
$1,280
$3,102
$2,432
$5,211
$5,007
$1,917
$4,929
$2,916
$2,387
$2,441
$893
$652
$727
$573
$585
$610
$556
Dollars ($M) Deals
QUARTERLY GLOBAL FINTECH DEAL SHARE BY STAGE FINTECH SEED DEAL
Q4'15 - Q4'16 SHARE FALLS TO FIVE-
QUARTER LOW IN Q416
7%
12% 13% 13% 13%
5% Seed deal share fell
6% 4% 3% 4% 4%
2% 7% 3% 4% 7% below 30% in Q416 to hit
6%
12% 8% 7% a five-quarter low. Series
14%
16%
15%
D deal share rose to 7%,
12% 15%
marking a five-quarter
high.
21%
24%
25% 23%
26%
35% 41% 31% 33% 29%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Seed / Angel Series A Series B Series C Series D Series E+ Other
ANNUAL GLOBAL EARLY-STAGE FINANCING TRENDS TO EARLY-STAGE FINTECH
VC-BACKED FINTECH COMPANIES COMPANIES RAISED $2B
Seed Series A, 2012 - 2016 ACROSS 484 DEALS IN
500
484 2016
460
Seed and Series A
386 activity in fintech
attracted $2B across 484
deals in 2016.
287
Early-stage deals fell 3%,

while early-stage fintech
funding increased 18%
on an annual basis in
2016.
$0.7 $1.0 $2.0 $1.7 $2.0

2012 2013 2014 2015 2016
Dollars ($B) Deals
GLOBAL EARLY-STAGE FINTECH DEAL SIZE MEDIAN EARLY-STAGE
Q4'15 - Q4'16 FINTECH DEAL SIZE RISES
IN Q416
Median early-stage (Seed

Series A) deal size
among VC-backed
$2.8 fintech companies in
$2.5 $2.5
$2.3
Q416 rose to a five-
$2.2
quarter high in Q416 to
hit $2.8M. The Q416
median deal size was
27% higher than the
same quarter last year.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Median Early-Stage Deal Size ($M)
GLOBAL LATE-STAGE FINTECH DEAL SIZE GLOBAL MEDIAN LATE-
Q4'15 - Q4'16 STAGE DEAL SIZE FALLS
FOR SECOND
CONSECUTIVE QUARTER
$38.0
The median late-stage
$30.0
fintech deal size in Q416
fell to $20.3M, a 12%
drop on a quarterly basis.
$23.0
$20.0 $20.3
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Median Late-Stage Deal Size ($M)
FINTECH DEAL COUNT BY CONTINENT VC-BACKED FINTECH
Q4'15 - Q4'16
COMPANIES SEE DEALS
140 RISE IN NORTH AMERICA,
EUROPE
111 109
After dropping in Q316,
107
101 fintech deal share in
Europe rebounded in
Q416 and surpassed
Asia deal activity for the
quarter. North America
49 49 fintech deals rose 8% on
42 44
48 37 a quarterly basis in Q416
45
38
after falling for two
37 35
consecutive quarters.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
North America Asia Europe
FINTECH INVESTMENT ($B) BY CONTINENT NORTH AMERICA FINTECH
Q4'15 - Q4'16 FUNDING REBOUNDS, ASIA
$2.7
DROPS IN Q416
North America saw

funding to VC-backed
$1.9
fintech companies rise
$1.7
44% on a quarterly basis
$1.3
in Q416. Meanwhile, Asia
$1.2 fintech funding fell 42%
$1.0 in Q416 to its lowest
$0.9
$0.8 level in 2016.
$0.7
$0.5
$0.4
Europe continued to see
$0.3 $0.3
$0.2 $0.3 fintech funding remain
range-bound in Q416.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
MOST ACTIVE VC INVESTORS IN GLOBAL FINTECH 500 STARTUPS AND NEA
COMPANIES ARE MOST ACTIVE
2016 GLOBAL FINTECH
INVESTORS IN 2016
500 Startups, New

