March 2018 has been an interesting month for FinTech investment. MEDICI™’s recent report shows a staggering 150% month-on-month growth in FinTech VC investment, increasing from $1.4 billion in February 2018 to $3.49 billion in March 2018. (Image Source: goMEDICI.com)
The US has maintained its investment lead within the industry, managing to acquire a majority 57.5% of March’s investment, totaling over $2 billion.
At just over $405 million, the UK was a distant runner-up, accounting for 11.6% of VC investments. Germany, China, and India together managed a combined $562 million, with $252.7 million, $184.2 million, and $125.1 million respectively.
This is interesting when compared to adoption, considering that China and India actually have the highest FinTech adoption rates in the world (according to EY’s 2017 FinTech Adoption Index).
If we look at deal volume, not surprisingly, the US still comes in first with 59 deals and the UK second with 17. However, India takes the third spot with 13 deals. China and Germany follow with 6 and 4 deals respectively.
When broken down, the $3.49 billion dollars of funding raised can be divided into seven different categories. Lending (startup funding) comprised the largest category, at $806.2 million. The next two categories, NeoBanks
InsurTech came in fourth at $410.2 million. Trailing at the end were AI (+ML+NLP), Security - Fraud & Authentication, and Payments, with $218.5, $211.9, and $158.5 million respectively.
The top six deals of March 2018 were:
The US took the vast majority of all funding for this category at 97%. At 202%, lending also experienced the second-highest increase
Neobanks were the second-highest funded category at $586.7 million. With only four deals in this category, there were some big players, with N26 and Atom Bank being the largest at over $150 million apiece.
Investment Platform funding ($549.5 million) was driven mainly by two companies: Robinhood and eToro, taking in a combined 82% of the funding. This category also experienced the largest growth (compared to February) at an astounding 319%.
Coming in at $410 million, InsurTech saw a smaller but still impressive month-on-month growth rate of 44%, with
AI/ML also experienced significant growth from February with a 114% increase. WeCash took almost three-quarters of the $218.5 funding, with a windfall of $160 million.
Security, Fraud, & Authentication experienced even greater growth than the AI/ML category at 152%. Altogether, Sift Science, Netsparker, and BioCatch raised $123 million to capture almost 60% of the funding raised for this category.
Finally, payment startups raised $158.5 million in March. Percentage-wise, it lost 19%. However, Pine Labs made off with $82 million to account for slightly over half of all the money raised in this category.