FT Partners 2019 FinTech Almanac

2019 FINTECH ALMANAC
FT Partners Research | February 2020
FINTECH ALMANAC
2019 ANNUAL

FT PARTNERS – FOCUSED EXCLUSIVELY ON FINTECH
Overview of FT Partners
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FT Partners’ Advisory Capabilities FT Partners’ FinTech Industry Research
ProprietaryFinTech
Infographics
Monthly FinTech
Market Analysis
In-Depth Industry
Research Reports
FinTech M&A / Financing
Transaction Profiles
FT PARTNERS
ADVISORY
FINTECH
RESEARCH &
INSIGHTS
Steve McLaughlin | Founder, CEO, Managing Partner
The Only Investment Bank Focused Exclusively on FinTech
Contact: steve.mclaughlin@ftpartners.com | 415-992-8880

Overview of FT Partners
Unparalleled FinTech Domain ExpertiseProprietary FinTech Database
• Data Insights
• FinTech Deal Statistics
• Investment Trends
• Industry Research
• Public Comparables
33,500+ FinTech Companies
15,000+ Financings
12,500+ M&A Deals
11,500+ PE / VC Firms

FT Partners’ Data
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FT PARTNERS
RESEARCH
6
2019 HIGHLIGHTS1.
FT Partners Research

Executive Summary
Financing M&A
$233.8 billion
in M&A volume
989
transactions
&
2019 in Review
1,813
transactions
&
$44.6 billion
in Financing volume

Executive Summary - Financing
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Financing

Executive Summary – M&A
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M&A

FINTECH FINANCING2.

Global FinTech Financing Volume by Year
FinTech Financing Statistics
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0

FinTech Financing Statistics (cont.)
Global Number of Financing Transactions

$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Global FinTech Financing Volume by Quarter: Q4‘16 – Q4‘19
≥

Global FinTech Financing: North America vs. International
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
VOLUME
DEAL COUNT

North America vs. International FinTech Financing Volume
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
49%
51%
(1)

$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
North America vs. International FinTech Financing Volume

-
50
100
150
200
250
300
North America vs. International FinTech Financing: Number of Transactions

-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2019 North America vs. International FinTech Financing Volume – by Sector

-
100
200
300
400
500
600
700
2019 North America vs. International FinTech Financing Deal Count – by Sector

Number of Global Financings by Size

Number of Financing Rounds with Announced $ Amounts / Number of Rounds $100 million & Over

Selected Large FinTech Financing Transactions – North America

Selected Large FinTech Financing Transactions – Europe

Selected Large FinTech Financing Transactions – International ex Europe

Ranked by number of new investments in 2019
16
16
15
14
14
12
10
10
10
9
Most Active FinTech Investors
Venture Capital: New Investments in 2019

Ranked by number of new investments in 2019
20
14
13
10
9
9
8
8
7
7
7
Most Active FinTech Investors (cont.)
Strategic & Corporate Venture Capital: New Investments in 2019

Most Active FinTech Investors (cont.)
Total Investments (including follow-ons): 2019
Strategic & Corporate Venture Capital
20 20 0
18 13 5
15 14 1
14 9 5
13 8 5
13 7 6
11 10 1
11 7 4
11 6 5
11 6 5
10 9 1
Ranked by total number of investments in 2019 (including follow-ons)
35 14 21
27 7 20
23 7 16
21 16 5
21 6 15
19 15 4
19 14 5
18 16 2
18 12 6
18 10 8
15 9 6
15 8 7
15 5 10
Venture Capital

0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
FinTech Investors – Strategic & Corporate Venture Capital Participation

0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
FinTech Investors – Strategic & Corporate Venture Capital Participation (cont.)

