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Investment remains strong as startups mature
The fintech landscape has entered a new era. After a short period marked by an explosion in new startups and little investment, the tables have turned.
February 14, 2018
A blog post by Jim Eckenrode, executive director, Deloitte Services LP.
These are the headlines among a series of findings from a recent report from Deloitte’s Center for Financial Services, entitled Fintech by the numbers. For the report, we looked at data about technology startups offering products or services in the financial services industry (broadly, “
What we found, broadly, was evidence that clearly pointed to the emergence of a new era in the
Figure 1: Fintech companies founded by year (2008–2017 year to date).
Investment interest, however, has not seen a similar drop-off. To the contrary, the amount of new investment in
The United States and China: Hotbeds for fintech investment
The most interesting geographic dichotomy is found in the contrast between the two biggest hotbeds for
A good example here is in the payments category. In the United States, 264 companies have received a total of $7.71 billion in investment since 1998, but mostly within the past five years as mentioned above. Contrast that with China, where only seven payment
These statistics are presented against a backdrop that suggests a different kind of sea change in the
We conclude the report with steps firms should be taking now to succeed in fintech collaboration. But we plan to go further. We are now developing a follow-on publication that examines the state of collaboration between incumbents, fintechs, and incubators to understand at a more granular level what’s working, and what’s not. Be on the lookout for the release of that report later this spring. In the meantime, we hope you enjoy Fintech by the numbers.
Let us know what you think. Follow the conversation on Twitter @DeloitteFinSvcs.
Were any of the statistics a surprise to you? Has it changed your thinking about the
1 R. Jesse McWaters and Rob Galaski, “Beyond Fintech: a pragmatic assessment of disruptive potential in financial services,” World Economic Forum, August 22, 2017.
QuickLook is a weekly blog from the Deloitte Center for Financial Services about technology, innovation, growth, regulation, and other challenges facing the industry. The views expressed in this blog are those of the blogger and not official statements by Deloitte or any of its affiliates or member firms.