Life.SREDA VC is a venture capital firm that invests in fintech and blockchain startups. It has offices in Moscow, Singapore, and London, and has made 13 investments in Europe, the US, UK, Germany, and CIS since 2012. Life.SREDA also conducts fintech research and publishes an annual report on the state of the fintech industry called "Money of the Future". The summary highlights Life.SREDA's locations, investments, and research activities.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
Summary of findings
2018 VC-backed fintech deals and funding set an annual record: In 2018, - VC-backed fintech companies raised $39.57B across 1,707 deals globally. Deals were up 15% year-over-year while funding surged 120% on the back of 52 mega-rounds ($100M+) worth $24.88B combined.
Fintech is happening on global scale with deals outside of core markets (US, UK, and China) accounting for 39% of deals: Fintech deal hubs are starting to emerge globally. The count of unique fintech startups raising funding topped an annual high of 1,463 companies, and the unique number of investors reached 2,745 boosted by an influx of corporate investors.
Early-stage deals, as a percentage, fell to a 5-year low as investors concentrated bets in perceived winners: Global seed and Series A fintech deals grew 5% on an annual basis in 2018, but fell as a percentage of total deals to 57%. US early-stage deals were flat YOY as investors concentrated their bets in established fintech unicorns.
There are 39 VC-backed fintech unicorns worth a combined $147.37B: Q4'18 saw five new unicorns births (Plaid, Brex, Monzo, DevotedHealth, and Toss) and two in the first month of Q1’19 (N26 and Confluent). The cohort’s total valuation in 2018 was boosted by a record year for megarounds to existing unicorns, including Gusto and Robinhood, among others.
CB Insights Global Fintech Report Q3 2019Jeff Martinez
Q3’19 fintech funding topped $8.9B, a quarterly record when adjusting for Ant Financial’s $14B investment in Q2’ As of Q3, fintech has raised $24.6B in 2019, already surpassing 2017’s annual total. Funding grew on the back of 19 $100M+ rounds worth approximately $4B in Q3’19.
Deals rebounded slightly in Q3’19 but are likely to fall short of 2018’s record as a result of a continued pullback in early stage investing: Fintech deals in Q3’19 grew 6% from Q2'19, but they have dropped in every quarter in 2019 when compared to the same time frame last year. Early stage (seed/angel and Series A) deals fell to an 11 quarter low and funding hit a 7 quarter low.
The US saw deals dip to an 11 quarter low while Asia saw deals spike and nearly surpass the US in Q3’19: The US saw deals dip as a result of a pull back in early stage deals, which also contributed to the overall drop in 2019 global deals through Q3’19. Asia saw deals rebound as China reclaimed the
lead from India as Asia’s top deal hub.
Southeast Asia fintech topped new annual highs: Southeast Asia set a new annual record with $701M raised across 87 deals through Q3’19 . The top 2 deals since 2015 occurred in 2019: a $100M Series B to Singapore based Deserka and a $100M Series C to Vietnam based MoMo.
India and China continued to battle over the title of Asia’s top fintech hub in Q3’19: China saw deals surge to 55 in the quarter, reclaiming the lead from India with 33 deals. India saw $674M in funding, narrowly pulling ahead of China’s $661M.
Challenger banks have raised over $3B in 2019 YTD and Q3’19 saw $1.3B invested a quarterly funding high: Q3’19 saw challenger banks funding bolstered by rounds to unicorns, including NuBank’s $400M Series F, which was the largest reported equity investment to a challenger bank and made
NuBank the highest valued challenger at $10B. Startup focused challenger banks saw competition heat up with deals to Ramp Financial, Mercury, and Stripe, which launched card issuing.
There are 58 VC backed fintech unicorns worth a combined $213.5B: Q3’19 saw 6 new fintech unicorn births (Hippo, Judo, Deposit Solutions, QuintoAndar, Dave , and C2FO), and 3 more have occurred in Q4’19 as of 11/11/19 (Next Insurance, Ebanx , and Riskified ). Other highly valued unicorns continued to raise late stage capital, including NuBank, Gusto, and Stripe, among others, but none signaled an IPO was imminent.
Diving deep into literally millions of interactions and conversations with different networks such as Facebook, Twitter and Instagram, blogs, forums and news sites in order to bring you analytical info about how social media affects different sectors like:Sharing Economy, Banking and Finance, Ecommerce, Telecom and Fintech.
The Evolution of Fintech And What it Means for AdvertisersMSFTAdvertising
SLIDE 1
The Evolution of Fintech And What it Means for Advertisers
By Phil Jones, Analytical Lead - Finance & Insurance
SLIDE 2
2012 was the peak year for Fintech companies founded.
2012 - 281 Fintech companies founded
2014 - surge of Deposits & Lending companies founded
2017 - 10 companies founded
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-dcfs-fintech-by-the-numbers-web.pdf
SLIDE 3
Investment peak in 2016, driven by Deposits & Lending
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-dcfs-fintech-by-the-numbers-web.pdf
SLIDE 4
Will ‘open banking’ shake things up further?
-Forced 9 of the biggest banks to release their data in a secure, standardised form
-Rich data on spending and borrowing can thus be shared with third parties, who can then use the data to create new products
-Consumers can access multiple accounts from competitor banks within one single interface
SLIDE 5
The regulation generated a lot of press…
SLIDE 6
...Which contributed to an increase in searches.
SLIDE 7
Young + Males over-index for Fintech searches.
SLIDE 8
There are more searches on mobile than traditional banking
SLIDE 9
TransferWise & Monzo are the biggest and strongest growing.
SLIDE 10
What’s next for Fintech Banking?
SLIDE 11
There is a unique opportunity to streamline customer journey. Rapid utility switching & instant direct debit.
From “toothbrushes” to ecosystem: we will see fintech-bank soonVladislav Solodkiy
Presentation for the article: http://goo.gl/FeVkKQ.
The next step (and this step will be not about “more money”, but about real evolution of fintech-movement to ecosystem) in fintech will belongs to new generation of “fintech-banks” (maybe, they will be totally separated from traditional banks), which will have Bank-as-service platforms as back-end, and neobanks as front-ends – to tailor all these services for final end-users in unique bundle and user experience.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
Innovate Finance’s 2017 VC FinTech investment landscape provides investors, startups and the wider FinTech ecosystem the data to understand trends and capital flows as the FinTech market evolves. Overall figures suggest that the UK has had its best year on record and was a global leader in terms of capital invested and deal volume, second only to the US.
Investing in fintech: Trends in financial technology for investors and entrep...OurCrowd
Join Zack Miller, Head of the Investor Community at OurCrowd, and Mick Weinstein, VP of Marketing at BIllGuard for an in depth discussion of the recent trends and opportunities in the dynamic financial technology industry. Zack and Mick have both helped build some of the top companies in the space including Seeking Alpha, Covestor, OurCrowd, BillGuard, Lending Club, SigFig and more.
Join us to learn about:
How top investors and entrepreneurs think about the entire fintech ecosystem, from online asset management, to financial content, to consumer finance apps, and crowdfunding.
Which business models are taking hold and their future prospects.
The challenges and opportunities for investing and building a valuable company in the financial space.
Mercer Capital's Value Focus: FinTech Industry | Second Half 2016Mercer Capital
Mercer Capital’s newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
We are pleased to share our thoughts for Fintech in 2018 trying to cover AI to Insurance to ICOs. We hope you find them useful and feel free to share you're thoughts with us as well.
MDEC Fintech Conference - Keynote: Overview of Fintech in 2016iTrain
Managing Partner of Life.SREDA shares key numbers and trends of the Fintech scene for the first half of 2016.
Watch the keynote on youtube here: https://www.youtube.com/watch?v=u31ILlyAfuM
Slava Solodkiy is one of TOP 35 most influence fintech-persons in the world and TOP 100 fintech leaders in Asia.
Interested to get a fintech idea started but don't know how to start? Then join the FREE MDEC Fintech Masterclass on October 3-4. To enter just tell us about your Fintech idea!
