Global Fintech Report Q1 2019

Q1’19 VC-backed fintech funding dropped but deals remain strong: In the first 3 months of 2019, VC-backed fintech companies raised $6.3B across 445 deals globally. Deals were up 4% quarter-over-quarter (QOQ) while funding dipped 13%.
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About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
VC back Fintech Fintech Fund deal bank venture Select Investor
1
Global Fintech Report Q1 2019
2
WHAT I S  CB  INS IGHTS?
CB Insights is a tech market intelligence 
platform that analyzes millions of data 
points on venture capital, startups, patents, 
partnerships and news mentions to help 
you see tomorrow’s opportunities, today.
cb in s igh t s . com
3
T R U S T E D  B Y  T H E  WO R L D ’ S  L E A D I N G  C OMPAN I E S
“We use CB Insights to find emerging trends 
and interesting companies that might signal a shift in 
technology or require us to reallocate resources.”
Beti Cung, Corporate Strategy, Microsoft
4
June 11 - 13, 2019
New York, NY
events.cbinsights.com/future-of-fintech
5
events.cbinsights.com/future-of-insurance
6
Contents
9
Q1’19 Financing Trends
Quarterly Deals & Dollars
Regional Trends
Q1’19 Top VC-Backed Fintech Deals
Fintech Unicorns
21
64
Q1’19 Fintech Sector Trends
Appendix: 
Major markets financing trends
Most Active Fintech Investors Q1’18 - Q1’19
Methodology 
7
India challenges China for the top Asian fintech market: India was the top 
Asian market for VC-backed fintech funding in Q1’19 with $286M in 
funding, narrowly surpassing China. China saw funding fall to $192M, a 89% 
drop QOQ. India and China both saw 29 deals.
In Q1’19, Europe beat Asia in funding and the US remained the top market 
for deals with 170 investments worth $3.3B: Europe saw funding grow to 
$1.7B, surpassing Asia which saw $875M in funding in Q1’19. Asia saw 127 
deals, beating out Europe. 
Q1’19 saw record M&A deals between payment incumbents, more fintech 
mega-rounds to support staying private, and lackluster IPO activity: The 
quarter saw 2 record-breaking acquisitions between payment incumbents: 
Fiserv acquired First Data for $41B in January and FIS acquired Worldpay 
for $43B in March. Q1’19 saw 13 $100M+ financing deals to VC-backed 
fintech companies. Q1’19 only had 1 unicorn IPO with Tiger Brokers. 
Note: This report focuses on equity rounds to VC-backed fintech companies. This report does not cover 
companies funded solely by angels, private equity firms, or any debt, secondary, or line of credit 
transactions. All data is sourced from CB Insights.
Summary of findings
Q1’19 VC-backed fintech funding dropped but deals remain strong: In the 
first 3 months of 2019, VC-backed fintech companies raised $6.3B across 
445 deals globally. Deals were up 4% quarter-over-quarter (QOQ) while 
funding dipped 13%. 
Asia saw funding fall as a result of tighter regulatory oversight in China: 
Fintech funding in Asia fell below $1B for the first time in five quarters. 
Funding dropped to $875M, a 67% drop QOQ. Deals grew to 127 supported 
by strong growth in India, which saw 29 deals.
Late-stage deal share grew to a 5-quarter high as investors continued to 
concentrate bets in perceived winners: Global Series D and Series E+ 
fintech deals grew to 8% in Q1’19. US early-stage deal share was flat QOQ 
as investors continued to concentrate their bets in established fintech 
unicorns.
There are 41 VC-backed fintech unicorns worth a combined $154.1B: 
Q1’19 saw three new unicorn births (N26, Chime, and Airwallex) and three 
in the first month of Q2’19 (Bill.com, Liquid, and Lemonade). The cohort’s 
total valuation in 2019 continues to grow as a result of continued mega-
rounds to existing unicorns, including Klarna and Stripe, among others.
8
LENDING
BLOCKCHAIN/ 
CRYPTO
REGTECH
PERSONAL 
FINANCE
PAYMENTS/ 
BILLING
MONEY 
TRANSFER/ 
REMITTANCES
WEALTH 
MANAGEMENT
CAPITAL 
MARKETS
MORTGAGE/ 
REAL ESTATE
INSURANCE
GLOBAL FINTECH 
REPORT Q1’19
Marketplace lending & alternative 
underwriting platforms
Payments processing, card developers, 
& subscription billing software tools 
Tools to manage bills and track 
personal and/or credit accounts
Audit, risk, and regulatory 
compliance software
Companies leveraging blockchain 
technologies for financial services
Companies selling insurance digitally or providing 
data analytics and software for (re)insurers
Sales & trading, analysis, and infrastructure 
tools for financial institutions
Investment and wealth management 
platforms and analytics tools
International money transfer 
and tracking software
