Fintech companies around the world are receiving huge funding rounds at sky high valuations; Goldman Sachs’ Principal Strategic Investments Group...
Dow Jones Venturesource has released its first quarter Europe Venture Capital Report; venture capital funding for the quarter was EUR2.23 billion ($2.42 billion); Atomico's Atomico Ventures IV Fund led fundraising with EUR723.30 million ($786.02 million) representing 32% of total fundraising for the quarter; business and financial services was the top funding sector with EUR877.92 million ($954.05 million) across 163 transactions; Funding Circle reported one of the top five deals in the first quarter with its funding round of EUR94.43 million ($102.62 million); by geography, the UK led fundraising with EUR970.28 million ($1.05 billion) from 150 deals and France was second with EUR398.02 million ($432.53 million) from 78 deals; the full report is available here. Source
The European Investment Fund (EIF) supports venture capitalists across Europe. Its publication, "The European venture capital landscape: an EIF perspective Volume III: Liquidity events and returns of EIF-backed VC investments," studies the investment performance of over 3,600 EIF-backed venture capital investments made from 1996 to 2015. Its primary goal is to identify the effects of the EIF's venture capital activity.
Results across venture capital investments are wide ranging with 4% of exits returning more than five times the investment and generating 50% of the total aggregated proceeds. Among these successful exits are 152 company IPOs of EIF-backed start-ups from 1996 to 2015 on 20 different stock exchanges around the world.
Investment from the European Investment Fund could be an important factor for the UK to manage as it exits from the European Union. Approximately 20% of the EIF's investment has been in the UK and over the past four years the EIF has invested EUR2.8 billion in the UK directly. If funding ceases many venture capital firms may consider moving their headquarters to provide for continued EIF investment in EU locations. Source
Andy Stewart, managing partner at Motive Partners, says fintechs are overvalued in the current market environment; speaking at the UK International Fintech event in London, Stewart says the over valuations are a result of success in the market and confidence from venture capital investors; Stewart cautions investors to watch for buzzwords including machine learning or blockchain that can enhance the value proposition of the solution but may be overvaluing a company's value overall; Stewart's Motive Partners launched in 2017 and is seeking to raise $1 billion. Source
CB Insights reports on the venture capital industries top investors in unicorn exits; Sequoia Capital ranks first on the list of investors investing in unicorn startups with private market exits during 2009 to March 2017; Sequoia Capital has invested in 18 companies with unicorn exits including fintech company Square Capital. Source
Fintech Global provides the top ten deals for the quarter; financing from the top ten deals was $658 million and accounted for 84% of the sector's total financing; Chinese P2P lender Tuandaiwang was the quarter's financing leader obtaining $262.6 million and was the only Asian fintech company in the top ten; Europe reported the majority of top ten financings with five funding deals. Source
Boutique investment bank GP Bullhound has published a report on the fintech market identifying 39 global fintech unicorns valued at $1 billion or more and showing global venture capital investment into fintech at $13.6 billion in 2016; in its report the firm also identities a watch a list of 17 companies it expects to exceed $1 billion based on their growth, business models and market opportunity; numerous marketplace lenders are represented on the list including LendInvest, Prodigy Finance, ID Finance, Ebury and Kreditech. Source
Edward Jones has announced a multi-year partnership with St. Louis based venture fund SixThirty; SixThirty invests in eight to 10 fintech startups annually with each startup receiving an investment of up to $100,000 along with support from a business development program that includes mentoring and networking; Edward Jones will be involved in numerous aspects of the venture fund's investing and Frank LaQuinta, a general partner with Edward Jones, will join SixThirty's investment committee. Source
CB Insights reports on first quarter 2017 venture capital deals in their "MoneyTree Report" published in collaboration with PwC; globally, venture capitalists invested $27.1 billion in the first quarter with 2,228 deals; deals and investments increased from the fourth quarter of 2016 and were below the first quarter of 2016. Source
In partnership with The New York Times, CB Insights reports on the top 100 venture capitalists; top on the list is Bill Gurley from Benchmark; notable increases from 2016 include Founders Fund's Brian Singerman who moved to fifth and Lightspeed Venture Partners' Ravi Mhatre who is ranked sixth. Source