Revealing The Data Behind VC Fintech Investment by PitchBook
As the years go by and the tides of what’s hot in tech ebb and flow accordingly, we see new industries rise to prominence and past ones fade into the distance. One industry that has seen a quick uptick of activity in recent years is fintech. The term is often thrown around loosely, which can make it hard to understand what fits within the vertical, but fintech is generally used to describe a company that is utilizing technology to improve or innovate a sector of the financial industry. This definition gives birth to a range of enterprises that may be defined as fintech, such as peer-to-peer lending services, payment processors and innovative insurance companies. Over the past five years the number of VC-backed fintech companies has skyrocketed, from 276 in 2010 to just under 1,000 today.
Along with the increase of fintech companies, we’ve also seen a stark increase in venture capital deployed to fund these companies. Capital invested in fintech startups has consistently increased over the past five years, with a notable jump from $1.76 billion in 2013 to $4.74 billion in 2014. Venture investors aren’t the only ones taking note of the industry either. In J.P. Morgan’s 2014 annual report, CEO Jamie Dimon warns shareholders that “Silicon Valley is coming”, alluding to the fact that this industry will be seeing lots of change in the coming years.
To help everyone process the activity around fintech, we’ve created a datagraphic overviewing VC investment in the vertical. Highlights include notable financings, most active investors and top companies ranked by the PitchBook Growth Score. Check it out below.