Mortgage lending, digitization, 
and financing platforms
WHAT THIS  REPORT COVERS
9
$16.5 
$19.4 
$18.3 
$40.3 
$6.3 
1,191 
1,304 
1,564 
1,829 
445
2015
2016
2017
2018
2019
Global fintech funding hit $6.3B in Q1’19
Annual global VC-backed fintech deals and financing, 2015 – Q1’19 ($B) 
G L O B A L  F I N T E C H  D E A L S  A N D  D O L L A R S  S T A R T  2 0 1 9  S T R ONG
10
$2,764 $4,997 $6,417 $2,319 $5,402 $8,495 $2,970 $2,561 $3,266 $5,797 $4,649 $4,563 $6,174 $20,750 $6,110 $7,282 $6,320 266
299
342
284
350
326
313
315
391
405
386
382
470
466
466
427
445
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 
VC-backed fintech deals rebounded in Q1’19 after dip
Quarterly global VC-backed fintech deals and financing, Q1’15 – Q1’19 ($M) 
Q 1 ’ 1 9  D E A L S  C L O S E  T O  R E C O R D  H I G H S
11
$2,595.4 
$3,483.6 
$3,120.9 
$3,571.8 
$3,492.0 
$2,159.3 
$2,203.8 *
$1,928.7 
$2,612.6 
$874.7 
$1,083.3 
$942
$804.9 
$803.7 
$1,713.0 
$0.6 
$61.3 
$30.3 
$11.2 
$66.9 
$56.6 
$25.4 
$204.7 
$72.0 
$130.6 
$278.8 
$33.9 
$20.7 
$210.8 
$42.6 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
Europe pulled ahead of Asia for fintech funding for 
the first time in five quarters
Global VC-backed fintech funding by continent, Q1’18 – Q1’19, ($M)
*Ant Financials' $14B round in Q2’18 was excluded from the chart represented on this slide for illustrative purposes
Africa
South America
Europe
North America
Australia
Asia
12
Q1’19 fintech deals fell below Q1’18 totals in most 
markets
Global VC-backed fintech deals by continent, Q1’18 – Q1’19 
Note: Charts not to scale
2
8
10
8
8
7
4
7
8
5
20
14
16
9
14
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
Africa
Australia
South America
228
197
183
163
189
131
157
147
119
127
82
86
103
120
102
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
North America
Asia
Europe
13
60% 
58% 
54% 
63% 
60% 
18% 
20% 
24% 
20% 
23% 
7% 
6% 
6% 
5% 
8% 
15% 
16% 
16% 
12% 
9% 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
Mega-rounds continued in Q1’19, boosting late-
stage fintech deal share to a 5-quarter high
Annual deal share by stage to global VC-backed fintech companies, Q1’18 – Q1’19
Mid-Stage
Early-Stage
Late-Stage
Other
14
Q1’19: 13 fintech mega-rounds total $2.36B
Global number of fintech mega-rounds ($100M+), Q1’18 – Q1’19
F I N T E C H  M E G A - R O UN D  I N V E S TM EN T S  R EMA I N E D  S T R ONG  I N  Q 1 ’ 1 9  
3
5
7
11
7
4
7
4
3
1
4
1
1
1
4
1
1
1
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
North America
Asia
Europe
South America
Australia
15
Company
Deal Date // 
Amount Raised
Total Disclosed 
Funding Select Investors
Description
Jan’19 // $500M
$925M
($1.2B Valuation)
Greenoaks Capital Management, First 
Round Capital, Sequoia Capital
Tech-enabled health insurance carrier
Jan’19 // $300M
$512.6M
($2.7B Valuation) 
Insight Venture Partners, GIC, Greyhound 
Capital
Digital-first “challenger bank” for retail banking 
services that allows customers to open accounts 
remotely using just a mobile application
Mar’19 // $250M
$503M
($2.7B Valuation)
Bessemer Venture Partners, Generation 
Investment Management, Lead Edge 
Capital, T. Rowe Price, Tiger Global 
Management, TCV
Restaurant management system
Jan’19 // $240M
$250.2M Fifth Wall Ventures, Foundation Capital
Tech-enabled title insurance carrier
Mar’19 // $200M
$308.8M
($1.5B Valuation)
Coatue Management, Dragoneer, DST, 
Forerunner Ventures, General Atlantic, 
ICONIQ Capital, Menlo Ventures
Digital-first “challenger bank” for retail banking 
services that allows customers to open accounts 
remotely using just a mobile application
Top 9 global fintech deals in Q1’19
The top deals to VC-backed fintech companies were all mega-rounds ($100M+)
*Indicates unicorn deal
16
Company
Deal Date // 
Amount Raised
Total Disclosed 
Funding Select Investors
Description
Mar’19 // $125M
$164.3M CreditEase Fintech, Goldman Sachs, 
Mubadala Ventures, Salesforce Ventures
Tech-enabled insurance platform
Jan’19 // $125M
$205.9M Benchmark, Index Ventures, Sequoia 
Capital
Open-source data streaming platform 
Mar’19 // $114M
$178.2M
Index Ventures, PayPal, Ribbit Capital, 
Thrive Capital
Wealth management marketplace
Jan’19 // $105M
$263.8M
($800M Valuation)
CNBC, Blackrock, Bain Capital Ventures
Digital wealth management provider or robo-
advisor
Top 9 global fintech deals in Q1’19
5 of the top 9 deals went to VC-backed fintech companies in the US
17
41 FINTECH UNICORNS
$154.1 BILLION
G L O B A L L Y  T H E R E  A R E
V A L U E D ,  I N  A G G R E G A T E ,  A T
18
SWEDEN
EUROPE
$5.3B
$1.6B
$3.45B