Rank Investor Rank Investor
Enterprise Associates,
1 500 Startups 7 Bain Capital Ventures
and General Catalyst
2 New Enterprise Associates 7 Andreessen Horowitz
were the most active VCs
3 General Catalyst Partners 12 Ribbit Capital
in global fintech
4 Khosla Ventures 12 Nyca Partners
companies in 2016. The
4 QED Investors 12 Bessemer Venture Partners
list also included several
4 Index Ventures 15 SV Angel
fintech-focused venture
7 SpeedInvest 15 Point Nine Capital
firms including Ribbit
7 Union Square Ventures 15 Santander InnoVentures
Capital, QED Investors,
7 Spark Capital 15 Comcast Ventures
and Nyca Partners.
CVC PARTICIPATION IN GLOBAL DEALS TO VC-BACKED CORPORATE
FINTECH COMPANIES PARTICIPATION IN
Q4'15 - Q4'16 FINTECH STAYS LEVEL
Corporate participation in
global VC-backed fintech
deals didnt see a notable
71% 71%
shift in Q416 compared
71%
77% 76% to the last two quarters.
29% 29% 29%

23% 24%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Corp / CVC Participation Other Investors
FINTECH MEGA-ROUNDS
$50M FINANCINGS TO VC-BACKED FINTECH COMPANIES
North America vs. Asia vs. Europe, Q4'15 - Q4'16
HIT NEW 5-QUARTER
9 LOWS IN ASIA, NORTH
AMERICA
Asia saw mega-round

7
activity drop in Q416
after staying level for
four consecutive
5
quarters. After starting
4 4 4 4 4 the year with nine $50M+
fintech rounds in Q116,
3
North America saw one-
2 2 third the amount of
mega-rounds in Q416.
Europe saw zero $50M+
0 0 0 0 VC-backed fintech
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 rounds for the fourth
straight quarter.
GLOBAL FINTECH UNICORNS BY VALUATION 22 FINTECH UNICORNS
$ Billion GLOBALLY VALUED AT
$18.5 Asia $74B IN AGGREGATE
USA
Europe
The US counts 11 of the
22 companies, while Asia
counts seven, six of
which are in China. China
$9.2 is also home to the
$8.0
financial affiliates of
Alibaba and JD.com, last
$4.8
$4.0 valued at $60B and
$3.5
$2.7 $2.4 $2.3 $2.3 $7.1B, respectively
$2.0 $2.0 $2.0 $1.9 $1.6
$1.1 $1.0 $1.0 $1.0 $1.0 $1.0 $1.0
INSURANCE TECH FINANCING HISTORY DEALS TO VC-BACKED
$900 Q4'15 - Q4'16
33 33
35 INSURANCE TECH
STARTUPS END YEAR ON
$800
30 HIGH
$700 2016 started off with a
24
23
25 bang for VC-backed
$600
insurance tech financing
20
$500
20 as Q116 registered
$768M across 33 deals.
$400
15
Insurance tech deal
activity in Q416 matched
$300
Q116s high after rising
10
for the second
$200
consecutive quarter.
5
$100
$279 $768 $387 $217 $257

$- 0
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals

FUNDING TO VC-BACKED
BLOCKCHAIN/BITCOIN FINANCING HISTORY 25 BLOCKCHAIN AND
Q4'15 - Q4'16
BITCOIN COMPANIES
22
FALLS FOR THIRD
20
20
STRAIGHT QUARTER
17 17 After jumping to over

$150M on the back of
14 15 financings to
Blockstream and Digital
Asset Holdings, funding
10 to blockchain and bitcoin
startups fell to $69M in
Q416 despite a slight
rise in deals.
5
$34 $153 $119 $90 $69

0
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals

PAYMENTS QUARTERLY FINANCING HISTORY PAYMENTS TECH
Q4'15 - Q4'16 FUNDING RISES AS DEALS
DROP IN Q416
53
Investment dollars to VC-

backed payments tech
40 40 39 companies (online and
mobile payments, point
31
of sales systems) rose
19% on a quarterly basis
in Q416. Deals fell
slightly in Q416 after
remaining flat for two
consecutive quarters.
$227 $303 $454 $402 $477

