FinTech in Europe: Early signs of Brexit impact? February 2016

Transcription

1 FinTech in Europe: Early signs of Brexit impact? February 2016

2 In last 5 years, venture capital invested 6.4 billion in European FinTech, of which 37% in UK (33% in 2016) Top countries by funding Notable examples United Kingdom 2,376M United Kingdom Israel 1,180M Israel Germany 812M Germany Sweden 488M Sweden Netherlands France 352M 319M By comparison: JPMorgan s annual technology budget stands at $9.6 billion (1) Netherlands France Ireland 130M Ireland Spain 129M Spain Italy 95M Italy Source: Bloomberg. 2

3 Top categories are payment services and loans. Funding is mostly going into B2B but B2C models are catching up Top categories by funding (1) Notable examples Payments Banking, credit & loans 1,845M 1,771M Payments Banking, credit & loans Security 607M Security Investment management 545M Investment management Crowdfunding Business software Big data 512M 456M 368M Funding by model B2B: 4.0 billion B2C: 1.8 billion Crowdfunding Business software Big data Transfers 363M Transfer Analytics 310M Analytics Small business 303M Small business FX & Trading 223M FX & trading Cryptocurrency Insurance Comparison marketplaces 178M 165M 110M Financial price comparison has needed little capital but produced many exits: es/fintech/tags/price%20comparison Cryptocurrency Insurance Comparison marketplaces Some companies overlap, and therefore doublecounting between industries, resulting in them adding them up to more than total investments. 3

4 Steady increase in both large and smaller FinTech rounds is on track for another strong quarter Full 2017 so far data: Nearly 600M in funding rounds Amount raised ( M) Top 8 rounds ( M) Number of rounds M 347M M M 72M 71M 88M 103M 130M 78M M 525M M M M M M M M 649M M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb Boku 31.8M izettle 28.5M SumUp 18.2M borro 23.6M 3V Transaction Alpha Payments Services 23.2M Cloud 10.9M Calastone 16.4M Funding Circle 33.6M Klarna 90M izettle 50.3M Funding Circle 59.1M Adyen 227.3M WorldRemit 90.9M Funding Circle 136.4M Prodigy Finance 90.9M Atom Bank 98.4M Starling Bank 57.6M Number M OurCrowd 65.5M Payoneer 163.6M etoro 13.6M CloudLock 7.9M Top 8 SOHO OS 7.3M rounds: Leetchi 5M Currency Cloud 3.6M Kaminario 25.5M EXTRABANCA 15M Funding Circle 14.5M Accumulate 9.1M mysupermarket 9.1M Gastrofix 1.8M E-Blink 8.5M OpenGamma 13.6M Paymill 11.8M broadbandchoic es 12M ObjectWay 10M AppGratis 12.3M Auxmoney 10.9M flock 8.2M Simplee 9.1M Proxama 12M WorldRemit 36.4M Centralway 7M payleven 10M ezbob 3.8M Fortumo 9.1M ComparaMeglio. it 6.5M Tapingo 3.2M Kreditech 3.6M Paymill 4.5M TransferWise 5.5M MoneyFarm 3M Currency Cloud 2.7M TIM Group 2.2M JUSP 4M izettle 5M flock 6.1M Meniga 5.9M LendInvest 10.2M Pret d Union 10M Future Finance 24.1M Payoneer 22.7M ipayst 5.4M Bitstamp 9.1M Duedil 15.5M Judo Payments 4.5M DocTrackr 1.8M Seedrs 3.1M Duedil 4.5M Kreditech 4.5M Checkmarx 7.3M Aria Networks 3.6M Flattr 1.6M Superb 7.1M LifePay 2.4M ERN 1.8M Masabi 2.5M GoCardless 3M Ebury 4.2M IQcard 3.4M Azimo 9.1M Kreditech 36.4M Nutmeg 28.8M TransferWise 22.7M OurCrowd 22.7M KnC Miner 12.7M RateSetter 12M SumUp 11.8M Zooz Mobile 10.9M Kaminario 48.4M Atom Bank 30M Blockchain 27.3M etoro 24.5M TransferWise 52.7M Kaminario 36.4M payleven 24M RateSetter 24M Checkmarx 76.4M LendInvest 26.4M Cybereason 22.7M Tapingo 20M Kreditech 82.5M izettle 60M Adyen 50M Payoneer 45.5M CloudLock 15M Ebury 21.6M Zooz 10.9M Trustly 23M borro 17.3M Lendico 20M Bima 34.9M Tapingo 9.5M Bima 20M Osper 9.1M BitFury Group 18.2M LightCyber 9.1M BitFury Group 18.2M Bitnet Technologies 13.2M KnCMiner 13.7M Digital Origin 13.6M Azimo 18.2M Currency Cloud 16.4M Pret d Union 30.9M AcadiaSoft 27.3M Ebury 75.5M JFrog 45.5M Cybereason 53.6M TransferWise 52.8M SentinelOne 22.7M illusive Networks 20M MoneyFarm 16M Euroloan 15M WorldRemit 40.9M Fairstone Group 35M Finanzcheck.de 33M smava 30.9M FinanceFox 25.5M Giesecke & Devrient 80M Tandem 42M Spotcap 28.6M Klarna 29.1M Velocity 20.5M Nutmeg 33.6M ezbob 24M Tandem 26.4M Topcompare.be 20M Future Finance 22.8M Riskified 22.7M LendInvest 20.4M TransferWise 23.6M Zooz 21.8M Deposit Solutions 15M Afrimarket 10M Billfront 30M iwoca 30M iwoca 24M Orderbird 20M Clark 9.9M Nutmeg 13.4M Note: 2017 Jan Feb show actual only. March 2017 not included. 4