$8B
$1.24B
$1B
NORTH AMERICA
$22.5B Valuation
$1.2B
$3.2B
$4B
$2.9B
$2B
$2.1B (as of Q2’15)
41 fintech unicorns valued at $154.1B
Global VC-backed fintech companies with a private market valuation of $1B+ (4/25/19)
UNITED KINGDOM
$1B
$4.5B (as of Q1’17)
SOUTH AMERICA
$4B Valuation
BRAZIL
$3B
$1B
$1.2 - $1.6B
$2.7B
$1B
$1.7B
$1.9B
$2.7B
$1.27B
$1.1B
$1B (Q2’19)
AUSTRALIA
$2B (Q2’19)
$2.36 - $2.8B 
Valuation
$1.8B
AUSTRALIA 
$1B Valuation
UNITED STATES
GERMANY
$2.7B
$1.5B
$10B
CHINA
INDIA
ASIA
$1.4B
$38B Valuation
$1B
$1.5B
$1B
SOUTH KOREA
$1.2B
$1B (Q2’19)
JAPAN
19
SWEDEN
EUROPE
$5.3B
$1.6B
$3.45B
$8B
$1.24B
$1B
NORTH AMERICA
$22.5B Valuation
$1.2B
$3.2B
$4B
$2.9B
$2B
$2.1B (as of Q2’15)
Q1’19 saw 3 new fintech unicorn births
UNITED KINGDOM
$1B
$4.5B (as of Q1’17)
SOUTH AMERICA
$4B Valuation
BRAZIL
$3B
$1B
$1.2 - $1.6B
$2.7B
$1B
$1.7B
$1.9B
$2.7B
$1.27B
$1.1B
$1B (Q2’19)
AUSTRALIA
$2B (Q2’19)
$2.36 - $2.8B 
Valuation
$1.8B
$10B
CHINA
INDIA
ASIA
$1.4B
$38B Valuation
$1B
$1.5B
$1B
SOUTH KOREA
$1.2B
$1B (Q2’19)
JAPAN
AUSTRALIA 
$1B Valuation
UNITED STATES
GERMANY
$2.7B
$1.5B
20
SWEDEN
EUROPE
$5.3B
$1.6B
$3.45B
$8B
$1.24B
$1B
NORTH AMERICA
$22.5B Valuation
$1.2B
$3.2B
$4B
$2.9B
$2B
$2.1B (as of Q2’15)
And Q2’19 is on track to see more new unicorn rounds
UNITED KINGDOM
$1B
$4.5B (as of Q1’17)
SOUTH AMERICA
$4B Valuation
BRAZIL
$3B
$1B
$1.2 - $1.6B
$2.7B
$1B
$1.7B
$1.9B
$2.7B
$1.27B
$1.1B
AUSTRALIA
$2.36 - $2.8B 
Valuation
$1.8B
AUSTRALIA 
$1B Valuation
GERMANY
$2.7B
$1.5B
$10B
CHINA
INDIA
ASIA
$1.4B
$38B Valuation
$1B
$1.5B
$1B
SOUTH KOREA
$1.2B
$1B (Q2’19)
$2B (Q2’19)
UNITED STATES
$1B (Q2’19)
JAPAN
Marqeta was finalizing plans to raise at least 
$250M at a valuation of about $2B, nearly 
quadrupling its value from two years ago.
March 26, 2019 
The image part with relationship ID rId2 was not found in the file.
#AhaCBI
Q1’19 Fintech 
Sector Trends
22
MACRO SECTOR 
TRENDS
BANK TECH
WEALTH 
MANAGEMENT
REGTECH
INSURTECH
CAPITAL
MARKETS
PAYMENTS
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
DIGITAL
BANKING
23
MACRO SECTOR 
TRENDS
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
DIGITAL
BANKING
24
Challenger banks continued funding tear in Q1’19
VC-backed deals and financing trends to digital banking startups, Q1’18 – Q1’19 ($M)  
$734.2 
$472.4 
$277.6 
$449.7 
$704.6 
17
11
18
15
17
-4 
1
6
11
16
21
26
$(100.0)
$100.0 
$300.0 
$500.0 
$700.0 
$900.0 
$1,100.0 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
25
Challenger banks continue to spread globally
26
56 
100 
120 
150 
200 
210 
450 
500 
500 
600 
600 
600 
796 
1,300 
1,500 
1,700 
2,300 
3,000 
4,000 
5,000 
Tide 
Loot
Lunar Way
Pockit
Greenlight 
Financial
Starling 
Bank
Varo
Acesso
Uala 
Monese
Tandem
Neon
Gimi
Qapital
NuBank 
NuCanta
Monzo
N26
Chime
Revolut 
NuBank
Challenger banks are no longer a niche in fintech 
Digital banking companies have attracted millions of customer accounts (in thousands)
Nu Canta
27
Digital challenger banks deal flow continued in Q1’19 
Note: This chart includes non-VC-backed equity investments
A host of different 
challenger bank 
startups raised 
equity funding in 
Q1’19.
The top two 
rounds to 
challenger banks 
minted new 
unicorns, N26 and 
Chime.
0
28
B R E A K I N G  G R O UN D  I N  N EW  MA R K E T S
N26 is a licensed challenger bank based in Germany 
that has amassed over 2.3M reported retail 
customers since launching in 2014.  
N26 has been leveraging the European Economic 
Area’s banking passport to expand to other EU 
countries. N26’s core products include a mobile app, 
digital checking and savings accounts, and 
connected debit card supported by Mastercard. N26 
also offers business, freelance, and premium 
accounts. Next up, N26 is expanding in the US and 
the UK and considering Latin America. In the US, they 
are looking to launch cash back rewards.
Last Funding 
$300M Series D  // Q1’19
Select Investors
Insight Venture Partners, Allianz X, Tencent 
Holdings, Valar Ventures
Valuation
$2.7B
B AN K  A C C O UN T  F E A T U R E S
R E T A I L ,  F R E E L A N C E ,  &  B U S I N E S S  A C C O UN T S
29
B AN K I N G  O N  M I L L E N N I A L S
Chime is a mobile banking app that provides a 
checking account-like service through a 
partnership with Bancorp and debit cards 
through Visa. The account is free to open and 
provides $0 ATM access and overdraft 
protection. Additional services include a two-
day payday advance for customers that direct 
deposit their paycheck to Chime and optional 
round ups savings accounts.
In April 2019, Chime reported the company had 
opened 3M accounts. 
