CB Insights Pulse of Fintech Aug2016 Webinar

TRENDS IN FINTECH
Analyzing fintech investment trends in the first half of 2016
#FINTECH
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ABOUT KPMG
KPMG Enterprise
You know KPMG, you might not know KPMG Enterprise.
KPMG Enterprise advisers in member firms around the world are dedicated to working with businesses like yours. Whether youre an entrepreneur looking
to get started, an innovative, fast growing company, or an established company looking to an exit, KPMG Enterprise advisers understand what is important
to you and can help you navigate your challenges no matter the size or stage of your business. You gain access to KPMGs global resources through a
single point of contact a trusted adviser to your company. Its a local touch with a global reach.
The KPMG Enterprise global network for innovative startups has extensive knowledge and experience working with the startup ecosystem. Whether you
are looking to establish your operations, raise capital, expand abroad, or simply comply with regulatory requirements - we can help. From seed to speed,
were here throughout your journey.
KPMG Fintech
In todays fast-paced Financial Services(FS) sector, technology-based businesses and solutions offer Financial Institutions the opportunity to telescope
their appetite for innovation and create powerful new business models that can enhance bottom line performance for customers andshareholders alike.
KPMG professionals use the combined strength of our renowned FS sector insight, global network of knowledge and experience and our global
relationships with the fintech startup community to help you identify the partnership, equity investment or full acquisition opportunities that are specifically
focused on your needs and opportunities.
Once you have made the strategic decision to transform your organization, KPMG professionals work with you to implement your transformational agenda
at the operational level and help ensure that you realize the full benefits of your fintech strategy.
#FINTECH
www.cbinsights.com
The technology market

intelligence platform.
CB Insights software lets you predict, discuss and
communicate emerging technology trends using data
in ways that are beyond human cognition.
#FINTECH
www.cbinsights.com
A FEW OF OUR HAPPY CUSTOMERS

The most publicly reference-able customers of anyone in the industry
With CB Insights we can quickly and reliably

aggregate data across the investing landscape,
from sector trends to financing activity. The
intuitive user interface and robust set of features
have made it a go-to resource for our team, and the
customer support is second to none...
Kate Barrett
Director, New Enterprise Associates
See what other customers have to say at http://www.cbinsights.com/customer-love #FINTECH
www.cbinsights.com
ABOUT THE PRESENTER

Matthew Wong
Senior Analyst, CB Insights
Published analysis and research has been featured in The New
York Times, The Wall Street Journal, The Financial Times,
Bloomberg and CNBC.
Launched CB Insights insurance tech newsletter, which covers
startup and tech trends in the global insurance industry and
reaches 10,000+ (re)insurance execs, investors and startup
founders.
Graduate of Northwestern University, magna cum laude.
@mlcwong
mwong@cbinsights.com
#FINTECH
www.cbinsights.com
ABOUT THE PRESENTER

Murray Raisbeck
Partner, Financial Services, KPMG UK
Works with global financial services clients in the insurance, asset
management, and wealth management industries.
Murrays advisory experience includes finance change and
regulatory programs, Sarbanes Oxley implementation projects,
accounting advice on group reconstructions, Part VII transfers, and
a variety of transactions.
@murrayraisbeck
murray.raisbeck@kpmg.co.uk
#FINTECH
www.cbinsights.com
IN THE NEXT 30-35 MINUTES, WELL COVER

1
Spotlight: InsurTech
Macro trends in the global fintech landscape
Fintech investment trends: North America
Fintech investment trends: Europe
Fintech investment trends: Asia
#FINTECH
www.cbinsights.com
SPOTLIGHT:
INSURTECH
#FINTECH
www.cbinsights.com
10
Low levels of consumer trust, high

competition, declining profitability and
challenges around legacy IT systems make
the insurance industry ripe for disruption.
InsurTech is increasingly enabling insurers to
solve these issues through new and emerging
applications in P2P, blockchain, IoT, and
SaaS.
Murray Raisbeck
Subject Matter Expert InsurTech, KPMG UK
#FINTECH
www.cbinsights.com
11
INSURTECH INVESTMENT ACTIVITY

