thanx for the appreciation from those acknowledgments of previous posters and for the 58 thumbs up that shows appreciation not of my posting and research but I see it as 58 thumbs up for the information itself that being the excellent position we are sitting on should intiger live up to the expectations and profits they have said they are very comfortable to be able to achieve - Not trying to rehash and double on what information I was alluding to in the previous post but I would like to re-iterate the point I tried to get across- Great research in the week by previous posters showed just exactly where fintech companies are at and where they are headed- There was research provided also highlighting market cap valuations of startups in the fintech space- Like I already said in my original post in this thread, the main picture has to be fully understood and the article I have attatched below should be able to highlight in more depth the point that I am trying to get across thanks to the excellent work the has been put in as always by venture scanner
Those large market caps and the large funds that has and is being invested in the fintech space to date has predominantly been centred around the two main categories which is saturating the fintech space- those 2 as previously mentioned is both regarding payments and lending- As can be seen in the link as a snapshot, of the 1379 fintech companies that venture scanner are tracking, 346 companies are centred around lending in the fintech space with 359 focused on payments- that equates to 25% focused on lending and some 26% focused on lending- Before I et shot down, I understand that this is just a sample from venture scanner we are using but it is a true reflection from my research that that's where the majority of fintech's have been centred around from its inception- So that's 50% of the fintech space alone being centered on lending and payments. Add to that the fact that the 3rd largest category is personal finance fintech which take another 10% of the fintech space so that's a good 60% of the large funds and investment going into the top 3 categories
When you relate that to the articles I attatched yesterday regarding whether the bubble in the fintech space has in fact peaked and is about to burst you will re-call a lot of the experts talking about innovation being the key for successful fintech startups to get bigger market caps and to start making some serious headway ( in other words moving away from the already saturated top 3 fintech startup categories to date) ie think financial planning (wealth management) and offering a cheaper more timely option by offering a first offshore facility. Final point I'll say is just take a look from that article exactly just how much of that $33 billion has been invested to date on the retaill investing/wealth management category ( ie the space we are entering on a successful dd) - from the 1379 companies which venture scanner has chosen in its sample, only 124 companies or 9% of those companies are focused on the retail investing or wealth management side of things-
Its clear as day that when analysts try and caution at times that the fintech space might be a place to tread with caution due to a bubble about to pop, clearly that could be said for the top 3 categories that has just so much competition and overlap in that space but clearly the target category that intiger is in has imo hasn't even started to touch the surface for the amount of investment that it should be dedicated to- Just think about the report someone put out regarding the market cap averages of startup fintech's in the space- large large market caps have been giving to the top three that handle payments lending and also simple personal finance technologies. Foremost I apologise if it sounds like Im ramping here but the money I believe hasn't even started to role in on fintech's in the retail investment
: New ways for the consumers to invest — including theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks./wealth management side of things where I must add is defiantly higher margins than say personal finance fintech's - all imo dyor as usual
http://insights.venturescanner.com/tag/fintech-startups/
FinTech Q1 Update in 15 Visuals
March 4, 2016March 4, 2016Venture Scanner
We at
Venture Scanner are tracking 1,379 FinTech companies across 16 categories, with a combined funding amount of $33 Billion. The 15 visuals below summarize the current state of Financial Technology.
1. Financial Technology Market Overview
We organize Financial Technology into the 16 categories listed below:
Consumer Lending: New ways for consumers to obtain personal loans and have their credit risk assessed. Examples includes peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services.
Business Lending: New ways for companies to raise debt financing and have their credit risk assessed. Examples Include peer-to-peer lending platforms, asset-based lines of credit, micro-financing, and big data risk analytics.
Personal Finance: New ways for consumers to manage their personal finances. Examples include tools for tracking expenses, managing a budget, addressing wrongful credit card charges, and optimizing credit card rewards.
Consumer Payments: Payment companies centered around issuers and consumers. Examples include mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.
Payments Backend and Infrastructure: Payment companies centered around acquirers and the infrastructure enabling payments. Examples include payment solutions for e-commerce merchants, online payment gateways, ACH, direct deposits, and payment back-ends for mobile apps.
Point of Sale Payments: Payment companies centered around acquirers, providing physical payment solutions for brick-and-mortar businesses and organizations. Examples include mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).
Equity Financing: News ways for private companies to raise capital in exchange for equity and for investors to participate in private securities markets. Examples include crowdsourcing platforms and secondary market solutions.
Retail Investing: New ways for consumers to invest in various securities. Examples include theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.
Small and Medium Business Tools: Tools that help small and medium sized businesses manage their finances. Examples include tools for taxes, payroll, invoicing, and accounting.