Last Funding 
$200M Series D  // Q1’19
Select Investors
Crosslink Capital, Forerunner Ventures, Menlo Ventures, 
Northwestern Mutual Capital, Omidyar Network, Homebrew
Valuation
$1.5B
30
C ON S UM E R  C R E D I T  R EMA I N S  A N  A R E A  O F  O P PO R T UN I T Y  F O R  T E C H  S T A R T U P S
Petal is an alternative credit card issuer with 100,000 
pre-launch sign-ups as of October 2018. Petal targets 
the 65M Americans that are uncreditworthy or are 
“credit invisible” and do not meet the traditional 
qualifications for a credit line with a bank. Petal’s 
back-end bank partner is Web Bank.
Petal uses an in-house algorithm that leverages 
machine learning and supplemental data (like income, 
short-term debt, and outstanding loans) to 
alternatively underwrite a consumer’s credit risk. 
Select Investors
Ride Ventures, Rosecliff Ventures, Story Ventures, Valar 
Ventures, Afore Ventures, Brooklyn Bridge Ventures
Last Funding 
$34M Series D  // Q1’19
Valuation
$107M
31
More cross-over cards to come from every corner
UK only
Select insurgent fintech startups and public contenders planning to launch credit and debit cards
Credit Partner TBD
DEBIT
CREDIT
PRIVATE FINTECH
PUBLIC CONTENDERS  
VS.
32
Apple Card emphasizes privacy over perks
Apple introduced the Apple Card in March 2019 as a pillar in its strategy to bet big on subscription 
services. Apple Card prioritizes security over discounts, keeping data & cash in the Apple 
ecosystem, and providing services that integrate seamlessly across its software and hardware 
stack, consistent with Apple’s broader strategy. Existing incumbents don’t have this.
F R OM  C A R D S  T O  A C C O UN T S ,  C O U L D  A N  A P P L E  C H A L L E N G E R  B A N K  B E  N E X T ?
33
MACRO SECTOR 
TRENDS
WEALTH 
MANAGEMENT
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
34
Wealth tech deals came roaring back in Q1’19
VC-backed deals and financing trends to wealth tech startups, Q1’18 – Q1’19 ($M)
$613.9 
$926.0 
$525.8 
$469.0 
$845.1 
50
42
49
37
46
0
10
20
30
40
50
60
$(100.0)
$100.0 
$300.0 
$500.0 
$700.0 
$900.0 
$1,100.0 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
35
+
Acorns grows to 5M customers with $1B in AUM
A C O RN S  I S  A C T I V E L Y  P U R S U I N G  OMN I C H ANN E L  P A R TN E R S H I P S  F O R  D I S T R I B U T I O N
S E L E C T  P A R TN E R S H I P S
Jun’18
Feb’19
Feb’18
Jan’19
Select Investors
NBC Universal, Blackrock, Paypal, Bain, Nyca, The Rise 
Fund, Sound Ventures, Greycroft, Point 72, e.Ventures
Last Funding 
$105M Series E  // Q1’19
Valuation
$860M
Q1’19 announcements:
• Acorns took a strategic investment from NBC Universal
• NBC Universal started creating financial literacy content 
for Acorns Grow as part of the investment 
• Acorns Spend debit card went live
•
To increase offline visibility, Acorns sponsored Roush 
Fenway Racing to partner with Nascar driver Ryan Newman
36
Stash adds 2.5M accounts and active investments
S T A S H  I S  L O O K I N G  T O  D I V E R S I F Y  I N V E S TM EN T  O F F E R I N G
Select Investors
Union Square Ventures, Valar Ventures, Breyer 
Capital, Coatue Management, Entree Capital, 
Goodwater Capital
Last Funding 
$65M Series E  // Q1’19
Valuation
$405M
Q1’19 announcements:
•
Stash added “stock back” rewards, linked to its spending 
cards, which are fractional investments in diversified ETFs 
on a rotating basis
•
In one month, Stash fulfilled 500K rewards
•
Stash bank accounts and debit cards went live
B AN K  P A R TN E R
37
Early-stage wealth tech startups are diversifying 
investing beyond the robo-advisory stack in the US
Select Q1’19 wealth tech deals
Focus: Diversifying IRAs with 
alternative asset classes
Q1’19 Funding: $2.8M Seed
Select Investors: Sequoia 
Capital, Fondation Capital
Focus: 1099 and gig-economy 
benefits platform
Q1’19 Funding: $5.1M Series A
Select Investors: NYCA, Khosla 
Ventures, Kindred Ventures 
Focus: Retirement planning 
and income distribution 
Q1’19 Funding: $1M Series A-II
Select Investors: Inspired 
Capital, Anthemis, Point72
Focus: Financial healthcare and 
wellness benefits for employers
Q1’19 Funding: $2.8M Seed
Select Investors: PJC, TT 
Venture, Y Combinator
38
MACRO SECTOR 
TRENDS
CAPITAL
MARKETS
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
39
Capital markets tech deals grew but funding drops 
with shift to M&A deals in Q1’19
Global capital markets tech VC-backed fintech financing trends, Q1’18 – Q1’19, ($M) 
$1,188.2 
$2,104.5 
$1,213.6 
$1,399 
$1,031.4 
80
60
55
55
60
0
10
20
30
40
50
60
70
80
90
$-
$500.0 
$1,000.0 
$1,500.0 
$2,000.0 
$2,500.0 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
40
Morgan Stanley acquires Solium Capital for $900M 
to win underwriting business ahead of tech IPOs
E Q U I T Y  M ANAG EM EN T  I S  H E A T I N G  U P  W I T H  T H E  L A R G E S T  D E A L  T O - D A T E
Valuation: $1B
Potential opportunities for Morgan Stanley:
• Cross-selling Solium’s clients into the 
wealth management business
• Raising the investment bank’s 
underwriting business as the tech IPO 
market heats up
• Solium acquired Capshare in 2017 which 
remains operational
41
Carta helps venture capitalists, as well as startup employees and other stakeholders, track and 
manage the shares that they own. It also helps companies manage other aspects of their stock,
such as fair-market valuations and secondary sales.