Top Deals & Cities, 2016 (YTD)
Top Deals
Oscar Health
$400M // Series C
Clover Health
$160M // Series C
Bright Health
$80M // Series A
Justworks
$33M // Series C
Top Cities
San Francisco
8 Deals // $213M
New York
Source: The Pulse of Fintech, Q2 2016, Global Analysis of Fintech Venture Funding, KPMG International and CB Insights (data provided by CB Insights) August 17th, 2016.
#FINTECH
5 Deals // $467M
www.cbinsights.com
12
TOP 20 INSURTECH DEALS IN FIRST HALF OF 2016 TOTALED OVER

$980M
#FINTECH
www.cbinsights.com
13
INSURTECH DEAL ACTIVTY SEES MID-STAGE DEAL FLOW GROW

While still a nascent sector, InsurTech has seen Series B and Series C deal share hit a combined 32% in the first half of 2016 and in 2015.
Seed and Series A deals in InsurTech have continued to take 50%+ of overall share in 2016 YTD.
#FINTECH
www.cbinsights.com
14
Australia
Select country
Australia
Canada
China/Hong Kong
France
IAG Labs - featuring two labs focused on

customer and digital innovations
Stone & Chaulk - a KPMG partner whose
overarching objective is to foster and accelerate
the development of world-leading Fintech startups
Germany
Netherlands
Singapore
UK
US
kpmg.com/insuranceinnovates
2016 KPMG International Cooperative (KPMG International). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Canada
Desjardins Innovation Lab - opened December
2015 in Montreal. The lab will be used to
analyze, develop and test applications and new
technologies
Manulife has partnered with MaRS Discovery
District - collaborate with innovators and
startups on forward-thinking solutions. Manulife
will be a part of MaRS' FinTech Cluster
Select country
Aviva Canada - opened a 'Digital Garage' in

Toronto and is the first insurer in Ontario to offer
a ride-share policy to Uber
Australia
Canada
China/Hong Kong
France
Germany
Netherlands
Singapore
UK
US
China/Hong Kong
China
AXA Lab Asia - Shanghai
PingAn Venture - VC arm with focused interest
in emerging innovation start-ups. It is committed
to driving success by provision of both funds
and managerial expertise, resources and a
platform. Recently launched USD $157 million
fund to invest in US and Israeli tech ventures
Select country
Hong Kong
Australia
AXA launched Kamet - 100m InsurTech

incubator dedicated to conceptualizing,
launching and accompanying disruptive
products and services for insurance clients
Canada
China/Hong Kong
France
Germany
Netherlands
Singapore
UK
US
AIA Accelerator powered by NEST - is program

for start-ups to accelerate their health tech
and/or wearable businesses
AXA Strategic Venture Center (opening soon) to invest in innovations in insurance, asset
management, FinTech and healthcare
US
Solaria Labs - an in-house incubator opened in
2016 by Liberty Mutual in the WeWork shared
office space in Boston
AXA Labs - one of the first to open, based in
Silicon Valley
Blue Marble Microinsurance incubator - a
consortium of 8 global insurers focused on
developing risk protection in the developing
world
Select country
Australia
Canada
China/Hong Kong
France
Germany
Netherlands
Singapore
UK
US
MunichRe/Hartford SteamBoiler Ventures focus areas: new insurance business models,

