Funding is on track to surpass 2017’s record with over $2bn invested in Q1 2018.
Capital invested in the first three months of 2018 into disruptive wealth management firms has reached $2bn, according to research agency Fintech Global, which it says represents 79.3 per cent of last year’s total.
Almost 60 per cent of this funding came from six later-stage deals valued $100m and above. There were eight such deals closed during the whole of 2017.
Last year interest in wealthtech firms soared following a spate of launches into robo advice and strategi investments from incumbents into disruptive players such as Scalable Capital.
Investments in wealthtech firms has increased from $928.6m in 2014 to $2.5bn in 2017 at a CAGR of 28.5 per cent.
Despite the comparatively high investment total, deal activity is slightly behind pace compared to last year. The 51 deals in Q1 represent 21.2 per cent of the total number of deals completed in 2017.
The first three months of 2018 represent the strongest funding quarter to date for disruptive personal finance and wealth management firms.
The largest wealthtech deal in Q1 2018 was a $500m secondary investment in Credit Karma, a credit and financial management platform, from Silver Lake Partners.