Carta's product becomes more useful as more startups stay private longer and have more 
complicated capitalization tables, though some of its customers have also gone public while 
continuing to use the service. The company has plans to expand to help venture capital firms' 
limited partners, such as endowments and pensions, manage their portfolios.
Financial Management Startup Carta Is 
Raising $300M From A16Z At A $1.8B 
Valuation
42
Cap markets tech brings private markets out of the dark ages 
and protects startup employees
Q1’19 Funding: $2M Seed // Fuel Ventures
Focus: Capdesk is a private equity management 
platform designed to digitize and provide 
liquidity for the billions of pounds (GBP) of 
employee shares in unlisted European 
companies. 
Capdesk is similar to Carta’s initial software 
offering in the US and is one of a number of 
equity management software providers cropping 
up globally to help startups, VCs, and employees. 
Q1’19 Funding: $20M Series B // Citi, 
Nasdaq, Galaxy
Focus: Symbiont is a blockchain company 
developing products in smart contracts and 
distributed ledgers for the capital markets.
In February 2019, Templum partnered with 
Symbiont's Assembly for its regulated, end-to-end 
solutions for raising capital and secondary 
trading platform.
Q1’19 Funding: $35M Series B // Munich Re
Q2’19 Funding: Undisclosed Minority // BNP
Focus: Forge, FKA Equidate, is a settlement and 
custody partner for investors and shareholders in the 
private markets. 
In March 2019, Forge acquired IRA services to expand 
into custody and reduce switching friction for users.
In April 2019, Forge partnered with BNP Paribas to 
originate and distribute new investments with exposure 
to pre-IPO and private markets.
LIQUIDITY
CAP TABLE MANAGEMENT
ISSUANCE
+
43
MACROS SECTOR 
TRENDS
INSURTECH
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
44
Insurtech funding surged on the back of 3 mega-
round investments in Q1’19
Global insurtech VC-backed fintech financing trends, Q1’18 – Q1’19, ($M) 
$711.8 
$556.4 
$1,167.7 
$800.6 
$1,574.7 
66
62
47
46
58
-5
5
15
25
35
45
55
65
75
$-
$200.0 
$400.0 
$600.0 
$800.0 
$1,000.0 
$1,200.0 
$1,400.0 
$1,600.0 
$1,800.0 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
45
Mutual aid platforms take off in China to 
crowdfund medical coverage
Q1’19 Funding: $74M Series B // Tencent, BlueRun Ventures
Focus: Shuidihuzhu is a mutual aid platform in China that allows 
members to raise money for diseases that require high medical fees. 
Members pay a small upfront fee into a pool of funds that pays out 
when a member is diagnosed with a serious disease such as lung 
cancer. Shuidihuzhu also brokers health insurance policies to members.
Most plan participants are from rural cities. Shuidihuzhu has paid out 
more than 400M yuan to more than 3,000 people to date.
SHUIDIHUZHU
XIANG HU BAO
Launch: October 2018 by Ant Financial
Focus: Xiang Hu Bao is Ant Financial’s mutual aid platform, which 
provides lump-sum payouts for 100 critical injuries or diseases based 
on payments collected from its members. The service, which is 
available to anyone 30 days old to 59 years old, has acquired over 50M 
customers in less than six months. 
Ant charges an 8% administrative fee for every payout and reportedly 
hopes to sign up more than 300M users within two years.
46
Mix of European insurtech startups raise growth 
financing in Q1’19
Q1’19 Funding: $45M Series B // DST 
Global, Index Ventures
Focus: Alan is a Paris-based startup operating as 
a licensed private health insurer providing 
coverage beyond the basic reimbursements 
provided by France’s national healthcare system.
Alan also provides digital tools such as a maps 
product to find nearby doctors. Alan grew from 
5,000 policyholders to 27,000 in 2018, focusing 
on freelancers and small businesses.
Q1’19 Funding: $125M Series B // 
Mubadala Ventures
Focus: Wefox Group is a Berlin-based startup that 
owns Wefox, an insurance management app, and 
One, a digital liability insurer for personal 
insurance coverage. 
Wefox currently serves more than 400K 
customers and 1,500 brokers, with 80% of 
customers on the Wefox platform coming via 
brokers.
Q1’19 Funding: $60M Series C // BVP, Accel
Focus: Shift Technology is a Paris-based startup 
providing software tools to detect fraudulent insurance 
claims. 
Shift works with more than 70 global customers 
including CNA in the US, MACIF in France, and AXA in 
Spain.
Shift is expanding into claims automation with a SaaS-
based solution that augments existing processes and 
integrates into core systems.
FRAUD
HEALTH INSURANCE
INSURANCE BROKERAGE & 
LIABILITY INSURER
47
MACRO SECTOR 
TRENDS
REGTECH
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
48
Regtech saw drop in funding but slight recovery in 
deals in Q1’19
Global regtech VC-backed fintech financing trends, Q1’18 – Q1’19, ($M) 
$385.1 
$450.6 
$546.8 
$686.8 
$337.8 
39
31
30
21
25
0
5
10
15
20
25
30
35
40
45
$-
$100.0 
$200.0 
$300.0 
$400.0 
$500.0 
$600.0 
$700.0 
$800.0 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
49
A payday lender in disguise? New York 
investigates the Earnin app
April 3, 2019 | 
UniCredit Bank AG hit with $1.3B fine by U.S. 