MIDDLE EAST 36 $483 1%2%
OCEANIA
SOUTH AMERICA
2019 FinTech Financing Activity By Region
EUROPE 502 $10,029
NORTH AMERICA 858 $22,890
ASIA 306 $8,616
AFRICA 28 $286
33 $489
50 $1,807
51%47%
23%28%
4%3%
1%2%
1%1%
19%17%

$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
FinTech Financing Activity By Region – Dollar Volume
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0

$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
$800.0
$900.0
$1,000 .0
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
$800.0
$900.0
$1,000 .0
$0.0
$500.0
$1,000 .0
$1,500 .0
$2,000 .0
FinTech Financing Activity By Region – Dollar Volume
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
$800.0
$900.0
$1,000 .0

FinTech Financing Activity By Region – Number of Financings

Most Active Countries By Number of Financings in 2019

U.S. Map of 2019 Financing Transactions

U.S. Map of 2019 Financing Transactions – Bay Area & East Coast Snapshots

FINTECH M&A3.

Global FinTech M&A Volume
FinTech M&A Statistics
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0

FinTech M&A Statistics (cont.)
Global FinTech M&A Deal Count
-
200
400
600
800
1,000
1,200

Global FinTech M&A: North America vs. International
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
VOLUME
DEAL COUNT

$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
North America vs. International FinTech M&A Volume

-
50
100
150
200
North America vs. International FinTech M&A Deal Count

2019 North America vs. International FinTech M&A Volume – by Sector
-
20,000
40,000
60,000
80,000
100,00 0
120,00 0
140,00 0

2019 North America vs. International FinTech M&A Deal Count – by Sector
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50
100
150
200
250

$0 - <100 mm
$100 - <500 mm
$500 mm - <1 bn
$1+ bn
Number of Global M&A Deals by Size
20192018

Selected Large FinTech M&A Deals – North America

Selected Large FinTech M&A Deals - Europe

Selected Large FinTech M&A Deals – International ex Europe

Cross-Border M&A Deals

Strategic Cross-Border FinTech M&A Deals

Selected Strategic Cross-Border M&A Deals
GoPay

Strategic M&A vs. Private Equity Buyouts

FinTech M&A Statistics: Most Active Acquirers
2019 Strategic FinTech M&A 2019 Private Equity Buyouts

2019 Strategic FinTech M&A
FinTech M&A Statistics: Most Active Acquirers (cont.)

2019 Private Equity Buyouts
FinTech M&A Statistics: Most Active Acquirers (cont.)

SECTOR BREAKDOWNS4.

$0.0
$5.0
$10.0
$15.0
$20.0
2019 Global FinTech Financing by Sector
Financing Volume ($ in billions)Number of Financing Transactions
Sector Breakdowns: Financing

SECTOR BREAKDOWNS:
FINANCINGi.

Sector Breakdowns: 2019 Financing Statistics

Global Financing Volume / Deal Count
(150 )
(50)
50
150
250
350
450
550

Selected Large Banking / Lending Tech Financings in 2019

(15)
35
85
135
185
235
285
335
385
435
485

Selected Large Payments Financings in 2019

(10)
40
90
140
190
240
290
340

Selected Large Wealth & Capital Markets Tech Financings in 2019

(45)
5
55
105
155
205

Selected Large InsurTech Financings in 2019

(30)
(10)
10
30
50
70
90
110
130
150

Selected Large Healthcare FinTech Financings in 2019

(20)
30
80
130
180
230
280

Selected Large Financial Management Solutions Financings in 2019

(20)
(10)
-
10
20
30
40
50

Selected Largest / Significant Financial BPO Financings in 2019

SECTOR BREAKDOWNS:
M&Aii.

$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
2019 Global FinTech M&A by Sector
M&A Volume ($ in billions)Number of M&A Transactions (1)
Sector Breakdowns: M&A

Sector Breakdowns: 2019 M&A Statistics

(45)
55
155
255
355
455
Global M&A Volume / Deal Count

Selected Large / Significant Banking / Lending Tech M&A Deals in 2019

-
50
100
150
200
250
300
350

Selected Large / Significant Payments M&A Deals in 2019

(20)
30
80
130
180
230
280

Selected Large Wealth & Capital Markets Tech M&A Deals in 2019

SUB-SECTOR HIGHLIGHTS5.

