In the US, venture capital investments in the first two quarters alone were more than the total invested in 2017, the report titled “Pulse of Fintech 2018” says.
Some of the headline deals in the sector include Vantiv’s acquisition of WorldPay at $12.9 billion. Another one is Ant Financial’s $14 billion VC funding round.
A KPMG report shows that the sector has continued to mature this year.
“In the more mature areas of fintech, dominant market players were able to attract larger investment rounds, including challenger banks Revolut ($250 million) in the UK and N26 ($160 million) in Germany and peer-to-peer (P2P) payments firm Circle in the US ($110 million),” the report shows.
In terms of where the funds were invested in, a great deal went into areas such as insurtech, an area that looks into disrupting the insurance model with innovation and tech. Some of the players in this sector include Lemonade.
“Over the past 6 months, insurtech companies attracted a significant amount of investment, including $100 million+ megarounds to Oscar and Lemonade.”
ICOs sector has more than doubled
Investments into blockchain technology have surpassed those in 2017, according to a KPMG report.
This comes in the backdrop of a not so rosy picture in the cryptocurrency market which has declined to about a quarter of its value at the start of the year. Blockchain powers cryptocurrencies such as bitcoin but it has since found many other use cases.
In related news, the ICOs sector has also more than doubled in 2018. According to a report by ICORATING, ICOs have so far attracted more than $11,690,981,663 or about 10 times the funds raised in the first half of 2017.
The first half of 2018 far outperformed the same period in 2017 by 6.4 times excluding EOS, the “ICO Market Research Q2 2018” says.
However, the number of projects which could not raise more than $100,000 has increased from 13% in the first half of 2017 to 50% in the first half of 2018. Overall, 55% of all ICO projects in quarter two failed. “Only 7% of announced ICO projects were listed on exchange,” the report says.