Justice Department 
April 17, 2019 |  
Regulators find compliance gaps
R E G U L A T O R S  C O N T I N U E  T O  C R A C K  D OWN  O N  B O TH  I N C UMB E N T S  A N D  S T A R T U P S
50
“We continue to be disappointed with Wells Fargo Bank 
N.A.’s performance under our consent orders and its 
inability to execute effective corporate governance and a 
successful risk-management program. We expect 
national banks to treat their customers fairly, operate in 
a safe and sound manner, and follow the rules of law.”
March 15, 2019, OCC public rebuke of Wells Fargo Bank
March 28, 2019, Tim Sloan, Wells Fargo CEO retired
R E G U L A T O R S  A R E  MO R E  EM B O L D E N E D  T H AN  E V E R
51
Startups fight crime and counter terrorism with AI and APIs 
Q1’19 Funding: $9M Series A 
Select Investors: Canaan, Broadhaven
Regulations: AML, Fraud
Focus: Beam helps fintechs, banks, broker-
dealers, and cryptocurrency companies to 
streamline workflows, lower false positives, 
and centralize data to comply with 
regulations. The company’s API-based 
platform conducts transaction monitoring 
with the data and helps customers 
proactively identify suspicious activity.
Q1’19 Funding: $7.5M Series A
Select Investors: Jungle Ventures, Illuminate
Regulations: AML, Reconciliation
Focus: Tookitaki provides end-to-end 
machine learning applications for 
reconciliation. Tookitaki’s REST APIs and AI 
are auditable and scalable for compliance 
with financial services regulations. 
Q1’19 Funding: $30M Series B
Select Investors: Index Ventures, Balderton
Regulations: AML, CFT
Focus: ComplyAdvantage supports a suite of 
plug-and-play cloud services including REST 
APIs, automated onboarding, and continuous 
monitoring for compliance risks.
The company helps firms comply with 
regulations relating to sanctions, anti-money 
laundering (AML), terrorist financing (CFT), 
bribery, and corruption. 
52
Next-gen regtech startups are combating identity fraud 
with biometric authentication and continuous monitoring 
Focus: Socure verifies digital identities by combining machine 
learning with trusted datasets to authenticate identities in real time. 
Socure provides services to lenders, card issuers, banks, e-
commerce, and digital payments. 
In December 2018, Socure partnered with Alloy to offer financial 
institutions better customer “risk scoring,” aiming to reduce the 
number of false positives in fraud analysis. 
Feb’19 // $30M Series C
Select Investors: 
Two Sigma, Santander, Flint Capital
Focus: Onfido is a digital identity company that provides 
verification software for background screening and 
onboarding. 
Onfido uses machine learning to remotely validate a person's 
identity document and compares it with their facial 
biometrics. The identity can then be checked against 
international credit bureaus and watchlists. 
Apr’19 // $50M Series D
Select Investors: 
Salesforce, SBI Group
53
MACRO SECTOR 
TRENDS
PAYMENTS
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
54
Payments incumbents look to consolidate plumbing 
and infrastructure with record M&A deals
Source: SEC FORM 8-K
In January 2019, Fiserv announced its $41B 
acquisition of First Data 
Fiserv provides card-based solutions for banks and 
non-bank issuers. 
• Combined with First Data’s merchant acquiring 
services, FIS will touch end-to-end payments 
chains including card issuing and core 
processing, networks services, e-commerce, and 
integrated payments. 
• Consumers and merchants could benefit from the 
augmented network and consolidated distribution 
channels, tightened risk management protocols, 
and expanded card-based acceptance solutions.
+
55
FIS acquires Worldpay in a ~$43B deal, the biggest 
fintech acquisition of all time
In March 2019, FIS announced its $43B acquisition 
of Worldpay
• FIS and Worldpay have complementary solutions 
and services encompassing financial 
institutions, issuing and acquiring services, and 
commerce.
• Consumers and merchants will benefit from the 
combined omnichannel payment & multi-
currency capabilities, robust risk & fraud 
solutions, and robust data analytics.
• Worldpay has been adding key e-commerce 
partnerships including supporting Amazon Pay 
outside of Amazon’s marketplace.
VS.
56
K L A R N A  I S  E X P A N D I N G  G L O B A L L Y  W I T H  A  H Y B R I D  P A YM EN T S ,  C R E D I T ,  &  B A N K I N G  S U I T E
Select Investors
Permira, H&M, Sequoia Capital, Permira, DST 
Global, QED
Last Funding 
$108M Private Equity  // Q1’19
Valuation
$2 - 2.5B
Klarna is a Sweden-based alternative payments 
platform that aims to provide a frictionless buying 
experience to buyers and sellers.
2019 announcements:
•
Raised $108M in private equity from Permira and 
Sequoia in April 2019 
•
Launched a new open banking platform that links 
to 4,300 banks and a global authentication 
platform
•
In Q1’19, Snoop Dogg angel invested and was the 
center of a new marketing campaign
• Partnered with Canada’s PayBright, adding 
another 4,000 merchants to the platform
57
Fintech in Africa is growing, payments and 
lending remain the top targets for deals
58
Africa’s payments landscape is evolving similarly 
to other regions through VC deals and M&A 
Q1’19 Funding: 
$150K Seed
Select Investors: 
Y Combinator
Focus: Wallet.ng is a digital payments 
platform that aids transactions by 
allowing people to send and receive 
money and also make payments using 
just their phone numbers.
Q1’19 Update: Similar to the Fiserv and FIS 
deals, India’s FSS is looking to frontier 
markets to grow their merchant acquiring 
business. In March, FSS made a minority 
investment in Africa’s Ecentric Payment 
Systems, taking a 46% share of the company.
Q1’19 Funding: 
$5M Series A
Select Investors: 
Y Combinator,
Khosla Ventures
Focus: Kudi provides a mobile app that offers 
bill payment through messaging. Features 
include bill payment, bill reminders, airtime 
purchase, and funds transfer.