Apply here: bit.ly/fintech-master
More information about the complete Fintech Bootcamp: www.itrain.com.my/fintech-bootcamp/
CB Insights Global Fintech Report Q3 2019Jeff Martinez
Q3’19 fintech funding topped $8.9B, a quarterly record when adjusting for Ant Financial’s $14B investment in Q2’ As of Q3, fintech has raised $24.6B in 2019, already surpassing 2017’s annual total. Funding grew on the back of 19 $100M+ rounds worth approximately $4B in Q3’19.
Deals rebounded slightly in Q3’19 but are likely to fall short of 2018’s record as a result of a continued pullback in early stage investing: Fintech deals in Q3’19 grew 6% from Q2'19, but they have dropped in every quarter in 2019 when compared to the same time frame last year. Early stage (seed/angel and Series A) deals fell to an 11 quarter low and funding hit a 7 quarter low.
The US saw deals dip to an 11 quarter low while Asia saw deals spike and nearly surpass the US in Q3’19: The US saw deals dip as a result of a pull back in early stage deals, which also contributed to the overall drop in 2019 global deals through Q3’19. Asia saw deals rebound as China reclaimed the
lead from India as Asia’s top deal hub.
Southeast Asia fintech topped new annual highs: Southeast Asia set a new annual record with $701M raised across 87 deals through Q3’19 . The top 2 deals since 2015 occurred in 2019: a $100M Series B to Singapore based Deserka and a $100M Series C to Vietnam based MoMo.
India and China continued to battle over the title of Asia’s top fintech hub in Q3’19: China saw deals surge to 55 in the quarter, reclaiming the lead from India with 33 deals. India saw $674M in funding, narrowly pulling ahead of China’s $661M.
Challenger banks have raised over $3B in 2019 YTD and Q3’19 saw $1.3B invested a quarterly funding high: Q3’19 saw challenger banks funding bolstered by rounds to unicorns, including NuBank’s $400M Series F, which was the largest reported equity investment to a challenger bank and made
NuBank the highest valued challenger at $10B. Startup focused challenger banks saw competition heat up with deals to Ramp Financial, Mercury, and Stripe, which launched card issuing.
There are 58 VC backed fintech unicorns worth a combined $213.5B: Q3’19 saw 6 new fintech unicorn births (Hippo, Judo, Deposit Solutions, QuintoAndar, Dave , and C2FO), and 3 more have occurred in Q4’19 as of 11/11/19 (Next Insurance, Ebanx , and Riskified ). Other highly valued unicorns continued to raise late stage capital, including NuBank, Gusto, and Stripe, among others, but none signaled an IPO was imminent.
Diving deep into literally millions of interactions and conversations with different networks such as Facebook, Twitter and Instagram, blogs, forums and news sites in order to bring you analytical info about how social media affects different sectors like:Sharing Economy, Banking and Finance, Ecommerce, Telecom and Fintech.
The Evolution of Fintech And What it Means for AdvertisersMSFTAdvertising
SLIDE 1
The Evolution of Fintech And What it Means for Advertisers
By Phil Jones, Analytical Lead - Finance & Insurance
SLIDE 2
2012 was the peak year for Fintech companies founded.
2012 - 281 Fintech companies founded
2014 - surge of Deposits & Lending companies founded
2017 - 10 companies founded
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-dcfs-fintech-by-the-numbers-web.pdf
SLIDE 3
Investment peak in 2016, driven by Deposits & Lending
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-dcfs-fintech-by-the-numbers-web.pdf
SLIDE 4
Will ‘open banking’ shake things up further?
-Forced 9 of the biggest banks to release their data in a secure, standardised form
-Rich data on spending and borrowing can thus be shared with third parties, who can then use the data to create new products
-Consumers can access multiple accounts from competitor banks within one single interface
SLIDE 5
The regulation generated a lot of press…
SLIDE 6
...Which contributed to an increase in searches.
SLIDE 7
Young + Males over-index for Fintech searches.
SLIDE 8
There are more searches on mobile than traditional banking
SLIDE 9
TransferWise & Monzo are the biggest and strongest growing.
SLIDE 10
What’s next for Fintech Banking?
SLIDE 11
There is a unique opportunity to streamline customer journey. Rapid utility switching & instant direct debit.
From “toothbrushes” to ecosystem: we will see fintech-bank soonVladislav Solodkiy
Presentation for the article: http://goo.gl/FeVkKQ.
The next step (and this step will be not about “more money”, but about real evolution of fintech-movement to ecosystem) in fintech will belongs to new generation of “fintech-banks” (maybe, they will be totally separated from traditional banks), which will have Bank-as-service platforms as back-end, and neobanks as front-ends – to tailor all these services for final end-users in unique bundle and user experience.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
Innovate Finance’s 2017 VC FinTech investment landscape provides investors, startups and the wider FinTech ecosystem the data to understand trends and capital flows as the FinTech market evolves. Overall figures suggest that the UK has had its best year on record and was a global leader in terms of capital invested and deal volume, second only to the US.
Investing in fintech: Trends in financial technology for investors and entrep...OurCrowd
Join Zack Miller, Head of the Investor Community at OurCrowd, and Mick Weinstein, VP of Marketing at BIllGuard for an in depth discussion of the recent trends and opportunities in the dynamic financial technology industry. Zack and Mick have both helped build some of the top companies in the space including Seeking Alpha, Covestor, OurCrowd, BillGuard, Lending Club, SigFig and more.
Join us to learn about:
How top investors and entrepreneurs think about the entire fintech ecosystem, from online asset management, to financial content, to consumer finance apps, and crowdfunding.
Which business models are taking hold and their future prospects.
The challenges and opportunities for investing and building a valuable company in the financial space.
Mercer Capital's Value Focus: FinTech Industry | Second Half 2016Mercer Capital
Mercer Capital’s newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
We are pleased to share our thoughts for Fintech in 2018 trying to cover AI to Insurance to ICOs. We hope you find them useful and feel free to share you're thoughts with us as well.
MDEC Fintech Conference - Keynote: Overview of Fintech in 2016iTrain
Managing Partner of Life.SREDA shares key numbers and trends of the Fintech scene for the first half of 2016.
Watch the keynote on youtube here: https://www.youtube.com/watch?v=u31ILlyAfuM
Slava Solodkiy is one of TOP 35 most influence fintech-persons in the world and TOP 100 fintech leaders in Asia.
Interested to get a fintech idea started but don't know how to start? Then join the FREE MDEC Fintech Masterclass on October 3-4. To enter just tell us about your Fintech idea!
Apply here: bit.ly/fintech-master
More information about the complete Fintech Bootcamp: www.itrain.com.my/fintech-bootcamp/
H1 2015 Venture Capital Financing in CanadaAmir Bashir
Developed a deep-dive summary of how venture capital was distributed across Canada in H1 2015. The report analyzed vc financing by location, industry and technology trend. I developed this report because I found publicly available information to be too broad for the insights I was looking for. Hopefully this will be more helpful to the community.
This slide was created by Malaysia Venture Capital (MAVCAP), an organisation formed by the Malaysian government in 2001 to help nurture infant ICT companies into big thriving businesses.
State of South East Asia (SEA) Technology Startup Ecosystem 2016ERIC TAN
Get in touch at rictan0@gmail.com // www.rictan0.com
Private tech market has been experiencing far more superior growth compared to the public market as a whole. This document encapsulates capital flows in SEA tech scene, exits landscape for investors/founders and sectors to watch.
In the appendix, you will find a list of 110 active tech investors in SEA. More direct access here: https://rictan0.com/2017/02/11/resources-110-active-investors-in-south-east-asia-tech-scene-in-2016/
For Sector Deep Dive and Startup Profiles, please reach out to rictan0@gmail.com
Also would love to hear from founders who are interested to learn about the investment/funding landscape.
Tracxn Research Ad Tech Landscape, October 2016Tracxn
Investments in the adtech industry are driven by mobile, digital video, cross-screen advertising and programmatic buying targeting specific sectors or audience groups.