Sub-Sector Highlights

Sub-Sector Highlights (cont.)

FINTECH IPOs6.

U.S. FinTech IPOs in 2019
Filing Date IPO Date Company
Exchange /
Ticker
Amount
Raised
IPO
Price
Current
Price
Current
Market Cap
Total
Return
FinTech Sector Target Country

10
13
19
13
7
8
15
17
Amount Raised / Number of IPOs & Sector Breakdown by Number
Volume and Number of U.S. FinTech IPOs

Filing Date IPO Date Company
Exchange /
Ticker
Amount
Raised
IPO
Price
Current
Price
Current
Market Cap
Total
Return
FinTech Sector Target Country

2
6 6
12 12
15
11
13
Amount Raised / Number of IPOs & Sector Breakdown by Number
Volume and Number of International FinTech IPOs

Median Age (in Years) of FinTech Companies at the Time of IPO
Funding Source Breakdown by Number of
IPOs Since 2005
US FinTech IPO Market – Age of Companies and Funding Sources
Average / Median Age of Companies at Time of IPO by Funding Source

Selected Well-Funded Private FinTech Companies in the U.S.

APPENDIX7.

i.
APPENDIX:
HISTORY OF FINTECH &
SECTOR DEFINITIONS

What is FinTech?

A Brief History of FinTech
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A Brief History of FinTech (cont.)
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Multiple Verticals Variety of End Users Multiple Business Models

FinTech Business Models
Example Business Models

Selected FT Partners’ Clients in Each FinTech Sector
PAYMENTS
WEALTH & CAPITAL
MARKETS TECH
INSURTECH
HEALTHCARE FIN.
MGMT. TECH /
HEALTH INSURANCE
FINANCIAL MGMT.
SOLUTIONS
FINANCIAL
BPO
BANKING / LENDING /
REAL ESTATE TECH

Closer Look at Payments
PAYMENTS

Closer Look at Payments (cont.)

Payments Landscape
PAYMENTS
Merchant Services
Networks / Associations
Online / Mobile Payments
Card-Based Payments Products
Financial Institutions
International Money Transfer
E-Rewards / Loyalty
Transaction Security
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Telcos: Carrier Billing & NFC Infrstrc.
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Closer Look at Banking and Lending Technology
BANKING / LENDING TECH

Closer Look at Banking and Lending Technology (cont.)

Banking / Lending / Real Estate Technology Landscape
Alternative Lending
Consumer
Small / Medium Business
Real Estate
Banking Technology
Enterprise Banking Tech
Real Estate Tech Bank Payment Solutions
Consumer-Oriented Fin. Services
BANKING / LENDING / REAL ESTATE TECH

Closer Look at Wealth & Capital Markets Technology
WEALTH & CAPITAL MARKETS TECH

Closer Look at Wealth & Capital Markets Technology (cont.)

Wealth & Capital Markets Technology Landscape
Back-Middle Office Tech
Data / Analytics / ResearchLiquidity Pools
Trading Technology Wealth Management
Online Brokers / Trading / Custodians

Closer Look at InsurTech
INSURTECH

Closer Look at InsurTech (cont.)

InsurTech Landscape
INSURTECH
Data & Analytics Sales & Distribution
Target
Users
FinTech
Area of
Focus

Closer Look at Healthcare Financial Management Technology
HEALTHCARE FINTECH

Closer Look at Healthcare Financial Management Technology (cont.)

Healthcare Financial Management Technology Landscape
HEALTHCARE FINTECH
Sectors
Patient Care Administration
Benefits
Management
Health Insurance
Sales &
Distribution
Other Healthcare
Information
Technology
FinTechAreaofFocusTargetUsers

Closer Look at Financial Management Solutions (FMS)
FINANCIAL MANAGEMENT SOLUTONS

Closer Look at Financial Management Solutions (cont.)