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals

MAJOR BANK INVESTMENTS TO VC-BACKED FINTECH MAJOR BANKS CONTINUE
COMPANIES TO INVEST IN FINTECH
Q4'15 - Q4'16
STARTUPS
8 8 8
Over the last five
quarters, Citigroup,
Banco Santander, and
5 5 5
Goldman Sachs or their
corporate venture units,
3 3
were tied for investment
2 2 2 2 activity to VC-backed
1 1 1 1 1 fintech companies.
PRIVATE TECH INVESTMENTS BY (RE)INSURERS THE RISE OF
2012 - 2016 (RE)INSURERS MAKING
TECH INVESTMENTS
On a year-over-year
basis, private tech
investments involving
(re)insurer participation
rose 49% in 2016 and
257% from 2014s tally.
1 28 67 100
4
2012 2013 2014 2015 2016
NUBANK RAISES TWO
NOTABLE FINTECH DEALS OUTSIDE CORE MARKETS
2016 LARGEST DEALS IN 2016
OUTSIDE OF NORTH
Company Round Country Select investors
$80M Founders Fund, Kaszek Ventures, Sequoia
AMERICA, EUROPE & ASIA
Brazil
(Series D // Q416) Capital, Tiger Global
$52M
Brazil
Founders Fund, Kaszek Ventures, Sequoia Brazil-based Nubank,
(Series C // Q116) Capital, Tiger Global
which provides a zero-
$30M*
(Venture // Q116)
Australia Undisclosed investors
fee credit card couple to
$19M
Australia
Global Founders Capital, Reinventure, Australian a personal finance-
(Series C // Q216) Capital Equity, Consolidated Press Holdings
$17.3M
focused app, has raised
Brazil Ribbit Capital, Kaszek Ventures, QED Investors
(Series C // Q216) nearly $235M in total
$15M
(Series B // Q316)
South Africa Omidyar Network, 4Di Capital, ACCION funding. Other $10M+
$10M
deals to companies
Australia Cultivation Capital, Rampersand, Reinventure
(Series A // Q216) outside of Europe, Asia,
Point Nine Capital, Square Peg Capital, Valar
$9M
(Series D // Q416)
New Zealand
Ventures, Movac
and North America went
$6M Kaszek Ventures, Ribbit Capital, Rise Capital, to personal finance
Chile
(Series C // Q316) Endeavor Catalyst
platform GuiaBolso and
$4.4M Kaszek Ventures, Redpoint e.ventures, Quona
(Series A - II // Q216)
Brazil
Capital, Frontier Investments Group marketplace lending
*Includes both debt and equity
platform SocietyOne.
In 2016, US VC-backed fintech startups raised
$5.5 BILLION
across
422 DEALS
US ANNUAL FINANCING TRENDS TO VC-BACKED FINTECH US FINTECH: $5.5B
COMPANIES ACROSS 422 DEALS
459
2012 - 2016
422 422
In the United States, VC-
376 backed fintech
companies saw a drop-
off in both deals and
286
funding in 2016 with
$5.5B raised across 422
deals. Investment dollars
fell 29% from 2015 highs,
while deal count fell back
to 2014 levels.
$1.7 $2.3 $5.2 $7.7 $5.5

2012 2013 2014 2015 2016
Dollars ($B) Deals
US QUARTERLY FINANCING TRENDS TO VC-BACKED US FINTECH DEALS
FINTECH COMPANIES REMAIN BELOW 100 FOR 3
Q4'15 - Q4'16 STRAIGHT QUARTERS
133
On a quarterly basis, VC-

backed fintech
102
99 98 companies in the US saw
92 funding rise 44%.
Despite the funding

dollar increase, fintech
deals were 26% lower
than the high of 133
deals set in Q116.
$1.0 $1.8 $1.5 $0.9 $1.3

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($B) Deals
US QUARTERLY FINTECH DEAL SHARE BY STAGE Q416 US SEED DEAL
Q4'15 - Q4'16
SHARE DROPS; SERIES A
REACHES 5-QUARTER
10% 7% HIGH
14% 17%
6% 19%
6% In Q416, seed-stage deal
2% 5%
7%
6% 6%
4% 4% share to venture-backed
20% 6% 6%
14% 10% 3% US fintech companies fell
13% to a 5-quarter low
11% 16%
10% accounting for 23% of
23% 23%
deals. Conversely, Series
18% A deal-share reached a 5-
22% quarter high taking 28%
28%
of deals in Q416.
40% 40% 25% 36% 23%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
US GLOBAL EARLY-STAGE FINANCING TREND TO VC- US EARLY-STAGE
BACKED FINTECH COMPANIES FUNDING HITS 5-YEAR
Seed Series A, 2012-2016 HIGH OF $1.2B IN 2016
In 2016, early-stage VC-

256 261
239
backed fintech
231
companies in the US
raised $1.2B across 231
deals, a 5-year high in
166
funding.
But US early-stage
fintech deal activity
dropped 11% year-over-
year in 2016.
$0.4 $0.6 $1.1 $0.9 $1.2