internet of things, cyber security, energy, big
data / analytics
Manulife/John Hancock - Lab of Forward
Thinking(LOFT), based in Boston and Toronto
AHIP innovation lab - opened in Chicago in 2015
by America's Health Insurance Plans to test new
healthcare and wellness ideas
Ping An Ventures - takes equity stake in 20/20
GeneSystems, based in Rockville, Maryland, to
accelerate commercialization of lung cancer test
in China
Germany
France
Netherlands
UK
Select country
Australia
Canada
China/Hong Kong
France
Allianz
Digital
to
AXA Factory
- Accelerator
a program
to- aims
accelerate
growth of
AEGON
and Garage
HCL
Technologies
opened
Aviva
Digital
- opened
2014
in London
develop
innovative
business
ideas
that
can
have
FinTech
and
InsurTech
start-ups
cXStudio
a joint
venture
totoimprove
customer
to
develop- new
digital
tools
meet changing
an
impact onand
a global
scalethe
anddigital
ultimately
better
satisfaction
accelerate
channel
AXA Data
Innovation
Lab
- aofjoint
research
customer
needs
(video)
serve
and
improve
the
lives
insurance
experience.
initiative to worldwide
understand and enhance trust in data
customers
KPMG
Insights
Lab - a virtual R&D centre
sharing
opened in 2014 to incubate data-driven solutions
Allianz Digital Labs - focuses in the areas of big
data, mobile,
socialInsurTech
media and
sponsorships.
Startup
Bootcamp
- provides
relevant
Seeks innovation
partnersmentorship
to run proof-ofstart-ups
with the funding,
and office
concept
with
the possibility
of eventual
space
to pilots
design
unique
propositions
that meet
licensing,
development
and
commercialization
the needs of the insurance market
on a large scale.
Germany
Netherlands
Singapore
UK
US
ASEAN
Singapore
Aviva Digital Garage - opened in 2015, an
extension of their global digital first strategy
Select country
Australia
Canada
China/Hong Kong
France
Germany
Netherlands
Singapore
UK
US
MetLife LumenLab - creating new businesses in

health, wealth and retirement through innovative
new products and services grounded in
technology and data
EDGE LAB - AIA and NTU Singapore brings
together start-ups, Government agencies,
university experts and private sector
collaborators to drive innovation in the life
insurance sector
AXA Data innovation lab - a business-focused
center of expertise on data analytics to foster
research and development for AXAs offerings
and services
Netherlands
Select country
Australia
AEGON and HCL Technologies opened

cXStudio - a joint venture to improve customer
satisfaction and accelerate the digital channel
experience.
Canada
China/Hong Kong
France
Germany
Netherlands
Singapore
UK
US
Germany
Select country
Australia
Canada
China/Hong Kong
France
Germany
Allianz Digital Accelerator - aims to

develop innovative business ideas that can have
an impact on a global scale and ultimately better
serve and improve the lives of insurance
customers worldwide
Allianz Digital Labs - focuses in the areas of big
data, mobile, social media and sponsorships.
Seeks innovation partners to run proof-ofconcept pilots with the possibility of eventual
licensing, development and commercialization
on a large scale.
Netherlands
Singapore
UK
US
France
AXA Factory - a program to accelerate growth of
FinTech and InsurTech start-ups
Select country
AXA Data Innovation Lab - a joint research

initiative to understand and enhance trust in data
sharing
Australia
Canada
China/Hong Kong
France
Germany
Netherlands
Singapore
UK
US
INSURTECH LANDSCAPE
A vast and growing number of companiesfocused on a wide
range of issues and opportunities
#FINTECH
www.cbinsights.com
24
INSURTECH LANDSCAPE
And across the value chain.
Additionally, there are many startups that cut across traditional industry categories.
#FINTECH
www.cbinsights.com
25
STATE OF FINTECH:
MACRO TRENDS IN THE GLOBAL FINTECH
LANDSCAPE
#FINTECH
www.cbinsights.com
26
In Q216, VC-backed fintech companies raised:
$2.5 BILLION
across
195 DEALS
Overall fintech investment reached $9.4B
#FINTECH
www.cbinsights.com
27
$2.5B TO VC-BACKED FINTECH COMPANIES; $9.4B TO FINTECH

OVERALL
VC-backed fintech funding took just 27% of the $9.4B in overall fintech funding. The overall funding figure included a large $4.5B round to
Alibabas financial services arm Ant Financial. VC-backed fintech took over half of overall fintech deal activity.
#FINTECH
www.cbinsights.com
28
Q216 SEES VC-BACKED FINTECH FUNDING; DEALS DROP

