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Blockchain and AI boosts fintech investment bounce back, exits increase

By Daniel Lanyon on 12th October 2017

The City of London and KPMG’s latest research into the sector bodes well.


The global fintech market made a strong rebound in the second quarter of this year, according to a new report from KPMG and the City of London


The report, named The Value of Fintech, assesses the broader benefits of evolving technologies in financial service and highlight the industry’s longevity and its strategic importance to the UK economy.


Total investment more than doubled on a quarter over quarter basis to more than $8.4bn.


Substantial increases in PE and M&A funding propelled the increase, while the amount of VC investment held relatively steady. While the number of fintech deals remained well off of the peaks experienced in 2015, deals volume remained healthy during Q2 with 293 transactions.


Source: KPMG


Corporate participation in all VC deals globally reached a new high of 21 per cent during the first half of 2017, up from 17 per cent in 2016 participating in $2.6bn worth of capital.


Fintech exits also increased during Q2 of 2017, with the number of exits matching the second-best quarter experienced to date.

Source: KPMG

“While the total exit value remained relatively weak, the increase in activity may be a positive sign leading into the remainder of the year,” KPMG said.


Niels Turfboer, Spotcap’s Managing Director of UK and Benelux, says fintech has taken the lead in showing Britain remains open for business. 


“The combination of smart regulation, political support and an attractive talent pool has pulled in innovators and investors from across the globe. To maintain this momentum it will be crucial for the ecosystem to be agile and respond to current needs including continued access to talent, risk and identity management," he said. 



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