What does the rest of 2016 hold for innovation companies? In a mid-year update on State of the Markets, the SVB Analytics team analyzed data from the first half of 2016 to identify key trends impacting SVB's clients.
The IPO Window Reopens:
We finally saw the IPO window crack open in Q3 2016, as proceeds from technology M&A are leaving investors flush with cash to reinvest and driving demand for IPOs and follow-on offerings.
In this third-quarter update on State of the Markets, my team analyzed investment and exit data to identify key trends impacting clients:
1. The number of IPOs exceeded private IPOs for the first time since Q2 2013, as crossover investors’ interest in large pre-IPO financings dropped off.
2. In the U.S., the pace of unicorn exits in Q3 exceeded new entrants.
3. After plummeting in the first half of 2016, values of publicly traded unicorns showed signs of recovery.
Learn more by reading the new State of the Markets report. As with any review of the markets, conditions can turn quickly. We are, however, confident that the fundamentals driving innovation will be strong through the end of 2016.
What does the rest of 2016 hold for the innovation economy? SVB Analytics' State of the Markets Report provides a summary of key market indicators impacting the innovation economy, including venture capital funding and valuation trends, crossover investor activity, and what’s ahead for the second half of 2016.
Startup Investments: The evolution of the MENA ecosystem in 2016 [Report] Wamda Research Lab
2016 was a booming year for investments, with startups collecting over $815 million. Two regional companies, Careem and Souq.com, achieved the coveted ‘unicorn’ valuation, making them the first companies in the region to do so.
Cash May Not Be King, but It's Still Royalty. ATMaaS for 350+ digital banks and e-wallets (crypto-, digital identity projects, border control, airport&hotel check-in, even offline-to-online voting on elections) by Nansen.ID. More pics&images here: https://l.Nansen.id/smartATM
Revolut mafia is bigger than you think: https://www.linkedin.com/pulse/revolut-mafia-just-surpassed-itself-vladislav-solodkiy/ In just five years, 102 Revolut alumni-led startups, some of which have former Revolut employees in C-level positions, have collectively secured a remarkable $2.2 billion in funding from 184 venture capitalists. Among these, there are 67 startups founded by Revolut alumni, amassing an impressive $451 million in total funding from 152 venture capitalists.
We’re growing our compliance team, Ocean’s 11 style. Are you in? Ping us via goodguys@ariv.al - compliance is sexy, and Arival Bank and A.ID knows it: http://bit.ly/2xBj5Qk
Presentation for Government Blockchain Association l San Juan, Puerto Rico l Piloto 151, 7'June 2018
(c) Vladislav Solodkiy, A.ID
www.followthemoney.id
Holvi, Seed, CivilisedBank, Tide, Qonto, Azlo, Penta, Arival bank
Neobanks or fintechs for retail clients, which have launched business accounts recently: TransferWise, Revolut, StarlingBank, N26
(c) Life.SREDA VC
Initial Country Offering: How To Build Government-In-The-Cloud or Country-As-...Vladislav Solodkiy
Overview of blockchain-based GovTech startups and trends by Life.SREDA VC, The BB Fund and Arival bank. Article on CoinTelehraph: https://goo.gl/ea6reR
BaaS-platforms and open APIs in fintech l bank-as-a-service.comVladislav Solodkiy
What is bank-as-a-service? And why it is so necessary for Asia-Pacific region? Download as pdf in English, Chinese, Korean and Japanese on www.bank-as-a-service.com. Read more on http://www.forbes.com/sites/vladislavsolodkiy/2016/08/03/what-asian-banks-can-learn-from-amazon-about-working-for-fintech/
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
2. Life.SREDA I Life.SREDA II Asia
Banking on
Blockchain Fund
Moscow Singapore London
2012 2015
2016
2014
13 investments
(US, UK, Germany, CIS)
A new venture fund dedicated to
investing in the blockchain ecosystem
7 successful exits 8investments
(South East Asia)
Research & Vision
Influelce on the whole infustry trough
own blogs fintechranking.com and
semi-anual Fintech research “Money of the Future”
www.www.
fintech-research
.com .com
Bank-as-a-srevice and open API playAccelerator in Singapore
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is very necessary for the future
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Life.SREDA is supporting a strategic fintech
project: open API Pan-Asian platform BAASIS
Life.SREDA VC Executive summary
3. Global fintech market in 2016
Banks and regulators in Fintech in 2016
Insurtech and Blockchain development
Asian Fintech in 2016
Fintech trends and predictions 2017
4. This time has come:
Investments into FinTech are not growing globally
and the market has almost reached
its saturation point in 2016
5. Investments in fintech annually ($B)
Amount of financing deals (#) Region distribution of funding (%) Amount of financing deals
47
38
USA
Asia
Other
8
8
2,5 2,9
4,4
12,3
20,3
23,6
19,1
0,3 0,4
2,2 2,5
1,5
2,9
5,5
6,8
5,8
14,5
6,1
13,0
VC Backed fintech investments
Other fintech investment
+16%
-6%
2011 2012 2013 2014 2015 2016
Note/source:Source:CapitalIQ,FTPartners,Pitchbook,ThePulseofFintech,
GlobalAnalysisofFintechVentureFunding,KPMGInternationalandCBInsights(dataprovidedbyCBInsights)May25th,2016.
4,5
Ant Financial
+36% +7%
2015Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2016
308
366
410
398
442 428
378
343
The overall funding is down
by 6%, however, with ANT
Financial the overall funding
is up by 16%;
Without Ant Financial, Global
funding is slightly decreased,
but Asian funding is up
sharply in 2016, including
mega deals, it is almost 50%
of all funding;
Financing traction has lost
its momentum, just +6%
growth of financing deals
yoy compared to +36%
growth in 14’-15’ yoy;
Asian share of companies in
financing is growing steadily,
taking the dominance over
the market;
2016 was the first year when investments
into Fintech didn’t grow
EU
Fintech 1091
AI related 658
EdTech 415
AdTech 343
Clean / Green Tech 213
AR/VR 171
Robotics 95
RegTech 89
Wearable Tech 85
Ag Tech 68
6. However Fintech is still #1 VC industry with 23% share
in Q4 2016 and it’s growing
$109B
$140B
$128B
$12.3B
$20.3B
$23.6B
201620152014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
19,4
(88,2%)
25,1
(89,5%)
2,6
(11,8%)
3,0
(10,5%)
2,7
(10,4%)
4,1
(12,3%)
4,1
(12,1%)
6,1
(13,8%)
23,3
(89,6%)
29,0
(87,7%)
29,9
(87,9%)
37
(86,2%) 23,4
(77,3%)
29,6
(90,5%)
29,6
(87,1%)
36,7
(81,6%)
20,6
(79,2%) 17,5
(76,1%)
in total funding
from 2015-9%
Global investments, $B
Fintech investments, $B
of growth
of fintech share
in 2016
+5%
7,0
(22,7%)
3,1
(9,5%)
4,4
(12,9%)
8,3
(18,4%)
5,4
(20,8%) 5,5
(23,9%)
Global financing activity is down.