2012 2013 2014 2015 2016
Dollars ($B) Deals
US EARLY-STAGE FINTECH DEAL SIZE US EARLY-STAGE FINTECH
Q4'15 - Q4'16
DEAL SIZE HITS 5-
QUARTER HIGH IN Q416
$4.0
$3.5 Median early-stage

fintech deal size stood at
$4M in Q416, a 5-quarter
$2.5 high and 100% increase
$2.3
$2.0 on a quarterly basis over
Q316.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
US LATE-STAGE FINTECH DEAL SIZE LATE-STAGE US FINTECH
Q4'15 - Q4'16 DEAL SIZE IMPROVES IN
Q416
$38.0
Median late-stage fintech
deal size reached
$30.0 $26.5M, a 21% increase
$26.5 over Q316, but a 30%
$25.0
$21.9
drop compared to the
same quarter a year ago.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Median Late-Stage Deal Size ($M)
TOP 10 US FINTECH DEALS IN 2016 OSCAR AND PAYONEER
2016 WERE THE LARGEST
Company Round State Select investors
DEALS TO US VC-BACKED
$400M Thrive Capital, capitalG, Founders Fund, General FINTECH COMPANIES IN
New York
(Series C // Q116) Catalyst Partners, Khosla Ventures
2016
$180M Susquehanna Growth Equity, Technology
New York
(Growth Equity // Q416) Crossover Ventures, 83North, Carmel Ventures
$160M First Round Capital, Sequoia Capital, Athyrium
The top 10 US VC-
California
(Series C // Q216) Capital Management, Greenoaks Capital backed fintech deals in
$150M
(Series D // Q416)
California
General Catalyst Partners, capitalG, Sequoia
Capital, Founders Fund, Khosla Ventures
2016 raised $1.46B in
$115M Providence Equity Partners, Susquehanna aggregate funding.
Colorado
(Private Equity // Q416) Growth Equity
$103M* Index Ventures, New Enterprise Associates, SV
California
(Series D // Q116) Angel, First Round Capital
$100M Khosla Ventures, Lightspeed Venture Partners,
California
(Series C // Q216) a16z, Spark Capital
$100M Bessemer Venture Partners, Anthemis Group,
New York
(Series E // Q116) Menlo Ventures,
$80M Bessemer Ventures Partners, New Enterprise
Minnesota
(Series A // Q216) Associates, Flare Capital Partners
$76M
Texas FTV Capital
(Growth Equity // Q116)
*Metromile raised a total of $153M in 2016 funding.
CVC PARTICIPATION IN US DEALS TO VC-BACKED CORPORATES
FINTECH COMPANIES PARTICIPATE IN NEARLY
Q4'15 - Q4'16 1/4TH OF FINTECH DEALS
IN Q416
Corporates participated
in 24% of deals to US
venture-backed fintech
companies in Q416, as
72% 75%
75% 77% 76% deal share involving
corporates fell for the
second consecutive
quarter.
25% 28% 25% 24%

23%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
MOST ACTIVE VC INVESTORS IN US FINTECH COMPANIES NEA, KHOSLA, AND
2016 GENERAL CATALYST
WERE MOST ACTIVE US
FINTECH INVESTORS IN
2016
New Enterprise
1 New Enterprise Associates 9 Comcast Ventures Associates was the most
2 Khosla Ventures 9 SV Angel active VC investor in US-
2 General Catalyst Partners 12 QED Investors based fintech companies
4 Nyca Partners 12 Index Ventures in 2016. Khosla Ventures
4 Union Square Ventures 12 Thrive Capital and General Catalyst
4 Spark Capital 12 Tribeca Venture Partners Partners rounded out the
4 Bain Capital Ventures 12 500 Startups top three.
4 Andreessen Horowitz 12 Lightspeed Venture Partners
9 Bessemer Venture Partners 12 Google Ventures
CALIFORNIA FINTECH INVESTMENT ACTIVITY CALIFORNIA FINTECH
Q415 Q416 DEAL ACTIVITY DROPS IN
Q416, FUNDING SLIGHTLY
52 UP
48
43 43
In Q416, California
39
fintech companies raised
$529M across 43 deals.
Among the financings
making up the largest
deals in Q416 were
Stripes $150M Series D
and supply chain finance
company BlueVines
$49M Series D.
$690 $646 $742 $487 $529

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals
NEW YORK FINTECH INVESTMENT ACTIVITY NEW YORK FINTECH DEAL
Q415 Q416 AND FUNDING RECOVERS
IN Q416
36
In Q416, New York VC-
backed fintech companies
27 raised $420M across 20
25 deals.
20 Funding activity trended

downward after Q316, but
15
rose 175% on a quarterly
basis in Q416.
$148 $868 $233 $153 $420

