FinTech investment got off to a quiet start in 2017. According to CB Insights Global Fintech Performance report, VC-Backed FinTech companies raise $2.7B across 226 deals in the first quarter. Even though the face value of the investment itself might be considered big, investment in 2017 is on pace to drop 18% from 2016. The funding to global VC-backed FinTech companies rose 33% on a quarterly basis but was down to 47% compared to the same quarter last year.
Regionally, Europe saw deal activity to VC-backed FinTech companies rise a notable 74% on a quarterly basis for the first quarter. However, North America is facing the opposite situation where the deals in the first quarter drop by 12% as compared to Q4’16 and 33% from the same quarter last year.
Asia FinTech Performance
In Asia, a total of $826 Million is raised by Asian VC-backed FinTech Startups across 42 deals in the first quarter of 2017. At the current rate, Asia could see 8% fewer deals in 2017 than 2016. Nonetheless, early stage Fintech Companies financing stays level in Q1’17 with a total of $62M across 18 deals, just a little deviation from the Q4’16 total. Seven out of these top ten deals in Asia for Q1’17 went to China-based companies.
CBInsights, “The Global FinTech Report: Q1’17”