Chris Skinner's blog

Shaping the future of finance

Who said Fintech is dead? Q1 sees $5.7bn invested

Chris Skinner Author Avatar

I was just sent a press pre-release copy of The Pulse of Fintech, the quarterly global report on Fintech VC trends published jointly by KPMG International and CB Insights.  The findings are quite interesting this quarter and show that, after a significant pullback in funding in Q4 2015, mega funding rounds have lifted quarterly investment into VC-backed fintech companies by over 150 percent in the first quarter of 2016.


Key highlights from the Pulse of Fintech include:

  • Q1 2016 saw a big rebound in funding to the Fintech sector, with total investment in fintech companies hitting US$5.7 billion. Globally, VC-backed fintech companies drew US$4.9 billion in funding, rising from just US$1.9B in Q4’15.
  • VC-backed deal activity rose dramatically quarter over quarter. Q4 2015 saw Fintech deal activity fall to the lowest point since Q2 2014. This drop reversed course in a big way in Q1 2016 as VC-backed fintech deals rose to a new quarterly high of 218 globally.
  • Larger deals spurred fintech funding growth in Q1 2016. Q1 2016 saw thirteen $50M+ rounds to VC-backed Fintech companies, a slight rise from the ten $50M+ rounds in Q4 2015, but a drop from the eighteen mega-rounds in Q1 2015.
  • Asia saw funding to VC-backed Fintech companies jump to US$2.6B in Q1 from just US$0.5B in Q4. This dramatic rise came on the back of the $1B+ mega-rounds to JD Finance and Lu.Com.


North America sees funding bounce back

North America saw both fintech funding and deals rebound following a major drop in Q4 2015, as VC-backed fintech companies raised US$1.8B across 128 deals, an increase of 80 percent in funding quarter-over-quarter. Deal activity to VC-backed fintech companies in North America is on pace to reach a new high in 2016 at the current run rate, as the 128 fintech deals registered over the three-month period was the largest quarterly total since Q2 2015.

Chinese mega-rounds propel Asia fintech funding

Following a drop off in Q4 2015, fintech investment in Asia reversed course in Q1 2016 to hit a new high of US$2.6B.  China accounted for $2.4B of Asia fintech funding and 49% of fintech funding across all geographies, primarily as a result of $1B+ funding rounds to JD Finance and

Europe fintech deals rise; no spike in funding

Europe saw VC-backed fintech deals reach a five-quarter high, rising from 37 in Q4 2015 to 47 in Q1 2016. European Fintech funding remained almost level with Q4 2015’s total at US$0.3B. UK funding rounds to WorldRemit and LendInvest pushed UK funding to account for over half of Europe’s fintech funding total.

Corporates participate in over 20 percent of deals for fifth straight quarter

Corporate investors continue to play a large role in the fintech ecosystem, with global deals to VC-backed Fintech companies standing at 24%+ in three of the past five quarters. Of note, Europe saw an upswing in corporate Fintech investment during Q1 2016 as corporate participation in deals to VC-backed fintech companies rose from 8% in Q4 2015 to 21% in Q1 2016.

KPMG and CB Insights will discuss findings from the Pulse of Fintech report, investment trends and key players in fintech during a live webinar on 31 May, 2016 at 11:00am EDT [register here] and you can find the full report over here.



Chris Skinner Author Avatar

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog,, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...

Intelligent Money: Our Future Is Where We Do Not Think About Money, As Our Money Thinks For Us

What is the future?

Learn more

Learn more about Chris

About Chris Skinner

The Past, Present And Future Of Banking, Finance And Technology

Fintech expert Chris Skinner: countries need digital transformation to remain competitive

Join me on Linkedin

Follow Me on X!

Hire Chris Skinner for dinners, workshops and more

Learn directly from from one of the most influential people in technology, gain insights from the world's most innovative companies, and build a global network.

Chris’s latest book

Order now

Chris Skinner’s ‘Intelligent Money’ Book Launch Event

Top 50 Global Thought Leaders and Influencers on FinTech 2023

Chris Skinner
Commentator, CEO of The Finanser and best-selling author at The Finanser

Thinkers360 Thought Leader

Contact Me

Global Awards

Lifetime Achievement Award

Global 100 - 2024 Winner

Chris Skinner - Financial Markets Advisor of the Year - The Finanser - UK 2023

Best Financial Markets Advisor of the Year 2023

30 Best Regtech Blogs and Websites 2023

Kids creating the future bank | TEDxAthens

Captain Cake and the Candy Crew

Captain Cake Winner of a Golden Mom’s Choice Award


Alex at the Financial Services

Gaping Void's Hugh MacLeod worked with the Finanser