5 In 2016, UK funding of FinTech companies dropped 29% whereas European FinTech funding grew by 38% Europe excl. UK United Kingdom Amount raised ( billion) Number of rounds 1,465M 344 In 2015, UK fintech alone was almost the same size as rest of Europe. In 2016, it is half. Number of rounds held up well. 1,004M 1,059M 227 <- same scale -> 984M M M 245M M 155M 416M Rest of Europe United Kingdom 5

6 June 2016 Brexit vote coincided exactly with sharp decline in UK fintech funding, but Q is already higher again Europe excl. UK United Kingdom <- same scale -> 454M 390M M M 446M M Brexit vote in June 23, M 242M M M M M M 74M M 54M 62M 50M 36M 24M M M 120M 105M M 15 71M M 35M 8 47M M 10M 11M 23M 272M 260M 239M 249M 223M M M M M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb Amount raised ( M) Seed Early VC (A, B, C) Late (D+) Total number of rounds Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb Amount raised ( M) Seed Early VC (A, B, C) Late (D+) Total number of rounds Note: 2017 Jan Feb show actual only. March 2017 not included. 6

7 UK is still leading in Fintech, but rest of Europe and especially Israel are catching up 984M Amount raised ( billion) Number of rounds M 635M M M 155M M M 500M 349M 221M M M M 67M 40M 7 17M M 21 37M 42M 56 Adyen, izettle, Klarna M 114M 122M M 443M United Kingdom Israel Germany France Rest of Europe 216M 248M Adyen M izettle, Klarna 40M 5 6M 3 139M M 3 5 5M 3M 16 68M M 5 6 3M 1M 19 64M M 40M 3 2M 41M 8 31M M 43M M 71M M 118M Sweden Netherlands Spain Ireland Rest of the rest 7

8 Relatively few exits in FinTech, except in payment services. FinTech is still a young category, in VC context Capital efficiency ratio (1) Gaming 29.5x 26.3B Fashion Enterprise software 4.7x 2.3x 13.9B 13.7B Food 3.2x 11.6B Transportation Financial 2.6x 1.1x 7.2B 6.9B Exits include: Markit, Worldpay, Misys, Skrill, VocaLink and others Search Travel Healthcare 6.1x 2.7x 1.0x 4.8B 6.7B 6.5B Search includes Yandex, Trivago, Skyscanner, and Momondo but also financial product comparison sites / marketplaces like Gocompare, Verivox, Facile, MoneySupermarket, Gruppo MuitiOnline Security 2.0x 4.0B Content 2.2x 3.8B Semiconductors 7.4x 3.7B Real estate 7.3x 3.6B Note: some overlap, and therefore doublecounting between industries, resulting in them adding them up to more than total exit volume. 1. Comparison of capital invested in same years. Not return on capital. Only indicative of relative capital efficiency till thus far of industry. 8

9 More online resources on Dealroom Companies Exits Rounds Map 9

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