VC deals activity declined 24% YOY,
and financing activity is down by 9%
However, looking deeper into distribution, investments into
financial technologies gained its scale within
VC investments,
grew to almost 23% (+5% rise) since 2015
7. Asian (Chinese) mega deals dominate
the global fintech market
Payments
Lending
Insurance
Fintech
for SME
Banking
Big Data
Financial
management
North America
14 companies
$2.25B
Europe
3 companies
$648M
South America
2 companies
$262M
Asia
11 companies
$8.7B
Top 30 companies made
>50%
of all fintech funding
Lending
prevailed in 2016
with 12 deals out of 30
gone to this field
While North America saw
the biggest number of deals,
Asia leads
a total funding volume
Blockchain
has not entered the TOP-30
largest deals list yet
– looking for 2017
Ant Financial $4,5B B
Lu.com $1,2B B
JD Finance $1B n/a
Qufenqi $449M Late
Oscar Insurance $400M C
Ion Investment $400M PE
U51 $310M C
China UnionPay $296M n/a
CommonBond $275M Late
Fenqile $235M D
Mosaic $220M Seed
HeTai Insurance $218M Seed
Payoneer $180M n/a
WeLab $160M B
Clover Health $160M C
Weidai $153M C
Lendup $150M B
Stripe $150M n/a
Hero FinCorp $150M n/a
EDM Group $145M n/a
Nubank $132M C-D
XP Investimos $130M PE
PaySimple $115M n/a
MetroMile $103M D
Kreditech $103M C
Betterment $100M E
Fractal Analyst $100M n/a
Affirm $100M D
Avalara $96M n/a
Ygrene Fund $95M n/a
Wealth
management
8. Interesting top investment deals in 2016
Note/source: Source: Capital IQ, Mattermark, Dow Jones, Life.SREDA VC analysis
Lu: Wealth management solutions
Lfex: Financial advisory services
Also offers financial consulting, desing
services, financial application develop-
ment and market research, data analysis
Products
Postponed its IPO to 2017, which
could, which could raise as much as
$5B in proceeds for the Company
01/2016
Lufax announced it had raised $1.2B in
Series B round;
Valuation is $18.5B, 10B higher than
previous round;
Ping an Assurance have remained
the largest investors in Lufax;
Traction
Ji Kuisheng
Shanghai, ChinaHeadquarters
Founded
CEO
$1.2BFunding
Lufax
2012
Alipay - China’s most popular online
payment service;
Micro-loans program and Alibaba’s
digital bank, MyBank.
Sesame credit scoring system
Products
450M users;
Ant Financial is to go public soon;
58% of all online transactions
happening in China is done via Alipay.
04/2016,
completed its Series B at $4.5B;
Last year’s undisclosed Series A
valued the firm at $45-50B;
Ant Financial & Alibaba has invested
$680M in Paytm, acquiring 40% stake
in the venture
Traction
Jack Ma
Hangzhoud, ChinaHeadquarters
Founded
CEO
$4.5BFunding
Ant Financial
2004
Provides health insurance through its
online and mobile platform for
comparing insurance plans
Search, compare, and purchase Oscar
insurance plans, free check ups, etc.
Products
Currently covering over 40k health
providers, 70 hospitals
Boosted enrollment by almost 300% -
from 40k to 150k customers in one year
02/2016
“Oscar” announced it raised $400M
in a financing round led by Fidelity
Investments
Company valuation is $2.7B
Previous investors:
Google, Khosla, General catalyst
Traction
Josh Kushener
New York, USAHeadquarters
Founded
CEO
$400MFunding
Oscar Insurance
2013
A no-fee MasterCard Platinum credit
card managed by mobile phone;
Real-time spending analysis, personal-
ized categories for tracking payments
and ability to lock the card from the app.
Products
Has had 7 million applications, with
500,000 applications currently on the
waiting list;
75 million purchases have been made
via the Nubank card
12/2016
Nubank had raised $80M +$52M in a
Series D funding led by DST Global +
debt;
Nubank was previously valued at
$500M after it raised $52m in Round C
in Jan’ 2016.
Traction
Daviv Veles
Sao Paulo, BrazilHeadquarters
Founded
CEO
$132MFunding
Nubank
2013
Lending Payments Insurance Banking
9. 2016 didn't show notable M&A deals and IPOs in Fintech, except Fidor acquisition by BPCE and Payleven acquisition by SumUp
Only few traditional payment companies and B2B software developers went to IPO, not fintech startups
However FinTech industry expects several large IPOs in 2017 both in US and Asia
The Largest M&As and IPOs
Note/source: Source: Capital IQ, FT Partners, Pitchbook, The Pulse of Fintech, Q1 2016, Global Analysis of Fintech Venture Funding,
KPMG International and CB Insights (data provided by CB Insights) May 25th, 2016.
Key M&As Key IPOs
n/a
n/a
n/a
$130M
n/a
$130M
n/a
n/a
Banking
mPOS
Banking
Lending
Payments
Payments
Insurance
Lending
Company Date
10/28/16 NASDAQ
NASDAQ
NYSE
NASDAQ
BATS
Copenhagen
$146M 63%
39%
81%
21%
76%
-18%
$133M
$238M
$101M
$253M
$2400M
10/28/16
10/28/16
10/28/16
10/28/16
10/28/16
Volume Exchange Total Return
Key message
10. Fintech unicorns: 4 Chinese giants are in TOP5 in 2016
25 fintech unicorns globally valued at $150B in aggregate value
Fintech Unicorns Valuation
2015
24 unicorns
$112B Total valuation
2016
$150B Total valuation [+$38B]
25 unicorns
USA AsiaEurope
ZhongAn
Online
8,0
Kabbage
1
FundingCircle
1
Jimubox
1
Gusto
1
ChinaRapidFinance
1
Lakala.com
1,6
Rong360
1,6
Prosper
Marketplace
1,9
Avant
2,0
GreenSky
2,0
3,6
PayTM
1,9
4,8
Adyen
2,3
Mozido
2,4
CreditKarma
3,5
SoFi
4,0
Transferwise
1,1
new
Lufax
18,5
10,0
AntFinancial
60,0
45,0
Zenefits
4,5
2,0
JD.com
7,4
Stripe
9,2
5,0
Qufenqi
1
5,9
Klarna
1,4
2,3
Oscar
1,4
2,7
123456789101112131415161719212224 2325 20 18
Disclaimer: Public companies are not included; only $1B>;
no SaaS, Cloud, enterprise software, hardware etc; only FinTech
accordiing to Life.SREDA
$B
11. Lending and Payments startups still dominate
the FinTech market, accounting for more than 50% of the industry
2015
19
32
18
11
4
4
9
9
3
24
20 20
15
12
7
8
13
17
13
8
7
2
26
23
Payments
Blockchain
Banking*
15
Capital Markets /
Wealth
Management
12
Financial
Mangement
8
7
Insurance
10
Fintech for SME*
25
20152016 2016
Distribution of
financing deals
(by # of deals, %)
Distribution of
M&A deals
(by # of deals, %)
The shares of sectors by # of M&A deals
remained stable through 2015-2016, with
Payments being the most active area.
The distribution of # of financing deal have
changed significantly from 2015 to 2016.
Payments is in the top, followed by Lending
*
Fintech for SME – accounting,
supply chains, security & regtech
*
Banking – e-Wallets,
Bank infrastructure startups
Lending
13. ~30% banks
invested via their own
venture instruments
– VCs, accelerators, incubators
Banks are getting more and more active in FinTech
Barclays, Goldman, CITI, Santander and BBVA are leading the show
Major Bank Investments to VC-backed Fintech Companies
-2015 -2016
more companies
funded by banks
in 2016
+61%
Top South-Asian banks are starting to follow
Chinese/HK/Japanese/Korean megabanks
with playing active role in FinTech: DBS, OCBC, UOB, Siam Commer-
cial Bank, Mandiri, RHB, MayBank, CIMB, KasikornBank and others
laucnehd a bunch of initiatives related to fintech
Leaders are
mainly from developed
fintech regions
US, UK, Europe.