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals
CANADA ANNUAL FINANCING TRENDS TO VC-BACKED CANADIAN FINTECH DEAL
FINTECH COMPANIES AND FUNDING SLIGHTLY
32
2012 - 2016 DOWN IN 2016
26 Canadian VC-backed
fintech companies raised
$263M across 26 deals
19
20 20 in 2016. Deal activity fell
19% on a year-over-year
basis, while funding
dropped 7%.
$113 $188 $128 $284 $263

2012 2013 2014 2015 2016
Dollars ($B) Deals
In 2016, European VC-backed fintech startups
raised
$1.2 BILLION
across
179 DEALS
EUROPEAN ANNUAL FINANCING TRENDS TO VC-BACKED EUROPEAN FINTECH DEAL
FINTECH COMPANIES ACTIVITY REACHES FIVE-
2012 - 2016 YEAR HIGH IN 2016
179
161
In 2016, European VC-
backed fintech companies
raised $1.2B across 179
122
deals.
While funding fell 25% on

80 82
a year-over-year basis,
European fintech deals
rose 11%.
$0.3 $0.3 $1.2 $1.6 $1.2

2012 2013 2014 2015 2016
Dollars ($B) Deals
EUROPEAN QUARTERLY FINANCING TRENDS TO VC- EUROPEAN FINTECH
BACKED FINTECH COMPANIES DEALS AND FUNDING UP
Q415 Q416 IN Q416
49 49
European VC-backed
44
42 fintech companies raised
37
in Q416.
Still, fintech deals in the

second half of the year
were down 17% from the
first six months of 2016,
while funding decreased
28%.
$350 $298 $403 $233 $272

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals
EUROPEAN QUARTERLY FINTECH DEAL SHARE BY STAGE EUROPEAN EARLY-STAGE
Q4'15 - Q4'16 ACCOUNTED FOR 64% OF
DEALS IN Q416
8% 6% 8% 9%
12%
4% 6% 5% 2% Series A deal share in
4% 2%
10% 5% 9% European fintech
10% 10%
5% 11%
16%
companies accounted
5%
5% 12% 14% for 25%+ of all deals for
14% 27%
the third straight quarter.
20% 25% Seed deal share dropped
27%
slightly from 43% to 39%
on a quarterly basis in
Q416.
50%
41% 43%
35% 39%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
EUROPEAN ANNUAL EARLY-STAGE FINANCING TRENDS EUROPEAN EARLY-STAGE
TO VC-BACKED FINTECH COMPANIES DEALS HITS 5-YEAR HIGH
Seed Series A, 2012 - 2016
IN 2016
114
European VC-backed
99 early-stage fintech
companies raised $366M
83
across 114 deals in 2016,
64 a 5-year high in deal and
57 funding activity.
Early-stage fintech
activity in Europe
increased 15% while
funding increased 4% in
2016.
$113 $155 $327 $351 $366
2012 2013 2014 2015 2016
Dollars ($M) Deals
EUROPEAN EARLY-STAGE FINTECH DEAL SIZE MEDIAN EUROPEAN
Q4'15 - Q4'16 EARLY-STAGE DEAL SIZE
DROPS FOR SECOND
STRAIGHT QUARTER
$3.4 Early-stage median

