KPMG Research Reveals Explosion in Fintech Funding

March 18, 2016         By: Mike Dautner

Research from a joint venture between Netherlands-based KPMG and CB Insights has revealed more details about the explosion of financial technology last year.

Although other reports have been released so far this year, KPMG’s new report provides more robust and detailed information.

Although 2015 was an amazing year, the report notes that investmentss into the financial technology sector cooled off in the final quarter of the year.

According to the report, there was a total of $19.1 billion of investments made into financial technology companies last year, with $13.8 billion invested in companies with venture capitalist support.

Compared to 2014, fintech investments grew 106 percent in 2015, despite investments retreating 64 percent in the final quarter of the year.

The report also noted that 19 new fintech “unicorns” were crowned, meaning they reached $1 billion or more in market valuation. 14 of these unicorns were either online payment or lending companies.

Just about every metric grew significantly in 2015, including the number of deals valued at more than $50 million, which quadrupled last year.

KPMG’s research also notes that fintech investments into the Asia Pacific grew at the fastest pace, quadrupling to $4.5 billion.

“2015 was a tremendous year for fintech investment around the globe.

The evolving needs of digitally savvy consumers and the drive for efficiency, not least to meet regulatory and compliance costs, is propelling innovation in financial services like never before, and investors are taking notice,” said Warren Mead, KPMG’s global co-lead for Fintech.