Note/source:Source:Mattermark,
Life.SREDAVCanalysis,Crunchb
23
15
13
8
3 3 3 3 3
2 2
1 1 1 1 1 1 1
17
9
7
6
4
6 6
5 5 5
4 4 4 4 4
3 3 3
2
1 1
2
1 1 1 1
2
Barclays
GoldmanSachs
CitiGroup
Santander
BBVA
WellsFargo
Commerzbank
MorganStanley
HSBC
CreditSuisse
BNPParibas
MitsubishiUFJ
Mizuho
JPMorgan
CapitalOne
China
DevelopmentBank
UBS
Sberbank
China
ConstructionBank
CreditAgricole
SocieteGenerale
ICICI
SiamCommercialBank
OCBC
MandiriBank
14. however partnerships in 2016 seemed to be safer
and more convenient for banks
Banks’ partnerships with financial technology start-ups
are developing,
Enable Citi card members to use their
Citi Cards with PayPal online, in-app
and in stores
P2P payments, provides making
payments via the social networks
Offering investing advice and
data-driven recommendations
P2P-lending. Enables local SMEs to
borrow short-term business loans
Study and test blockchain technology
to enable payment transactions
Provides direct financing to SMEs
To contribute to the acceleration of
the rollout of its digital strategy
Online wealth management
platform
Automotive pricing and information
website for car buyers and dealers
Offering its clients access to equity
crowdfunding opportunities
Use Fincast to advise customers on
the types of financial products they
need to meet their investment goals
To offer a TD and Westpac
branded spending app
An extensive interest was shown
by banks and financial institutions
partnering with robo-advisors,
digital wealth managers;
In addition, there is a growing
tendency by banks to partner with
crowdfunding companies
(Santander, UOB, Belfius Bank, Alfa
Bank, etc);
Asian banks are widely partnering
with Fintech accelerators in order
to pilot new products with fintechs
residents;
Many pilots were initiated in 2016
between blockchain companies
and banks worldwide
(SG, SCB, Barclays, etc)
15. Venture/debt investments and acquisitions from banks
Q4 D N/A
Q4 A $8,3M
Q3 A $8,3M
Q3 undisclosed
Q2 A $14M
Q3 $19.67M
Q2 $33MD
Q2 $56M
Q2 D $75M
As mentioned earlier,
partnerships and investments are
closely linked, however,
investments primarily focused on
realizing returns;
Investments generally go from
venture instruments of banks:
VCs, accelerators, debts financing;
Asian banks are getting involved
and investing through
the partnerships with accelerators
(StartupBootCamp Fintech, Nest, etc.)
Q4 $100M
16. APAC
South Korea permits for
banks to invest in Fintechs
Currently financial laws, financial institutions are
allowed to buy stakes only from companies in the
same business sector. The FSC have included
fintech companies in the scope of the financial
industry.
#banks #2016
SouthKorea
MAS establishes
a dedicated Fintech Office
MAS and the National Research Foundation opened
a dedicated FinTech Office to serve as a one-stop
virtual entity for all FinTech matters and to promote
Singapore as a FinTech hub.
#opportunity
Singapore
MAS established
a regulatory sandbox.
To allow more flexible application of the regula-
tions, while maintaining safeguards to protect
consumers and the wider financial system.
Singapore
Financial Sector Technology
& Innovation scheme
MAS committed $225M ($166.48M USD) under the
“FSTI” scheme to provide support for the creation of
a vibrant ecosystem for innovation.
Singapore
6 P2P Lending Licenses
Granted in Malaysia
Six P2P lending licenses were granted in Malaysia
recently, making them the first authorized platforms
in the ASEAN region.
#p2p lending #license #2016
SouthKoreaMalaysia
Korea has launched
a platform for banks
The platform allows financial institutions to build
services that automatically populate financial
information for new customers.
#banking #2016
HongKong
Hong Kong to launch
banking fintech 'sandbox'
HongKong
Hong Kong establishes
a Facilitation Office
HK Monetary Authority established the FinTech
Facilitation Office to facilitate the healthy develop-
ment of the FinTech ecosystem in Hong Kong and
to promote Hong Kong as a FinTech hub in Asia.
#opportunity #2016
P2P Firms Regulation
in Indonesia
The draft regulation proposed that a Fintech
company is required to have Rp. 2 billion in working
capital and is required to show Rp. 2.5 billion
applying for a business license.
To help maintain Hong Kong's competitiveness as
a financial hub by supporting the development of
fintech in the banking sector
Indonesia
Malaysia issues the Fintech
Regulatory Sandbox
To experiment with FinTech solutions in a live
controlled environment which is accompanied by
the appropriate safeguards
#opportunity
Malaysia
Establishing an infrastructure
Regulation activities in the APAC and Asia
Most of activities are focused on establishing
an early stage infrastructure and development
Source:Fintechranking.com
Key message
17. EMEA
Regulation activities in Europe
Most of activities are focused on controlling
and regulation of existing regimes
UK sets out open banking API
framework
Aimed for the creation of an open banking standard
that makes it easy to share and use financial data,
arguing that the move would improve choice for
customers, promote competition;
#regulation #bank #UK
OpenBankingThe cohort of the regulatory
sandbox closed
69 firms from a diverse range of sectors, geogra-
phies and sizes have been accepted. 24 applications
met the sandbox eligibility criteria and were
accepted to develop towards testing
#regulation #opportunities #UK
Sandbox
A specially created
“Fintech” licence
Plans to encourage crowdfunding and the market
testing of new technologies. FinTech firms, with a
minimum of $300k in capital, are allowed to accept
funds from clients, up to $99m, which remain
outside the depositor protection scheme and are
not subject to the same regulations, auditing and the
capital requirements applied to banks.
#Implementation #Switzerland #EU #2016
Banking
Standardized mobile and
internet payments (PSD2) in EU
PSD2 enables bank customers, both consumers and
businesses, to use third-party providers to manage
their finances. In the near future, customers may be
using Facebook or Google to pay bills, making P2P
transfers and analyse spending, while still having
money their safely placed in current bank account.
#Announcement #Payments #Global #2017
Payments
Solvency II is a programme
for insurance regime
It introduced a new, harmonised EU-wide insurance
regulatory regime. The Solvency II programme is
divided into three areas, known as pillars: Financial
Requirements (Capital Requirement and etc),
Governance & Supervision (Own Risk & Solvency
Assessment) and Reporting & Disclosure (Insurers
required to publish details of the risks facing them).
#Implementation #Insurance #EU #2016
Insurance
Controlling & Regulation
Source:Fintechranking.com
Introducing a European
Standard for e-Invoicing
The European Commission announced the
e-invoicing directive require all 28 EU member
states to use specific e-invoicing standards for all
B2G e-invoices by November 27, 2018. Europe’s
current e-invoicing adoption rate of 24 percent is
expected to rise to 95 percent by 2024 and accrue
savings of approximately 64.5 billion euros ($72
billion) per year for businesses.
#Announcement #e-invoicing #EU #2018
e-Invoicing
Key message
18. USA
In May, the third and final
part of the 2012 JOBS Act,
Regulation Crowdfunding,
went into effect
Regulation Crowdfunding allows any American
startup or small business to raise up to $1 million
from friends, family, and followers on debt and
equity crowdfunding platforms registered with the
Securities & Exchange Commission (SEC).
During the course of the year:
21 debt and equity crowdfunding platforms
were launched and one, Ufunding Portal, shut
down by the SEC because it seemed to be
missing some of the statutory requirements
required of a funding portal.
Investors committed $19 million to the 186
campaigns and transfered $17.9 million to the 79
funded campaigns.
Over 21,000 individual investments were
recorded for 2016. The average investment was
$833, and the average number of investors in a
funded campaign was 331
The average valuation for a funded campaign
was $5.3 million.
#crowdinvesting #results #USA #2016
Crowdfunding
Financial technology
start-ups to get a license
to bank
The Office of the Comptroller of the Currency are
planning to create a new type of banking license (for
example, trust banks and credit card banks) that will
allow upstart financial technology companies to
expand more quickly across the country. A special
purpose national bank must conduct at least one of
the following functions: fiduciary activities, receiving
deposits or lending money.
The licenses from the Office of the Comptroller of
the Currency, which oversees many national banks,
will be available to companies like Square and
Lending Club that accept deposits, facilitate
electronic payments or lend money.
Many technology firms have been pushing for some
sort of new regulatory system that would allow
them to cut through the patchwork of state and
federal laws that govern financial activities and make
it hard to expand nationally.
The OCC acknowledged that Fintech companies’
business models vary widely and that therefore each
application should be reviewed individually.