Funding to VC-backed fintech companies dropped 49% on a quarterly basis in Q216, while deal activity fell 12% from Q116s total.
#FINTECH
www.cbinsights.com
29
FINTECH MEGA-ROUNDS IN NORTH AMERICA FALL; ASIA STAYS LEVEL;

EUROPE DRAWS A BLANK
$50M+ rounds to VC-backed fintech companies in North America fell from nine in Q116 to 5 in Q216. Asia saw $50M+ fintech rounds stay
level for the third straight quarter, while Europe has not registered a $50M+ round to a VC-backed fintech company in 2016 to date.
#FINTECH
www.cbinsights.com
30
CORPORATES PARTICIPATE IN NEARLY ONE THIRD OF FINTECH DEALS

Corporate participation in VC-backed fintech deals rose to the 5-quarter high and surpassed the 30% mark in Q216 to hit 32% compared to 23% in
Q215.
#FINTECH
www.cbinsights.com
31
GOLDMAN SACHS, CITIGROUP, BANCO SANTANDER LEAD BIGGEST

BANKS BY FINTECH INVESTMENTS
Over the past 5 quarters, Goldman Sachs, Citigroup and Banco Santander or their corporate venture units, have each completed seven or
more deals to VC-backed fintech companies.
#FINTECH
www.cbinsights.com
32
WHERE FINTECH ON MOBILE IS HEADED NEXT
#FINTECH
www.cbinsights.com
33
CHAT BOT CRAZE HAS HIT FINANCIAL SERVICES
#FINTECH
www.cbinsights.com
34
MORE CROSS-BORDER INVESTMENT INTO U.S. FINTECH COMPANIES
#FINTECH
www.cbinsights.com
35
MORE CROSS-BORDER INVESTMENT INTO U.S. FINTECH COMPANIES
#FINTECH
www.cbinsights.com
36
FINTECH UNICORN DOWNROUNDS? NEW UNICORNS? EXITS?
#FINTECH
www.cbinsights.com
37
FINTECH TRENDS:
NORTH AMERICA
#FINTECH
www.cbinsights.com
38
FINTECH FUNDING AND DEALS IN NORTH AMERICA DROP IN Q216

Deal activity to VC-backed North American fintech companies in Q216 dropped 25% on a quarterly basis. Fintech funding fell 28% from
Q116 to hit $1.3B in Q216.
#FINTECH
www.cbinsights.com
39
EARLY-STAGE FINTECH DEAL SIZES HIT 5-QUARTER HIGH

Median early-stage fintech deals were $4.6M in Q216, hitting a 5-quarter high and 53% increase over Q116.
#FINTECH
www.cbinsights.com
40
NORTH AMERICA SEED DEAL SHARE FALLS TO 5-QUARTER LOW

In Q216, seed activity took 22% of all fintech deals in North America, a 5-quarter low. VC-backed Series B fintech deal share fell from 14% in
Q116 to 11% in Q216.
#FINTECH
www.cbinsights.com
41
CORPORATE DEAL SHARE OF VC-BACKED NORTH AMERICAN FINTECH

RISES TO 5-QUARTER HIGH
Corporates played a larger role in deals to North American VC-backed fintech companies in Q216, participating in 30% of all fintech deal
activity, up from 23% in Q116.
#FINTECH
www.cbinsights.com
42
THE MOST ACTIVE VC INVESTORS IN NORTH AMERICAN FINTECH

Nyca Partners, General Catalyst Partners, and Khosla Ventures were the top 3 most active fintech investors in North America over the last
5-quarters by unique company investments.
#FINTECH
www.cbinsights.com
43
CALIFORNIA VC-BACKED FINTECH INVESTMENT ACTIVITY

Top Deals & Cities, Q216
#FINTECH
www.cbinsights.com
44
NEW YORK VC-BACKED FINTECH INVESTMENT ACTIVITY