Financial Management Solutions Landscape
FINANCIAL MANAGEMENT SOLUTONS

Closer Look at Financial Business Process Outsourcing (“BPO”)
FINANCIAL BPO

Closer Look at Financial BPO (cont.)

Financial BPO Landscape
FINANCIAL BPO
Outsourced
Solutions Call Centers
KEY FinTech Non-FinTech

ii.
APPENDIX:
TRANSACTION PROFILES

Appendix: Published Transaction Profiles
Financing

M&A

PAYMENTS
Financing

PAYMENTS
M&A

Financing M&A

Financing
FMS
M&A
Financing (cont.)

Financing
INSURTECH
M&A
Financing (cont.)

HEALTHCARE FINTECH
Financing M&A

iii.
APPENDIX:
OVERVIEW OF FT PARTNERS

Recent Exclusive FinTech CEO Interviews

FT Partners Real-Time FinTech Deal Statistics
MonthlyWeekly
View View View

FT Partners Research – U.S. FinTech IPO Analysis
Click pictures to view
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The Rise of Challenger Banks
Are the Apps Taking Over?
Click pictures to view report
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FT Partners Research – The Rise of Challenger Banks

FinTech in Africa
Leapfrogging Legacy Straight to Mobile
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FT Partners Research – FinTech in Africa

FT Partners Research – Brazil’s Emerging FinTech Ecosystem
Brazil’s Emerging FinTech Ecosystem
A Fertile Environment for Disruption
and Innovation
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FT Partners Research – Beyond the Credit Score
Beyond the Credit Score:
What’s Next in Consumer Credit
Management
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FT Partners Research – Auto FinTech
FT Partners’ 200+ page report provides an in-depth look
at the FinTech ecosystem surrounding the auto industry:
Auto FinTech: The Emerging FinTech
Ecosystem Surrounding the Auto Industry
The report includes:
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FT Partners Research – WealthTech
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WEALTHTECH
The Digitization of Wealth Management

FT Partners Research – InsurTech Industry Report
FT Partners’ 269-page report provides an in-depth
look at the major waves of innovation and
disruption that are beginning to radically alter the
insurance industry.
Prepare for the InsurTech Wave:
Overview of Key InsurTech Trends
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FT Partners Research – Global Money Transfer
Global Money Transfer: Emerging
Trends and Challenges
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Click picture to view report

Overview of FT Partners – 18 Years in Business
$

FT Partners is the Advisor of Choice for Leading FinTech Companies
FinTech Unicorns / Multi-Billion Dollar Deals Large Corporate Clients

Sellside and Buyside Experience (Selected Examples)
Sellside M&A Buyside M&A

Significant Experience Advising Large Financing Rounds and “Unicorns”

Selected FT Partners’ International / Cross-Border Experience

FT Partners’ History of Success Working with Public Companies
Public Clients IPOs Public Buyers

The FinTech Finance 40:
o Ranked #1 in 2017 and 2018 - Steve McLaughlin, FT Partners
M&A Advisor Awards
o Cross Border Deal of the Year and Corporate / Strategic Deal of the Year (2018)
o Investment Banker of the Year (2017) – Steve McLaughlin, CEO & Managing Partner of FT
Partners
o Investment Banking Firm of the Year (2016) – FT Partners
The Information’s “Silicon Valley’s Most Popular Dealmakers”
o Ranked as the #2 top Technology Investment Banker by The Information subscribers (2016)
o Only FinTech focused investment banking firm and banker on the list
LendIt Industry Awards 2018:
o FT Partners wins Top Investment Bank in FinTech
FT Partners’ Awards and Recognition

Award-Winning Investment Banking Franchise Focused on Superior Client Results

The FT Partners Senior Banker Team
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Name / Position Prior Background Experience / Education Years of Experience

FT Partners 2019 FinTech Almanac

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