#p2p #license #USA #2016
Banking
Shaping certain sectors
Regulation activities in the US
Most of activities are focused on shaping
certain sectors within an industry
Source: Fintechranking.com
Key message
20. Asian market is the main driver for the growth
of global Fintech industry in 2016
Note/source: Source: Mattermark, Dow Jones, Life.SREDA VC analysis
The total invested capital
in Asian Fintech
continued to grow in 2016,
despite few mega deals
that made >60% of the 2016
total;
In Asia, almost 70% of dollar
investments in 2016 went to
Chinese companies;
257 deals are counted by
Life.SREDA
0,5
1,5
6,3
9,8
2013 2014 2015 2016
Investments in Asian Fintech by year ($B)
257
DEALS
221
DEALS
156
DEALS
Ant Financial
$4,5B
Zhong An
$0,92B
21. Asian Top 7 financing deals in 2016
Key message Capital invested in 7 companies accounts for 78% of all invested capital in Asia
Note/source: Source: DJ PRO, CB Insights, Life.SREDA VC analysis, Capital IQ
=$7,6B
=78%
Company Sector Amount Stage Country
invested in top
7 companies
of all capital
invested in Asia
Payments $4500M Series B China
Lending $1200M Series B China
Lending $1000M N/A China
Lending $449M Late China
Lending $160M Series B HK
Lending $153M Series C China
Lending $150M N/a India
22. Regtech
Diversity of the market: while China dominate Asian Fintech
market by amount of funding, India is #1 by number
of Fintech deals. Different fintech verticals started to grow.
Note/source: Source: DJ PRO, CB Insights, Life.SREDA VC analysis, Capital IQ
Investments in Asian Fintech by sector
(by number of companies funded, % )
Lending e-Wallets Big Data Insurance
Crowdfuning /investing
Payments Blockchain For SME Remittance
Investments PFM/PFP
Banking
21
13
13 6
6 5
5
5
4
4
3
8
7
Lending, Payments, Wealth management
and Ewallets are the top 4 sectors
that made almost 50% of all investments
in Asia.
India, China and Singapore
are the top 3 countries, where
more than 60% of all fintech
investments went in 2016.
Interestingly, Pakistan, Laos, Myanmar,
Bangladesh, Vietnam and Cambodia
together have 8% of the total Fintech
funded companies in 2016.
India
35%
5%
7%
Japan
6%
China
23%
Singapore
15%
Malaysia
2%
Indonesia
4%
Philippines
3%
Korea
Others
Investments in Asian Fintech by country
(by number of companies funded, %)
23. Note/source:Source:CapitalIQ,Mattermark,DowJones,Life.SREDAVCanalysis
Key observations
25% of all deals in Asia are at series B, C
and above ($15M+) and mainly made
in China and India.
Cheque size # of deals Origination of startups,% Top sectors with such cheque
The top 45 biggest cheques
mostly went to Indian and
Chinese lending and payment
companies;
Lending, Payments, Insurance
received 80% of the top largest
45 deals.
The second highest cheques
mostly went to Indian startups
working on payments and big
data;
Companies are mixed, Lending
and Big Data startups dominate
The third highest cheques
mostly went to India and
Singapore, however, very mixed
and saturated from everywhere;
Wealth management and
payments startups dominate,
but holding only 35% of all
investments
Disclaimer: almost 25% of companies are not included, due to undisclosed amounts
and very low cheque sizes from accelerators and incubators
$15M – $4.5B 45
Lending Insurance
Payments Other
39% 23% 17% 21%
India
China
Japan
Others
44
42
8
6
$3M – $15M 52
Other
Lending Insurance
17% 57%14% 12%
Big Data
India
Singapore
Indonesia
Others
46
16
11
27
$100K – $3M 87
Other
Payments
Lending
Wealth Management
20% 56%14% 10%
India
Singapore
Thailand
Indonesia
Others
42
26
8
8
16
24. M-DAQ
Singapore
$82,5M
MatchMove
Singapore
$30M
GroupLease
Thailand
$30M
ItBit
Singapore
$25M
Fastacash
Singapore
$15M
Investments in SEA Fintech dropped by 36%
Total investments and deals number
TOP 5 DEALS
2015 2016
$245M
$157M
deals57 58
20162015
Despite the decline in
funding amount, the
amount of deals remained
on the same level;
Singapore leads in invest-
ment and deals amounts,
remains to be a region’s
leader;
Philippines and Indonesia
are following the trend,
together hold 1/5 of all
companies funded;
Cheques are down in 2016
– growth barriers; investors
are being careful with
targets.
By geography, number of companies funded
Indonesia
Thailand
Vietnam
Others
60
9
9
4
9
62%
12%
8%
6%
4%
8%
11
Philippines
Singapore
2015
2016
Momo
Vietnam
$28M
Quoine
Singapore
$20M
Omise
Thailand $17.5M
Funding Societies
Singapore
$12.6M
MC Payment
Singapore
$8M
25. Total Fintech
companies
Funded
in 2016 (#)
Funded
in 2016 ($M)
APAC #of deals
Share in Asia
APAC
APAC $$$
of deals
Share in Asia
Singapore’s fintech ecosystem by 1/2017
Industry is highly fragmented, all the companies are young and growing,
no big players / dominant yet
Key message
Payments / Gateway Exchange
mPOS / POS / Developers Payments Blockchain
Payments $40.6M
Big Data /
scoring
$4.5M Remittances
/ for SME
$39.0M mBanking /
e-Wallets
$40.6M PFM /
comparison
$30.7M Crowdfunding
/ Crowdinvesting
$13.1M Insurance $1M
Blockchain / crypto $35.6M Lending $4.8M Investment / wealth mng $47.6M
SME loans
Invoice fin / factoring Personal loans
120 32 $81.5M
Total Funding
‘13 – ‘16
$220.3M 4822%
Largest segment Fintech deals
in Asia ’16
Investments /
wealth
management ~257
27. Blockchain market
is getting more mature, however it’s still at very early stage (prove-of-conept)
Number of rounds and Amount of capital
invested in blockchain
Major Acquisitions in 2016
2012 2013 2014 2015 2016
$3B $83B
$344B
$458B $542B
12
31
54
99
undisclosed
undisclosed
undisclosed
undisclosed
undisclosed
undisclosed
119
There is a decreasing
tendency towards launching
new blockchain companies:
2016 169
2015 221
2014 233
new companies launched
There is an
increase in investment rounds:
2016 119
2015 99
2014 54
rounds
There is an even
sharper increase in funding:
2016 $542M
2015 $458M
2014 $344M
invested
28. Blockchain market. Investment traction.
Rise of sustainable businesses that raise a large investments
In 2016, investments in later stages grew significantly,
seed investments decreased in overall funding
from 69% in 2015 to 57% in 2016
Number of rounds by stage (%) Funding by stage ($M)
2012 2013 2014 2015 2016
100
57
22
13
72
14
12
2
71
9
17
69
12
15
Seed
Series A
Series B
Series C+
Other
2012 2013 2014 2015 2016
Seed
Early
Late
53
306
60
33
203
59
8
9
97
50
Amount of funding to later stage companies grew
significantly,shows that seed companies are
showing solid results and get big funding after
29. Blockchain market. VC investment traction.
Cheques are up due to rise of later stage investments
Average deal sizes and tickets to equity grew in 2016;
companies that reach later stage rounds receive
huge equity investments.
Average cheque size ($M) Funnel view of sector
Today, the market consists of <800 blockchain
companies, 30% (=225) have received any type of
funding, 19% of those (=43) ave reached round A,
16% of those (=16) have reached round B.