59
MACRO SECTOR 
TRENDS
BANK TECH
GLOBAL  VC-BACKED  
FINTECH Q1 ’2019
60
Community lenders say their tech providers aren’t always helping them compete for deposits. 
Little known outside the banking world, but their infrastructure now makes up much of the 
modern banking system’s financial plumbing, especially for smaller banks. 
“The cores” provide the legacy technology behind everything from keeping track of customer 
deposits to powering mobile apps. The three biggest core providers today do business with 90% 
of US banks with less than $1B in assets.
Frustrated by the Tech Industry, Small 
Banks Start to Rebel Against Legacy 
Core Providers FIS, Fiserv, & Jack Henry
61
Next-gen bank cores pick up funding and fintech clients 
but face high barriers to break into networked banks
Last Funding: $5.4M Series B-II Q2’18
Select Investors: 
Insight Venture Partners
2019 Developments: Nymbus is breaking into de novo banks, or 
newly chartered banks. Moxy, a new DC-based de novo bank, 
received a conditional charter in January 2019 and announced 
the selection of Nymbus’ core banking suite. 
Nymbus’ suite of services includes SmartCore and SmartLaunch, 
a full-service and standalone digital brand alternative. 
Select Investors: 
ABA, Accenture, First Data Ventures, Live Oak Ventures, 
SunTrust Banks, T.N. Incorporation, Woodforest National Bank
Focus: Finxact is developing an enterprise-class public 
cloud/private data Core-as-a-Service platform with a 
completely open banking API. The Finxact Core will allow 
banks to deliver new services for omnichannel consumers.
Last Funding: $30M Series A Q1’19
+
62
Europe sees utility players capitalize on open banking 
tailwinds and bank demand for go-to-market solutions
Focus: Mambu is a SaaS banking platform that powers digital 
financial services. The company provides flexible, banking 
architectures that aim to allow its clients to operate like tech 
companies rather than banks. The company is based in Germany.
Select Investors: 
Acton Capital Partners, Bessemer Venture Partners, Point Nine 
Capital, CommerzVentures
Feb’19 // $34M Series C
Focus: 10x offers a suite of APIs covering process core 
automation, compliance reporting, security, and analytics.
10X had a false start in 2018 after losing its largest prospect, 
Virgin Money. The company got a fresh injection of funding 
from Nationwide, its new marquee client.
Select Investors: 
Nationwide Building Securities, Ping An Ventures
Mar’19 // $19.7M Series B
Select customers:
+
63
Ant Financial has accelerated the roll-out of services that share its technological capabilities with 
financial institutions. Ant is partnering with Jiangsu-based Hoperun and unveiled its Distributed 
Core Banking Platform (DCBP), a next generation banking product designed to help financial 
institutions shift from transaction-oriented to customer-oriented and tackle digital challenges, 
including distributed development, financial product management and accounting liquidation. 
To date, Ant Financial has provided more than 100 technology products and solutions and 
collaborated with more than 200 service partners.
Ant Financial Launches Distributed Core 
Banking Platform with Hoperun 
Information Technology
From financial super app to 
full-stack banking, could a 
charter be next? 
64
Q1’19 global fintech 
financing trends 
A P P E N D I X :
65
$3.3 BILLION
170 DEALS
U S  F I N T E C H  V C - B A C K E D  E Q U I T Y  F U N D I N G  I N  Q 1 ’ 1 9 :
A C R O S S
66
Q1’19 US fintech deals rebounded after three 
consecutive dips, but remained below Q1’18 levels 
US VC-backed fintech financing trends,  Q1’18 – Q1’19 ($B) 
$2.5 
$3.4 
$3.0 
$3.4 
$3.3 
212
180
169
149
170
$-
 
$0.5 
$1.0 
$1.5 
$2.0 
$2.5 
$3.0 
$3.5 
$4.0 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
67
US early-stage fintech deals rebounded but funding 
dropped in Q1’19
US early-stage VC-backed fintech financing trends, Q4’17 – Q4’18, ($M)
US saw a fresh crop of 
early-stage startups 
raise funding in Q1’19 
Early-stage deals took 91 of the 
170 deals in Q1’19, representing 
54% of quarterly deals. In Q4’18, 
early-stage deals took 79 of 149, 
or just over 53% of quarterly 
deals. Though the total number 
of deals grew, early-stage deals 
as a percentage of the total were 
flat QOQ. 
The quarter continued to see 
mega-rounds go to scale ups like 
Acorns, Stripe, Toast, Chime, 
among others.  
$624 
$618 
$518 
$678 
$491 
125
90
85
79
91
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
68
New York is closing in on California as a fintech hub
New York vs. California VC-backed fintech deals, Q1’18 – Q1’19
California deals 
dropped to 5-quarter 
low 
California saw deals drop to 
51 in Q1’19, down 43% 
compared to Q1’18. 
New York saw 44 deals in 
Q1’19 which was flat 
compared to Q1’18. 
The US saw one new fintech 
unicorn birth, Chime, a San 
Francisco-based challenger 
banking startup. 
90
67
59
62
51
44
39
38
31
44
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
California
New York
69
$875 MILLION
127 DEALS
A S I A  F I N T E C H  V C - B A C K E D  E Q U I T Y  F U N D I N G  I N  Q 1 ’ 1 9 :
A C R O S S
70
Fintech funding in Asia fell to 5-quarter low in 
Q1’19, down 59% from Q1’18
Asia VC-backed fintech financing trends, Q1’18 – Q1’19 ($M) 
$2,159 
$16,204 
$1,929 
$2,613 
$875 
131 
157 
147 
119 
127 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
*Spike in Q2’18 was driven by Ant Financials’ record breaking $14B round 
71
India tied China as a fintech deal hub in Q1’19
China vs. India VC-backed fintech deals, Q1’18 – Q1’19
China fintech deals 
fell off in Q1’19 
following regulatory 
tightening on online 
lending
India and China both saw 29 
deals in Q1’19. 
