A report providing an overview of the financial technology startup landscape, graphical trends and insights, and recent funding and exit events.

1. Venture Scanner is your analyst and technology-powered startup research firm
Financial Technology
Startup Landscape Trends and Insights
October 10, 2016

2. Financial technology report outline
2
This report provides an overview of the financial technology (fintech) sector
and is broken down into three sections
Sector Description
High-level sector metrics
with sub-category
definitions
Trends & Insights
Infographics and data
points around the
fintech sector
Quarterly Activity
Major funding and exit
events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our
startup database and landscaping platform

3. Financial Technology Sector Description
3

4. Financial
Technology
1,913 companies across 16
categories from 58 countries
with $53.3B in funding
Startups are creating new financial business lines and disrupting old ones
Lending Personal Finance Payments Equity Financing Remittances
Retail Investing Institutional Investing
Security Online Banking Research & DataCrowdfundingBusiness ToolsInfrastructure
The graphic above shows a sampling of companies in each category

5. Financial technology startups play in many different categories (1 of 2)
5
Banking Infrastructure
114 Startups, $1.5B Total Funding
Solutions that improve the operations of financial
back offices and between financial institutions.
Business Lending
181 Startups, $9.8B Total Funding
Alternative or streamlined ways for companies to
raise debt and have their credit risk assessed.
Consumer and Commercial Banking
66 Startups, $1.5B Total Funding
New ways for consumers and enterprises to interface
with digital banking services.
Consumer Lending
264 Startups, $16.7B Total Funding
Alternative or streamlined ways for consumers to
raise debt and have their credit risk assessed.
Consumer Payments
182 Startups, $9.5B Total Funding
Payment companies centered around issuers and
consumers, like mobile wallets and P2P payments.
Crowdfunding
68 Startups, $436M Total Funding
New ways for consumers and enterprises to raise
non-equity/non-debt financing.
Equity Financing
137 Startups, $738M Total Funding
Ways for companies to raise equity capital and for
investors to participate in private securities markets.
Financial Research and Data
79 Startups, $824M Total Funding
Information services that enable investors to make
better investment decisions.
Category stats as of October, 2016

6. Financial technology startups play in many different categories (2 of 2)
6
Financial Transaction Security
101 Startups, $1.6B Total Funding
Technologies to secure transactions, authenticate
users, and prevent fraud.
Institutional Investing
142 Startups, $781M Total Funding
Startups assisting professional traders in ways to
manage their portfolios and optimize returns.
International Money Transfer
59 Startups, $1.5B Total Funding
Companies that allow businesses and individuals to
send money abroad easily and cheaply.
Payments Backend and Infrastructure
181 Startups, $10.4B Total Funding
Payment companies centered around issuers/
acquirers and the infrastructure enabling payments.
Personal Finance
194 Startups, $2.7B Total Funding
Companies that help consumers track their personal
finances for budgeting optimization.
Point of Sale (POS) Payments
164 Startups, $7.6B Total Funding
Payment companies centered around acquirers,
providing physical payment solutions for businesses.
Retail Investing
150 Startups, $1.6B Total Funding
Ways for consumers to invest in various securities
using streamlined and new interfaces.
Small and Medium Business (SMB) Tools
183 Startups, $7.3B Total Funding
Tools that help SMBs manage their finances, payroll,
taxes, and accounting functions.
Category stats as of October, 2016

7. Financial Technology Trends & Insights
7

8. 8
Lending and Payments are dominating fintech startup activity
Within fintech, lending and payments categories account for 73% of all
venture funding and 43% of total startup companies
Total Venture Investing into Financial Technology
-
50
100
150
200
250
300
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
CompanyCount
TotalFunding($B)
VC Funding Count
Companies are categorized by function, and therefore can exist in multiple categories

9. 9
Funding into financial technology has grown rapidly
Overall fintech VC funding grew at a CAGR of 75% from 2010-2015, and
2016 is on pace to be the highest funding year ever
Financial Technology Funding Over Time
0
2
4
6
8
10
12
14
16
18
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)

10. 10
More fintech startups are starting to show traction
2016 has seen an expansion of Series B funding, implying that VCs are happy
enough with startup performance to provide follow on investments
Financial Technology Funding By Type Over Time
-
2
4
6
8
10
12
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Funding($B)
Late Stage Series D Series C Series B Series A Seed

11. 11
Mid-age fintech startups lead in VC funding
Since 2005, 34% of total fintech funding has gone into
startups founded in 2011 and 2012
Financial Technology Funding By Vintage Year
0
1
2
3
4
5
6
7
8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
TotalFunding($B)
Year Founded

12. 12
Financial technology startups are a global phenomenon
Financial Technology Startup Count by Country
0 >995
Companies

13. 13
Top VC investors are making bets in fintech categories
Selected Investor Activity in Financial Technology
The above count represents a subset of overall investor activity
0
10
20
30
40
50
60
70
NumberofInvestments
Number of Investments Number of Companies Backed

14. 14
M&A dominates the growing set of fintech exit activity
Exits within the fintech sector grew by 400% between 2010 and 2015, with
2016 on pace to be the year with highest amount of exits
Financial Technology M&A and IPO Events Over Time
0
5
10
15
20
25
30
35
40
45
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
NumberofExits
Public Acquired

15. Financial Technology Quarterly Update
15

16. 16
Recent financial technology funding events
There have been 162 funding events in the past 90 days,
providing $3.4 billion in capital
Funding Statistics from Last 90 Days*
Company Amount Funding Type
$449,000,000 Series F
$310,000,000 Series C
$300,000,000 Debt Financing
$220,000,000 Private Equity
$180,000,000 Series E
Notable Recent Fintech Funding Events
0
5
10
15
20
25
30
35
Seed Series
A
Series
B
Series
C
Series
D
Late
Stage
FundingEventCount
*Graph shows only the funding types listed therein

17. 17
Recent financial technology exit events
There have been 15 fintech exit events in the past 90 days,
consisting of 12 acquisitions and 3 IPOs
Notable Recent Financial Technology Acquisitions
Company Acquirer Amount Date
$460,000,000 Oct 3, 2016
$130,000,000 Sept 14, 2016
$42,800,000 July 13, 2016
$40,000,000 Sept 30, 2016
$7,300,000 Sept 29, 2016

18. About Venture Scanner
18

19. Venture Scanner is the foundation of your startup research
19
Our research and data keep you ahead of the
financial technology innovation curve
Save Time and Money
Get immediate access to
years of startup research
Leverage Technology
Realize the power of our
landscaping technology
Stay Current
See all updates and
developments
Many international Fortune 500 companies trust Venture Scanner
to help them with their startup landscaping and reporting needs

20. Venture Scanner is your analyst and technology-powered startup research firm
Contact info@venturescanner.com to learn more