Corporate investment in the fintech sector expected to double in 2015

By Nicole Miskelly | 1 June 2015

Investment in fintech has increased by 176% from 2010 to 2014 and the amount of investment is expected to double in 2015, according to data from CB Insights.

The fintech sector has gained a number of investments from both strategic and corporate investors over the last few years and according to CB Insights, in 2014 $1.4bn was invested into the booming fintech sector, across 110 deals, which included twelve $50m deals into companies such as Credit Karma and OnDeck capital. This year has already seen more than $700m invested into the sector with high-profile investments into mortgage lending platform, Lending home and bitcoin wallet, Coinbase.

CB Insights says that although financial players are making investments, some of the biggest investment is coming from technology companies. “While large financial players like banks and insurance providers are investing at a higher rate, the chart of most active corporate investors in Fin Tech is topped by tech companies,” CB Insights reports.

According to the data, the top investors in the fintech space are two of the world’s largest tech companies, Google and Intel. Google Ventures is the top investor and over the past four years has made 25 unique company investments into fintech. The second largest investor is Intel Capital who was the only other investor with more than 10 investments into the space.

Citi Ventures appears third, MasterCard Worldwide features at number four on the list, and American Express Ventures sits at number six, however, the most surprising of the non-financial players is Ebay which only appears at number seven on the list.

CB Insights says that Google has invested across a wide variety of financial service start-ups and particularly seem interested in the crowdfunding, trading tools, digital currency and back office software spaces after making at least three investments in each.

However, while Intel has been focused on payments tech/mobile payments and has made a number of large investments outside of the US into companies such as Swedish-based iZettle and Brazil-based Elike, Ebay has focused more on mobile commerce and ecommerce enablement and has only acquired two if its own investments (BillSafe and Magento).

 

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