$3.0 fintech deal size in
Europe fell to $2.2M in
$2.4 Q416, a 27% decrease
$2.2
from Q316.
$1.5
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
EUROPEAN OVERALL FINTECH DEAL SIZE OVERALL MEDIAN DEAL
Q4'15 - Q4'16 SIZE DROPPED 32% IN
$5.1 Q416
$4.4
Overall European median
fintech deal size spiked
in Q216, but has declined
$3.0 $3.0 for two straight quarters
to $3M in Q416.
$2.0
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Median Overall Deal Size ($M)
TOP 10 EUROPEAN FINTECH DEALS IN 2016 GERMANY AND UK
2016 DOMINATE EUROPE TOP
Company Round Country Select investors 10 FINTECH DEALS OF
$46M
Germany
HarbourVest Partners, Acton Capital Partners, 2016
(Series C // Q216) Highland Europe, b-to-v, TA Ventures
$43M Seedrs, House of Fraser, Omidyar Network,
United Kingdom
(Corp. Minority // Q416) Route 66 Ventures, e.ventures While Europe did not see
$40M
(Series B // Q216)
Germany
Earlybird Venture Capital, Redalpine Venture
Partners, Valar Ventures, Horizons Ventures
a venture-backed fintech
$37.5M Balderton Capital, Pentech Ventures, Taipei
company raise a $50M+
United Kingdom
(Series C // Q416) Fubon Bank, Convoy Global Holdings financing round in 2016,
$34.4M
(Series B // Q116)
Germany
Rocket Internet, Access Industries, Holtzbrinck
Ventures
the top 10 VC-backed
$34M Earlybird Venture Capital, Neuhaus Partners, Runa European fintech deals
Germany
(Series D // Q316) Capital, moji.capital
accounted for nearly
$31.7M Seedrs, House of Fraser, Omidyar Network, Route
(Series B // Q216)
United Kingdom
66 Ventures, e.ventures $350M in total funding.
$28.7M
United Kingdom Oaktree Capital Management, Leumi Partners
(Series C // Q116)
$28M Salesforce Ventures, Target Global, Horizons
Germany
(Series A // Q316) Ventures
Blackstone Group, Colchis Capital, DW Partners,
$27.3M
Ireland Fenway Summer Ventures, Invus Group, KCK
(Venture Round // Q116)
Group, QED Investors; Ridge Road Partners
CVC PARTICIPATION IN EUROPEAN DEALS TO VC- CVC DEAL ACTIVITY IN
BACKED FINTECH COMPANIES EUROPE CLIMBS TO FIVE-
Q4'15 - Q4'16 QUARTER HIGH
More corporates are

participating in European
fintech investment.
61%
73%
78%
82% Corporate participation in
93%
European fintech
companies has steadily
increased from 7% in
Q415, to 39% in Q416.
39%
27%
18% 22%
7%
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
MOST ACTIVE VC INVESTORS IN EUROPEAN FINTECH SPEEDINVEST WAS MOST
COMPANIES ACTIVE VC IN EUROPEAN
2016 FINTECH COMPANIES IN
2016

SpeedInvest led all VCs
1 SpeedInvest 5 SEED Capital
by fintech investments to
2 German Startups Group 5 Earlybird Venture Capital
European companies in
2 Global Founders Capital 5 Holtzbrinck Ventures
2016. Other VCs active in
2 Balderton Capital 5 Seedcamp
Europe fintech in 2016
5 Octopus Ventures 5 High-Tech Grunderfonds
included Balderton
5 Point Nine Capital 5 Index Ventures
Capital, Passion Capital,
5 Passion Capital
and Index Ventures,
among others.
UK FINTECH INVESTMENT ACTIVITY UK FINTECH DEALS AND
Q4'15 - Q4'16 FUNDING REBOUND IN
19 Q416
UK VC-backed fintech
17 companies raised $173M
across 16 deals in Q416.
16
On a quarterly basis,
deals increased 33%
14
after falling for three
straight quarters, while
funding increased 122%
12
in Q416.
$275 $121 $122 $78 $173

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals
GERMANY FINTECH INVESTMENT ACTIVITY GERMAN FINTECH DEALS
Q4'15 - Q4'16
15
FALL THROUGH THE END
14
OF 2016
German VC-backed
11 fintech companies raised
$34M across 7 deals in
Q416, a 5-quarter low in
8
deal activity.
7
Deal count has trended

downward for two
straight quarters after
peaking in Q216.
$10 $107 $175 $105 $34

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($M) Deals
In 2016, Asian VC-backed fintech startups
raised
$5.4 BILLION
across
165 DEALS
ASIAN ANNUAL FINANCING TREND TO VC-BACKED ASIA FINTECH: $5.4B
FINTECH COMPANIES ACROSS 165 DEALS
2012 - 2016
162 165 In Asia, deals and
funding for VC-backed
134 fintech companies have
been trending upward for
the last 5 years.
2016 set a new record

