VC Investment In Fintech Drops Off From Last Year’s Highs

VC Investment In Fintech Drops Off From Last Year’s Highs

While fintech used to dominate headlines, it has seemingly been replaced this year by other hot industries, such as AI and IoT. Venture investment in the space has also cooled.

The US fintech industry had seen a steady increase in both VC financings and capital invested from 2010 to 2015, according to the PitchBook Platform. In 2010, investors put $558.8 million to work through 132 rounds, figures that ballooned last year to $6.7 billion invested across 603 deals. This year, though, has seen $3.9 billion disbursed via 414 financings.

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A decline can also be seen when looking at other metrics. Median post-valuations, for example, mimicked the activity growth of the past few years, hitting $32 million in 2015. This year, that figure has come down to just $21 million. And while it’s tempting to attribute the drop to the valuation bubble experienced last year, one would expect most other industries would also have seen a drop if that were true—but it isn’t the case. SaaS startups actually saw a median post-val increase this year in the US, as did marketing tech companies.

PitchBook Platform users can view the full data on VC investment in fintech, SaaS and marketing tech.

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