2012
1,3 1,7 0,7
7,9
17
19,9
9,4
55
1,4
9
12,4
2013
Seed
Round A
Round B
2014 2015 2016 Founded Series A Series B Late M&A, IPO
~ 775
companies
100%
29%
19%
16% 29% 8 companies
Note/source: Source: Crunchbase, CB insights, Life.SREDA analysis, Tracxn report
30. Blockchain market. Potential and geo
Amount of blockchain related
companies, %
Top funded business models Blockchain companies by geography
Finance
Government
Rightsonownership
Consumergoods
Identity
Healthcare
ArtandEntertainment
Securities
Others
22
3
6
88
1111
14
17
Financial
services
Technology
Enterprise
Consumer
55%29%
13%
2%
11%
Europe
North
America
48%
30%
Global
11%
Others
>80 cases of blockchain usage
revealed main fields and scenarios of
implementation – Financial services,
optimization
55% of capital went to financial services
related blockchain startups;
North America is dominated
Blockchain potential by sectors and geo Geo and business models
Finance
Note/source:Source:Crunchbase,CBinsights,Life.SREDAanalysis,Tracxnreport,Mckinseyreport
31. Top 23 transactions make more than 85% of value in 2016
Top 23 Blockchain financing transactions
Other countries
13%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Circle
Ripple
Blockstream
Bitfury
Bitflyer
Quoine
Coibase
Gem
Simplex
Symbiont
Tech Bureau
Zaif
Lisk
BlockStack
Elliptic
Bitt
Chronicled
Equibit
OB1
OpenBazaar
Bitpesa
Streami
Bitso
Money transfer service using blockchain
Internet protocol for remittance, transfer of any currency
Technology to extend bitcoin’s functionality into things like stock trades or contracts
Bitcoin blockchain security and infrastructure provider
Japanese bitcoin exchange
Trading platform for margin and algo trading
Open Source cryptographic protocol for bitcoin usage
Developer of API platform that simplifies integrating bitcoin into apps and services
Enabling crypto currency businesses to accept credit cards with zero Chargeback risk
A platform that allows financial market participants
to create programmable versions of traditional securities
IT tech lab
Bitcoin exchange
Platform for decentralized applications written in Javascript
Developer platform for app
Digital currency services
A global asset exchange with a core focus on security
Open system of authenticity and transfer of assets
Blockchain services for enterprises, voting
Trading platform
Network of buyers and sellers to sell their goods and services directly
Remittance platform with bitcoin for payments
Blockchain based solutions for remittances
Mexican Bitcoin exchange
$110M
$90.5M
$76M
$110M
$32M
$22M
$117M
$10.4M
$8.4M
$8.3M
$6.5M
$6.7M
$5.7M
$5M
$7M
$5.5M
$3.4M
$3M
$3M
$4M
$3.6M
$2M
$1.9M
$60M
$55M
$55M
$30M
$27M
$20M
$10.5M
$7.1M
$7M
$7M
$6.5M
$6.2M
$5.7M
$5M
$5M
$4M
$3,4M
$3M
$3M
$3M
$2.5M
$2M
$1.8M
US
US
Canada
US
Japan
Singapore
US
US
Israel
US
Japan
Japan
Germany
Philippines
UK
NZ
US
Canada
US
US
Kenya
Korea
Mexico
Remittance
Remittance
Bitcoin
Security
Exchange
Finance
Info, bitcoin
Developers
Payments
Software
Developers
Finance
Developers
Banking
Bitcoin
Payments
Hardware
Finance
E-commerce
Consumers
Remittance
Blockchain
Exchange
Top cheques are
not geographically linked,
the market is competitive
and saturating globally;
THE TOP
DEALS
North America
43%
35%
Asia
Europe
9%
The top sectors are
predominantly in
finance and technological
solutions (Blockstream,
Bitfury, etc)
# Name Brief Total Last Round Country Sector
Key message
32. The Top 7 Cryptocurrencies All Gained in 2016
Selected Bitcoin market moving events in 2016
Bitcoin Price
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
400
600
800
1000
$
Ether Price
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
10
20
30
$
Ripple Price
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0,004
0,006
0,008
0,01
$
Bitcoin $16,165,188,966 $1000.39 16,158,887 BTC
Ethereum $1,005,680,640 $11.32 88,808,880 ETH
Ripple $233,841,026 $0.006312 37,044,533,660 XRP*
Litecoin $187,455,912 $3.77 49,755,256 LTC
Monero $172,290,250 $12.37 13,932,352 XMR
Dash $120,005,666 $16.91 7,095,637 DASH
Ethereum $108,413,703 $1.22 88,767,647 ETC
Classic
Name Market cap Price ($ USD) Available Supply
Bitcoin
– global circumstances such as
devaluation of the Chinese yuan,
the UK's decision to leave the EU,
Trump presidency all led to
support of prices and trading
volume grow;
Ethereum
– more than 2,000% increase
over the first six months of the
year and a nearly 300% increase
for the calendar year. The most
significant factors in the
instability of the ether price were
the DAO hack
Ripple
– did show significant potential
for growth and currently has the
second highest market capital-
ization among cryptocurrencies.
The largest spike in September
followed funding from Standard
Chartered and Siam Capital.
33. Number of rounds (#) and amount of capital
invested in Insurance quarterly ($B)
78 82
125
157
Insurtech market decreased by 34%
in 2016, while the number of deals
increased by 25%
Q1
78 37
110 56 114
311
1727
198
124
189
384
210
390
190
280
790
Q2 Q3
2013 2014 2015 2016
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Today, the market consists of <1400
insurance tech companies, the launching
tendency is decreasing, almost 300 companies
founded in 2015, 40% less in 2016
In 2015, the pike was mainly because of a large
Chinese deal – Zhong An, that made almost
40% of the whole year’s funding amount
There is an increase in investment rounds:
in 2014 – 54 rounds;
in 2015 – 125 rounds;
in 2016 – 157 rounds.
-31% +165%
-34%+236%
747
281
1650
2510
Zhong An
$981M
34. US is still the absolute leader
in the Insurtech industry
Insurance deals by geography
Exits Largest Deals
125
46% US
Other 13%
8% India
Germany 8%
UK 6%
France 5%
Canada 4%
Australia 3%
China 3%
Brazil 2%
Israel 2%
IPO
IPO
IPO
IPO
$674M
$636M
$452M
$167M
$400M
$160M
$80M
$25,5M
$15M
US is still a dominant
market, with almost 50% of
all investments came to US
companies, India is
surprisingly catching up the
Insurance trend;
Most of IPOs are still
at their core are classic
insurers, that dive into the
transformation
Almost 1400 companies:
~1/3
funded
A round
~190 companies
B round
~85 companies
Q4’16
Q3’16
Q3’16
36. Fintech VC market seems to be saturated,
we expect it to be in 2017 on the same size level
as in 2016 (+- 10-20%)
Emerging fintech markets (Asia, Africa, LatAm)
will double developed markets (EU and US)
Less number of mega-deals
(however first one has happened – $500M in SoFi)
More number of series B/C rounds
Hope for few really notable IPOs (Ant / Lu/ Stripe)
FinTech in SE Asia should show the highest
growth across all markets (+100-200%),
largely at the end of 2017
Global FinTech Market expectations in 2017
TOP10 Anticipated Fintech IPOs in 2017
CompanyRank Country Exchange Segment Justification
China HKEX Insurance Planned
China NYSE Lending Planned
China Nasdaq Lending Planned
China ? Lending Planned
China HKEX Lending Postponed
China HKEX Payments Postponed
Singapore SGX Trading Planned
Nigeria LSE Payments Postponed
USA ? Payments Planned
Nasdaq Lending PostponedUSA
1
2
3
4
5
6
7
8
9
10
37. Top Fintech influencers’ predictions for 2017:
fintech Global expansion and collaboration, Regtech rise,
Open API banking and bank-as-a-service are in the top
Fintech buzz continues, but not in the USA
Ant Financial goes global
Regtech moves deeper into bank infrastructure
Regulators compete to innovate more
A major global bank gets broken into pieces
Blockchain PoC goes mainstream
Machine learning and AI are all the rage
Fintech companies partner among themselves
and merge to build an ecosystem
In-messenger remittances are to be deployed
on a global scale
SME lending continues the growth as is still far
from saturation
BaaS and BaaP models emerge, especially in
Asia
Preparation for global mobile banking and
wallets war ends, and the war begins
Blockchain is either boom or bust
BaaS and BaaP platforms step into the creative
stage
Cybersecurity, AML/KYC see rise in funding and
activity
Regulators collaborate at the sandbox level;
Alternative lenders face more counter-moves
from banks
More roboadvisor and AM tech offers for
incumbents
Micropayments make it big
Blockchain sees consolidation,
patent wars and standardization
Venture Partner
Santander Innoventures,
CFA
Pascal Bouvier
Partner at Life.SREDAVC
Slava Solodkiy
CEO of The Finanser Ltd
Chris Skinner
Source:TheFinancer,LinkedIn,e27
38. APIs and Open Banking will start to shift the banking landscape with more traction in Europe and
Asia, but we’re likely to start seeing the gap between leaders and laggards widen
William Sullivan, Head of Global Financial Services Intelligence for CapGemini
I. Open banking and API are all the rage
The hype around banking APIs will increase, even overtaking cryptocurrencies.