71 for VC-backed fintech
58 companies in both deals
and funding. Asia
accounted for
approximately 20% of
deals globally and 43% of
$0.3 $0.3 $1.1 $4.8 $5.4
global funding in 2016.
2012 2013 2014 2015 2016
Dollars ($B) Deals
ASIAN QUARTERLY FINANCING TRENDS TO VC-BACKED ASIAN FINTECH DEAL
FINTECH COMPANIES ACTIVITY DIPS TO
Q4'15 - Q4'16 5-QUARTER LOW
48
45 VC-backed fintech
companies in Asia raised
38 37
35
in Q416, a decrease in
both deals and funding
from Q316.
Despite the slowdown in

deals in H216, both
deals and funding hit an
annual high in 2016.
$0.5 $2.7 $0.8 $1.2 $0.7
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($B) Deals
ASIAN QUARTERLY FINTECH DEAL SHARE BY STAGE ASIAN FINTECH LATE-
Q4'15 - Q4'16 STAGE DEAL SHARE HIT
NEW HIGH
4% 8% 6%
2% 2%
16% 2% 16% 9%
13%
Despite the dip in
3% 3%
3% 5% number of deals, late-
24% 20%
11%
17% stage deal share (Series
D+) grew from 3% in
18% 32%
17% Q316 to 9% in Q416.
22%
23%
Seed-stage deal share
23% recovered from a dip in
37% 27%
Q316 and accounted for
42% 40% 26% of deal share in
26% Q416, the most of any
13% 16%
other stage.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
ASIAN ANNUAL EARLY-STAGE FINANCING TREND TO VC- ASIAN EARLY-STAGE
BACKED FINTECH COMPANIES FINANCING ACTIVITY
Seed Series A, 2012-2016 FALLS FROM 2015
Asian VC-backed early-

stage fintech companies
96
88
92 saw both deals and
dollars drop in 2016 with
$320M raised across 92
deals.
54
47
This is in contrast with
overall Asian fintech
financing activity, which
saw a significant
$105 $162 $439 $370 $320
increase in 2016.
2012 2013 2014 2015 2016
Dollars ($M) Deals

ASIAN EARLY-STAGE FINTECH DEAL SIZE ASIAN FINTECH EARLY-
Q4'15 - Q4'16 STAGE DEAL SIZE HIT
$5.0 4-QUARTER HIGH
In Q416, the median

early-stage fintech deal
$3.5 size in Asia rose for the
$3.3
third consecutive quarter
to $3.5M.
$2.0 This was the best quarter

$1.5 in 2016, but still below
the highs of the same
quarter a year prior.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
TOP 10 ASIAN FINTECH DEALS IN 2016 CHINA DOMINATES TOP
2016 ASIA FINTECH DEALS IN
Company Round Country Select investors 2016
$1.2B Ping An Insurance, Morgan Stanley, BlackPine
China
(Series B // Q116) Private Equity Partners, CDH Investments
$1B China Harvest Investments, Sequoia Capital In 2016, the top 10 Asia-
China
(Venture Round // Q116) China, China Taiping Life Insurance
based fintech deals are
$449M
(Series F // Q316)
China Kunlun Worldwide, BlueRun Ventures worth in aggregate
$310M
China
Tiantu Capital, Xinhu Zhongbao, GGV Capital, around $4B.
(Series C // Q316) Harvest Global Investments
$273M
(EasyLife
Financial) (Series B // Q416)
China H Capital The venture-backed list
$235M Matrix Partners China, Huashang Capital, JD.com, doesnt include Alibaba
China
(Series C // Q216) DST Global
affiliate Ant Financial,
$160M Sequoia Capital China, TOM Group, ING, DST
(Series B // Q116)
Hong Kong
Global, Iconiq Capital which raised $4.5B in a
$153M
China Hakim Co., Vision Knight Capital, Shanda Group
private placement in April
(Series C // Q216)
2016.
$84M Tiantu Capital, Xinhu Zhongbao, GGV Capital,
China
(Series C - II // Q416) Harvest Global Investments
$73M Fosun Capital, Guosen Hongsheng Investment,
China
(Series C // Q416) Sunshine Insurance Group
CVC PARTICIPATION IN ASIAN DEALS TO VC-BACKED CORPORATE
FINTECH COMPANIES PARTICIPATION IN ASIA
Q4'15 - Q4'16
FINTECH FALLS IN Q416
Corporate participation in
Asian VC-backed fintech
deals dipped to 40% in
51%
55%
63% 60% Q416 after 2 consecutive
69% quarters of growth.
Corporates saw slightly