China saw deals drop to a 5-
quarter low.  
India deals were flat 
compared to the same quarter 
a year prior.
50
76
71
49
29
29
28
22
18
29
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
India
China
72
$428.2 $454.3 $397.6 $225.1 $285.6 $1,544.5 $1,451.0 $1,091.8 $1,829.7 $192.1 Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
India beat China as a fintech funding hub in Q1’19
China vs. India VC-backed fintech deals, Q1’18 – Q1’19
India overtook China 
in funding as China 
fintech funding fell 
off in Q1’19 
India saw funding top $286M 
while China only saw $192M 
in Q1’19. 
China fintech funding hit a 5-
quarter low. 
India
China
73
$1.7 Billion
102 DEALS
E U R O P E  F I N T E C H  V C - B A C K E D  E Q U I T Y  F U N D I N G  I N  Q 1 ’ 1 9 :  
A C R O S S
74
Fintech deals in Europe decline, as funding hits 
$1.7B in Q1’19
Europe VC-backed fintech financing trends, Q1’18 – Q1’19, ($M) 
$1,083 
$942 
$805 
$804 
$1,713 
82
86
103
120
102
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
75
Europe overtook Asia in funding in Q1’19
Global VC-backed fintech funding by continent, Q1’18 – Q1’19 , ($M)
*Spike in Q2’18 was driven by Ant Financials’ record breaking $14B round 
North America
Europe
Asia
$2,595 
$3,484 
$3,121 
$3,572 
$3,492 
$2,159 
$16,204 
$1,929 
$2,613 
$875 
$1,083 
$942 
$805 
$804 
$1,713 
Q1'18 
Q2'18 
Q3'18 
Q4'18 
Q1'19 
North America
Asia
Europe
76
The UK leads as Europe’s top fintech market for funding, 
despite Brexit uncertainty
UK  vs. Germany VC-backed fintech funding, Q1’18 – Q1’19 ($M)
The UK and Germany 
went head-to-head in 
funding in Q1’19
The UK led as the top fintech 
market in Europe with $645M 
invested across 42 deals.
Germany was the second top 
market in Europe, with $588M 
invested across 15 deals. 
Germany saw the largest 
funding round in Europe in 
Q1’19, a $300M investment to 
N26. The deal valued the 
challenger bank at $2.7B, 
making it Germany’s first 
fintech unicorn. 
$259.7 $130.4 $175.9 $168.9 $588.4 $552.0 $531.2 $462.5 $395.6 $645.0 Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
UK
Germany
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#AhaCBI
Most active 
fintech investors
78
The most active fintech VCs from Q1’18 – Q1’19
By unique fintech company investments (new or follow-on) 
Rank
Investor
Select Fintech Investments
1
2
3
3
5
79
The most active fintech VCs from Q1’18 – Q1’19
By unique fintech company investments (new or follow-on) 
Rank
Investor
Select Fintech Investments
5
7
8
9
9
9
80
Methodology
CB Insights encourages you to review the methodology and definitions employed to better understand the numbers presented in this
report. If you have any questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights 
directly. Additionally, if you feel your firm has been under-represented, please send an email to info@cbinsights.com and we can work 
together to ensure your firm’s investment data is up to date.
What is included:
What is excluded:
― Equity financings into emerging fintech companies. Fundings must be put into VC-backed 
companies, which are defined as companies who have received funding at any point from 
venture capital firms, corporate venture groups, or super angel investors.
― Fundings of only private companies. Funding rounds raised by public companies of any 
kind on any exchange (including Pink Sheets) are excluded from our numbers, even if they 
received investment by a venture firm(s). 
― Only includes the investment made in the quarter for tranched investments. If a company 
does a second closing of its Series B round for $5M and previously had closed $2M in a 
prior quarter, only the $5M is reflected in our results.
― Round numbers reflect what has closed — not what is intended. If a company indicates 
the closing of $5M out of a desired raise of $15M, our numbers reflect only the amount 
which has closed.
― Only verifiable fundings are included. Fundings are verified via various federal and state 
regulatory filings, direct confirmation with firm or investor, or press release.
― Previous quarterly VC reports issued by CBI have exclusively included VC-backed rounds. 
In this report, any rounds raised by VC-backed companies are included, with the 
exceptions listed.
— No contingent funding. If a company receives a commitment for $20M subject to hitting 
certain milestones but first gets $8M, only the $8M is included in our data.
— No business development / R&D arrangements, whether transferable into equity now, later, or 
never. If a company signs a $300M R&D partnership with a larger corporation, this is not equity 
financing, nor is it from a venture capital firm. As a result, it is not included.
— No buyouts, consolidations, and/or recapitalizations. All three of these transaction types are 
commonly employed by private equity firms and are tracked by CB Insights. However, they are 
excluded for the purposes of this report.
— No private placements. These investments, also known as PIPEs (Private Investment in Public 
Equities), are excluded even if made by a venture capital firm(s).
— No debt / loans of any kind (except convertible notes). Venture debt or any kind of debt / loan 
issued to emerging startup companies, even if included as an additional part of an equity 
financing, is not included. If a company receives $3M with $2M from venture investors and 
$1M in debt, only the $2M is included.
— No government funding. Grants, loans, or equity financings by the federal government, state 
agencies, or public-private partnerships to emerging startup companies are not included.
81
WHERE  I S  ALL  TH IS  DATA  FROM?
The CB Insights platform 
has the underlying data 
included in this report
app . cb i n s i gh t s . com/s i gnup