#FINTECH
www.cbinsights.com
45
FINTECH TRENDS:
EUROPE
#FINTECH
www.cbinsights.com
46
FINTECH FUNDING IN EUROPE HITS 3-QUARTER HIGH

Q216 saw fintech deal activity remain nearly level with Q116. Fintech funding in Europe rose 22% on a quarterly basis with $369M invested
in Q216.
#FINTECH
www.cbinsights.com
47
EARLY-STAGE ACCOUNTS FOR 65% OF EUROPE FINTECH DEAL SHARE IN

Q216
Seed deal share in European fintech companies rose to 37% in Q216 after dropping to 32% in Q116. Series A deal share rose for the fourth
consecutive quarter to more than 1/5 of all European fintech deals in Q216.
#FINTECH
www.cbinsights.com
48
CORPORATE PARTICIPATION IN EUROPE FINTECH DEALS RISES TO 5QUARTER HIGH

Corporate participation in the number of European fintech deals rose for the second straight quarter to 28% in Q216, compared to 12% in
the same quarter last year.
#FINTECH
www.cbinsights.com
49
THE MOST ACTIVE EUROPEAN FINTECH INVESTORS

Index Ventures, Seedcamp, and High-Tech Gruenderfonds were the most active VCs in European fintech over the last 5 quarters.
#FINTECH
www.cbinsights.com
50
UK VC-BACKED FINTECH INVESTMENT ACTIVITY

#FINTECH
www.cbinsights.com
51
GERMANY VC-BACKED FINTECH INVESTMENT ACTIVITY

#FINTECH
www.cbinsights.com
52
FINTECH TRENDS:
ASIA
#FINTECH
www.cbinsights.com
53
ASIA DEAL ACTIVITY TO VC-BACKED FINTECH COMPANIES HITS 5-QUARTER

HIGH
Asian fintech startups saw funding total $772M in Q216, a decrease of 71% from Q116 primarily due to two Q116 mega-rounds in China.
Deal activity to VC-backed fintech companies reached a 5-quarter high in Q216 with 46 deals recorded.
#FINTECH
www.cbinsights.com
54
ASIA FINTECH EARLY-STAGE DEAL SHARE REMAINS DOMINATE IN Q216

Early-stage VC-backed fintech companies in Asia accounted for 61% of deal share. Mid-stage deal share at the Series B and Series C stage
took 30% of Q216 fintech deal share in Asia.
#FINTECH
www.cbinsights.com
55
ASIA CORPORATE ACTIVITY REBOUNDS IN Q216

Corporate participation in Asian VC-backed fintech deals rebounded to 39% in Q216 from 31% in Q116. Corporates saw slightly less deal
share in Q216 than the same quarter last year when corporates participated in 41% of Asian fintech deals.
#FINTECH
www.cbinsights.com
56
THE ACTIVE ASIAN FINTECH VC INVESTORS

500 Startups, Sequoia Capital China, and East Ventures were the top three most active Asian fintech VCs over the last 5 quarters by unique
company investments.
#FINTECH
www.cbinsights.com
57
CHINA VC-BACKED FINTECH INVESTMENT ACTIVITY

#FINTECH
www.cbinsights.com
58
THE BREADTH OF ANT FINANCIAL
Source: Ant Financial
#FINTECH
www.cbinsights.com
59
INDIA VC-BACKED FINTECH INVESTMENT ACTIVITY

#FINTECH
www.cbinsights.com
60
@murrayraisbeck
@mlcwong
QUESTIONS?
murray.raisbeck@kpmg.co.uk
mwong@cbinsights.com
#FINTECH
www.cbinsights.com
61
CBINSIGHTS.COM
@ cbinsights
+1(212)292-3148
#FINTECH

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TRENDS IN FINTECH

Analyzing fintech investment trends in the first half of 2016

WEBINAR RECORDING WILL BE DISTRIBUTED

JOIN THE CONVERSATION ON TWITTER

The technology market

A FEW OF OUR HAPPY CUSTOMERS

With CB Insights we can quickly and reliably

See what other customers have to say at http://www.cbinsights.com/customer-love #FINTECH