less deal share than the
same quarter last year
49% when corporates
45%
38% 40% participated in 45% of
31%
Asian fintech deals.
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
MOST ACTIVE VC INVESTORS IN ASIAN FINTECH 500 STARTUPS WAS
COMPANIES MOST ACTIVE VC IN
2016 ASIAN FINTECH
STARTUPS
In 2016, 500 Startups
was the most VC
1 500 Startups 5 Golden Gate Ventures
investor in Asia-based
2 East Ventures 5 Accel Partners India
fintech companies. East
2 Sequoia Capital India 5 IMJ Investment Partners
Ventures and Sequoia
4 SBI Investment 5 Arbor Ventures
Capital India tied at the
5 IDG Capital Partners
second spot.
CHINA ANNUAL FINTECH INVESTMENT ACTIVITY CHINA FINTECH
2012 - 2016 INVESTMENT REACHES
46 NEW HIGHS IN 2016
44
42
In 2016, VC-backed
fintech companies in
China saw both deals
and dollars reach a 5-
year high with $4.6B
raised across 46 deals.
18
10
$0.2 $0.2 $0.8 $2.8 $4.6

2012 2013 2014 2015 2016
Dollars($M)
Dollars ($B) Deals
CHINA QUARTERLY FINTECH INVESTMENT ACTIVITY CHINA DEAL ACTIVITY
Q4'15 - Q4'16 DROPS IN Q416, FUNDING
DIPS TO Q216 LEVELS
13 13
12 In Q416, venture capital-
backed China fintech
companies raised $600M
across 8 deals, as deals
dropped for the second
8 8
consecutive quarter.
$0.3 $2.4 $0.6 $1.0 $0.6

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
Dollars ($B) Deals
INDIA ANNUAL FINTECH INVESTMENT ACTIVITY FINTECH DEAL ACTIVITY
2012 - 2016 IN INDIA REACHES 5-YEAR
HIGH
50
47 In 2016, VC-backed
fintech companies in
India raised $388M
across 50 deals, a 5-year
30
high for deals.
On an annual basis,
20 funding to VC-backed
17 Indian fintech companies
fell by 75% in 2016 after
several mega-rounds in
2015 to mobile
$22 $38 $163 $1,580 $388 payments provider
2012 2013 2014 2015 2016 Paytm.
Dollars ($M) Deals
INDIA QUARTERLY FINTECH INVESTMENT ACTIVITY INDIA FINANCING
Q4'15 - Q4'16 ACTIVITY DROPS-OFF IN
16
Q416, DEALS GAIN
15 SLIGHTLY
In Q416, Indian fintech
12 companies raised $32M
across 10 deals, a 5-
10 quarter low in funding
9
and the second lowest in
deals.
The largest deal in Q416

was a $10M Series B
investment to
Indifi Technologies, an
online platform that
$62 $73 $157 $127 $32
facilitates alternative
Q4'15 Q1'16 Q2'16 Q3'16 Q4'16
lending.
Dollars ($B) 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:

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

$2.5 $3.1 $7.7 $14.6 $12.7

$115M, Private Equity $103M, Series D (EasyLife) $235M, Series C

$100M, Series C $100M, Series E (51xinyongka)

$80M, Series A $76M, Growth Equity

BRAZIL HONG KONG

Dollars ($M) Deals

35% 41% 31% 33% 29%

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

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

Early-stage deals fell 3%,

$0.7 $1.0 $2.0 $1.7 $2.0

Dollars ($B) Deals

Median early-stage (Seed

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Median Early-Stage Deal Size ($M)

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Median Late-Stage Deal Size ($M)

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

North America Asia Europe

North America saw

North America Asia Europe

500 Startups, New

29% 29% 29%

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Corp / CVC Participation Other Investors

Asia saw mega-round

$279 $768 $387 $217 $257

Dollars ($M) Deals

17 17 After jumping to over

$34 $153 $119 $90 $69

Dollars ($M) Deals

Investment dollars to VC-

$227 $303 $454 $402 $477

Dollars ($M) Deals

$1.7 $2.3 $5.2 $7.7 $5.5

Dollars ($B) Deals

On a quarterly basis, VC-

Despite the funding

$1.0 $1.8 $1.5 $0.9 $1.3

Dollars ($B) Deals

40% 40% 25% 36% 23%

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

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

In 2016, early-stage VC-

$0.4 $0.6 $1.1 $0.9 $1.2

Dollars ($B) Deals

$3.5 Median early-stage

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Median Early-Stage Deal Size ($M)

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Median Late-Stage Deal Size ($M)

*Metromile raised a total of $153M in 2016 funding.

25% 28% 25% 24%

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

Corp / CVC Participation Other Investors

$690 $646 $742 $487 $529

Dollars ($M) Deals

20 Funding activity trended

$148 $868 $233 $153 $420