Institutional Investing: New ways for wealth managers, hedge fund managers, and professional traders to manage their portfolios and optimize returns. Examples include tools for stock sentiment analysis, alternative investment platforms, and algorithmic trading tools.
Banking Infrastructure: Solutions that improve the operations of financial institutions. Examples include API integration with banks, white-label mobile solutions, and big-data analytics.
Financial Transaction Security: New ways for companies to secure transactions, authenticate users, and prevent fraud. Examples include identify verification, big data analytics, and fraud detection algorithms.
Crowdfunding: New ways for companies to raise non-equity and non-debt financing. Examples include crowdfunding platforms for products, social causes, and creative projects.
Consumer and Commercial Banking: New ways for consumers and SMBs to interface with banking services. Examples include Internet-only banking services and virtual credit cards.
International Money Transfer (Remittances): Companies that allow businesses and individuals to send money abroad easily and cheaply. Examples include digital-only remittances, mobile top-off services, and gift cards.
Financial Research and Data: Information services that enable investors to make better investment decisions. Examples include news, research, and data sources.
2. Company Count by FinTech Category
The above graph summarizes the number of companies in each FinTech category to show which categories are dominating the current market. The Consumer Lending category is leading the way with 198 companies, followed by the Personal Finance and Business Lending categories, each with 148 companies.
3. Funding by FinTech Category
The above graph summarizes the total amount of funding in each FinTech category. The Consumer Lending category is leading the market with over $12B in total funding, which is 1.5X the total funding of the second highest category, Business Lending.
4. Venture Investing in FinTech
The above graph compares the total venture funding in each FinTech category to the number of companies in the category. The Consumer Lending category is leading in both stats with over $12B in funding and 198 companies. Business Lending is the runner-up with $8B funding, and has the second-highest company count along with Personal Finance (148).
5. FinTech Total Funding by Year
The above graph summarizes the total funding raised by FinTech companies each year. 2015 was the best year in FinTech funding with a total of $12B raised, which is 1.5X the amount of funding raised in 2014 ($8B).
6. Average Funding by FinTech Category
The above graph summarizes the average company funding in each FinTech category. The Consumer Lending category leads the market with $100M funding per company, followed by the Business Lending category at a close second with $92M funding per company.
7. Average Age by FinTech Category
The above graph summarizes the average age of companies in each FinTech category. Banking Infrastructure ranks as the most mature FinTech category with an average age of 8 years per company, which is twice the average age as the least mature category, Equity Financing (4 years per company).
8. Median Age by FinTech Category
The above graph summarizes the median age of companies in each FinTech category. Banking Infrastructure ranks as the most mature FinTech category with a median age of 7 years per company, followed by Financial Security and Business Payments, each with a median age of 6 years per company.
9. FinTech Company Count by Country
The above map shows the number of FinTech companies located in different countries. The United States ranks as the top country with 756 FinTech companies, with the United Kingdom at a distant second with 161.
10. FinTech VC Funding by Country
The above map shows the amount of FinTech venture capital funding in different countries. The United States has the most FinTech VC funding at $13B, followed by the United Kingdom at $6B.
11. FinTech Companies Founded by Year
The above graph summarizes the number of FinTech companies founded in a certain year. 2012 ranks as the top year with 186 FinTech companies founded, followed by 2013 with 158 companies founded.
12. FinTech Funding by Vintage Year
The above graph summarizes the total amount of funding raised by the FinTech companies founded in a certain year. FinTech companies founded in 2011 have raised the most funding at $6.2B, followed by those founded in 2012 with $4.6B funding to date.
13. FinTech Headcount Distribution
The above graph summarizes the percentage of FinTech companies with a certain employee headcount range. Companies with 1–50 employees make up 73% of the market.
14. Number of FinTech Investments by Selected Investors
The above graph summarizes the total number of investment rounds FinTech investors participated in. Accel outperform all of its peers, having made 79 investments into FinTech companies. This is almost 2X the number of investments made by the runner-up Sequoia Capital with 45 investments.
15. Number of FinTech Companies Backed by Selected Investors
The above graph summarizes the number of unique FinTech companies funded by selected investors. Accel takes the top spot by having invested in a total of 54 unique FinTech companies, which is almost 1.5X the number of companies invested by the runner-up, Y Combinator (37 companies).
As FinTech continues to grow, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.
Venture Scanner is your platform for startup landscapes, data, and research. If you would like access to the full FinTech landscape and dataset, visit www.venturescanner.com or reach out to [email protected].
! Awesome stuff thanks Buddy!