ABOUT THE PRESENTER

ABOUT THE PRESENTER

IN THE NEXT 30-35 MINUTES, WELL COVER

Macro trends in the global fintech landscape

Fintech investment trends: North America

Fintech investment trends: Europe

Fintech investment trends: Asia

Low levels of consumer trust, high

INSURTECH INVESTMENT ACTIVITY

TOP 20 INSURTECH DEALS IN FIRST HALF OF 2016 TOTALED OVER

INSURTECH DEAL ACTIVTY SEES MID-STAGE DEAL FLOW GROW

IAG Labs - featuring two labs focused on

Aviva Canada - opened a 'Digital Garage' in

AXA launched Kamet - 100m InsurTech

AIA Accelerator powered by NEST - is program

MunichRe/Hartford SteamBoiler Ventures focus areas: new insurance business models,

MetLife LumenLab - creating new businesses in

AEGON and HCL Technologies opened

Allianz Digital Accelerator - aims to

AXA Data Innovation Lab - a joint research

In Q216, VC-backed fintech companies raised:

$2.5B TO VC-BACKED FINTECH COMPANIES; $9.4B TO FINTECH

Q216 SEES VC-BACKED FINTECH FUNDING; DEALS DROP

FINTECH MEGA-ROUNDS IN NORTH AMERICA FALL; ASIA STAYS LEVEL;

CORPORATES PARTICIPATE IN NEARLY ONE THIRD OF FINTECH DEALS

GOLDMAN SACHS, CITIGROUP, BANCO SANTANDER LEAD BIGGEST

WHERE FINTECH ON MOBILE IS HEADED NEXT

CHAT BOT CRAZE HAS HIT FINANCIAL SERVICES

MORE CROSS-BORDER INVESTMENT INTO U.S. FINTECH COMPANIES

MORE CROSS-BORDER INVESTMENT INTO U.S. FINTECH COMPANIES

FINTECH UNICORN DOWNROUNDS? NEW UNICORNS? EXITS?

FINTECH FUNDING AND DEALS IN NORTH AMERICA DROP IN Q216

EARLY-STAGE FINTECH DEAL SIZES HIT 5-QUARTER HIGH

NORTH AMERICA SEED DEAL SHARE FALLS TO 5-QUARTER LOW

CORPORATE DEAL SHARE OF VC-BACKED NORTH AMERICAN FINTECH

THE MOST ACTIVE VC INVESTORS IN NORTH AMERICAN FINTECH

CALIFORNIA VC-BACKED FINTECH INVESTMENT ACTIVITY

NEW YORK VC-BACKED FINTECH INVESTMENT ACTIVITY

FINTECH FUNDING IN EUROPE HITS 3-QUARTER HIGH

EARLY-STAGE ACCOUNTS FOR 65% OF EUROPE FINTECH DEAL SHARE IN

CORPORATE PARTICIPATION IN EUROPE FINTECH DEALS RISES TO 5QUARTER HIGH

THE MOST ACTIVE EUROPEAN FINTECH INVESTORS

UK VC-BACKED FINTECH INVESTMENT ACTIVITY

GERMANY VC-BACKED FINTECH INVESTMENT ACTIVITY

ASIA DEAL ACTIVITY TO VC-BACKED FINTECH COMPANIES HITS 5-QUARTER

ASIA FINTECH EARLY-STAGE DEAL SHARE REMAINS DOMINATE IN Q216

ASIA CORPORATE ACTIVITY REBOUNDS IN Q216

THE ACTIVE ASIAN FINTECH VC INVESTORS

CHINA VC-BACKED FINTECH INVESTMENT ACTIVITY

THE BREADTH OF ANT FINANCIAL

Source: Ant Financial

INDIA VC-BACKED FINTECH INVESTMENT ACTIVITY

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