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According to a KPMG report, investments in fintech companies based in the United States rose to $ 14.2 billion through 427 operations during the first half of 2018, as investors poured money into startups in emerging segments of fintech as regtech and blockchain, as well as in the advanced company phase.
KPMG stated that Fintech's investment in the United States reached a new high of over $ 8 billion in the second / eighteenth year, following a strong first quarter. Total investment during the first half of 2018 increased from $ 12.2 billion through 371 operations in the second half of 2017 and included over $ 10 million + mega rounds, including Insurtechs Oscar and Lemonade and a consortium based company on blockchain R3.
"Unlike the wider VC market, early-stage fintech companies continued to attract solid capital flows to the United States, with the many major Q2 transactions going to first-order companies" said Brian Hughes, USA national co-lead partner, Risk Capital Practice, KPMG. "At the same time, those who are able to attract funding in later stages probably reflect investor confidence in their ability to become market leaders, if they are not already."
During the first half of 2018, VC invests in blockchain in the United States totaling $ 858 million, exceeding the total of 2017 by $ 631 million.
"There is more flow of VC available than investment opportunities – a sign of tremendous growth in space," said Safwan Zaheer, Financial Services Digital & US Fintech lead for KPMG LLP.
"Investments in companies linked to the blockchain have already doubled in the first half of 2018 compared to 2017. Blockchain has the potential to transform banking services.If banking systems should be rewritten today, they would be based on the blockchain." [19659007] Payment companies see strong outflows
The payment and loan sectors continued to be one of the most mature sub-sectors of the fintech during the first half of 2018, with most of the investment activities focusing on advanced companies and those trying to get out.
Traditional banks invest in digital banking deals
During the first half of 2018, a number of traditional US banks have extended their digital banking initiatives. JP Morgan has announced the success of a pilot project of a digital bank and its intent to implement the digital bank option at the national level. Citibank also announced a digital only bank, while Goldman Sachs announced the expansion of its Marcus initiative in the United Kingdom
Blank Check Companies on the rise in the United States
More than 20 new blank control companies ( a development company that does not have a specific plan or purpose, or has indicated that its business plan is engaged in a merger or acquisition with an unidentified company) was created during the first half of 2018, with over 25% who noticed their intention to look for fintech opportunities. The use of blank check companies suggests the growing importance that investors are investing in fintech opportunities and the desire to raise the funds needed to make a purchase when the right opportunities arise.
Upcoming trends to keep eye on
Blockchain, regtech and insurtech are all expected to gain momentum, although artificial intelligence and automation of robotic processes continue to drive cross-cutting opportunities . There will probably continue to be an emphasis on partnering with globally aggressive retailers and technology leaders.