Major banks will launch public API platforms
APIs are arguably one of the biggest topics in the industry.
The business model for profiting as a platform is key here, and many are still struggling with it
Global regulators will embrace fintech competition and regulatory concessions …
Africa will embrace APIs … financial inclusion will become a mainstream and actionable topic …
and the US will embrace change in the regulatory and political system
2015 was all about blockchain. 2016 saw an explosion of interest in machine learning and artifi-
cial intelligence. 2017 will be the year of open marketplaces and platforms.
Platforms support the rapid cycle deployment of microservices into a financial marketplace...
any bank with old legacy technology will start to look like a dinosaur
Shamir Karkal, Head of Open APIs at BBVA
David Brear, CEO and Founder of 11:FS
Chris Skinner, Author and CEO of The Finanser Ltd
Simon Taylor, Co-Founder of 11:FS
39. Key initiatives in bank-as-a-service
and open banking areas
BAASIS, launched in 2016 in Singapore, is
an open-API Bank-as-a-Service platform,
aimed to connect banks and FinTech
startups across Asia Pacific region. Currently
is in integration phase with several banks on
different markets.
In 1H 2016 was launched solarisBank,
banking-as-a-platform startup with a full
banking license in Germany. It provides
account and transaction services, compli-
ance and trust solutions, working capital
financing, and online loans for fintech
startups.
Bancorp – industry leading US-based
largest bank-as-a-service platform, hosting
100+ non-banks with processing volume of
$200+ billion USD annually. Different
clients of different size, including google
wallet, PayPal, T-Mobile, yodlee and others
In 4Q 2016 Citi launched global API
Developer Portal aimed to open architec-
ture to facilitate collaboration with FinTech
companies. APIs includes account
management, p2p payments, money
transfer, rewards, investment purchases
and account authorization.
Otkritie, the biggest privately-owned bank
in Russia, through the process of integrat-
ing with leading digital bank for SMEs
Tochka, developed its own modern
API-platform, that was later used to
integrate with fintech startups, including
mobile bank for retail clients Rocketbank.
In 2H 2016 BBVA launched its API market-
place, aimed to offer other companies a
way to leverage BBVA’s capabilities to build
their services. Fintech startups has an
access to such APIs as PayStats, Connect,
Accounts and Cards
The UK government in 2016 has set up the
Open Banking Working Group (OBWG) in
order to create an open banking standard
that makes it easy to share and use financial
data. It includes development of open API to
enable services to be built using bank and
customer data
In Q4 2016 the Korean Government
launched an open banking platform for
financial institutions (16 banks) that will allow
them to build services that automatically
populate financial information for new
customers. The platform will essentially serve
as database of consumer financial informa-
tion that is accessible via API.
In 4Q 2016 The Monetary Authority of
Singapore (MAS) published 12 sets of data
from MAS’ Monthly Statistical Bulletin as APIs.
MAS is encouraging financial industry players
to publish open APIs on their datasets, to
allow users to connect information and offer
innovative solutions
Startups and tech companies Banks Government initiatives
41. g
There are more than 20 verticals in Fintech
and more than 20 leaders in each vertical
(about 5K fintechs total)
How to connect?
Price
comparison
Remittances
Wealth
management
Trading
Online
scoring
SMELending
P2Ploans
Onlinelending
forindividuals
Crowdinvesting
Crowdfunding
E-wallets
Cashregister
POSsolutions
Online
acquiring
mPOS
Neobanks
RegTech
Acounting
InsurTech
PFM/PFP
Blockchain
Bitcoin
Banks’ pain: With whom to work?
42. Banks
Licensed and regulated
banking back-ends (belongs to banks
in each country in Asia-Pacific region)
based on 40+ universal APIs
100+ fintech-startups
Middleware
provide for them
universal APIs
Fintech-startups do not
need to spend time,
money and human
resources to be integrated
in each Asian country
Banks do not need to
spend their time and
money to create new
APIs and to communicate
with all startups all over
the world
Bank-as-a-service
Ecosystem
Layers of BaaS platform
43. Traditional
bank
Servers
IT-guys to support
and manage servers
- complience
- processing center
- card issuing
- money storage
You may write off infrastructure investments or use them as new revenue streams
human resources
support
marketing
product
customers
Amazon’s profit
comes from AWS!
67%
2015
Creation
of AWS for
new players
2006
License
New fintech
players
To fight with
or to earn with
?
BaaS for banks as Amazon Web Services for e-commerce
45. Online-trading Online-remittances
Online-bank mPOS
mPOS e-wallets
Online-lending Online bank
Online-lendingOnline bank
Mobile bank Online-remittances
III. Expansion and collaboration (vertical, horizontal)
of large FinTech players
2016 2017?
SE Asia
Russia
Europe
Expansion plans
USA
SE Asia
SE Asia
LATAM
46. In 2017 neo-banks
should prove their sustainability
through several achievemments:
Hundreds of thousands / millions of
customers
(n26, Atom, Nubank)
Reaching operational profitability
(Nickel, Moven, Fidor)
Global expansion and Open API play
(Fidor, Monzo, Tandem)
Expansion of product line
(N26, Tandem)
2016:
year of a new wave of mobile-first
challenger banks (Tandem, Atom, Monzo,
Starling, N26, Nickel, Nubank, GoHenry) – raised
more than $300M
The growing competition and atten-
tion to the sector is evidenced by a
number of acquisitions (Rocketbank by
Russian Otkritie, Fidor by French BPCE, Holvi by
Spanish BBVA, ZenBankx by SoFi) and launches of
proprietary products (GSbank by Goldman Sachs,
Indian Digibankby Singaporean DBS, JP Morgan’s
activity in Indonesia)
Another new trend for modern banks is
crowdinvesting (equity crowdfunding).
During the last half year two British challenger
banks, Tandem, GoHenry and Monzo, crowdfunded
£1M;
IV. Raise of mobile banks
47. Blockchain Regtech Payments
Blockchain industry is expected to pass
its stage of “prove-of-concept” and show
“prove-of-business” meaning concrete
operational and financial achevements
and business results. We expect to see
the shift of attention from so-called
“consortiums” and assiciations to real
technological startups with innovative
solutions and products.
The top sectors are predominantly in
finance and technological solutions
(Blockstream, Bitfury, etc)
There is a decreasing tendency towards
launching new blockchain companies
but there is an increase in investment
rounds
The most successful applications are
expected to be in finance in 2017 and
the emerging of new googles and
amazons are to be expected as well
In 2017, we expect to see the emergence
of regtech areas like analytics, algo-
rithms, due diligence, fraud detection,
verification of payment and authentica-
tion
According to a recent research by the
Institute of International Finance, several
banks are beginning to explore regtech
and are working with start-ups to find
possible solutions to different regula-
tory challenges
Last year 2016, the UK government
budget allocated funds to support the
adoption of new technologies to deliver
regulatory requirements. In 2017,
regtech will continue to gather support
from governments around the world
PSD2, which enable owners of numer-
ous bank accounts to view all of their
multibank details on one interface and
Payment Initiation Services Providers
(PISP), to continue reinforcing security
and clarifying the role of payment
players
Cooperation with banks and FinTechs,
the emergence of new forms of collab-
oration like through API– a protocol
enabling communication between
different information systems
Other expectation of 2017