Fintech funding saw a strong rebound in Q2 2017 as global merger and acquisitions (M&A) and private equity (PE) fintech deals helped drive the sector overall, according to KPMG and CB Insights – a quarterly report on global fintech investment.

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On a global basis, total fintech funding reached $8.4 billion in the last quarter, up more than 120 percent from $3.6 billion in Q1 2017.

A few mega-rounds buoyed global fintech funding significantly, led by the buyout of Toronto-based Payments company DH by US-based Vista Equity Partners, setting $3.6 billion funding round, which accounted for more than half the total fintech funding during the quarter.

European funding volumes increased overall. Fintech firms in Europe attracted $2.0 billion in VC investment in Q2 2017, the best figure in more than a year although still notably lower than the $5.8 billion seen in Q4 2015. Within Europe, Germany continued to thrive, outstripping the UK which saw deal value rise to $1.4 billion, although transaction volume remained steady.

Excluding the DH deal, activity in the US, including M&A and VC investments, totaled 105 deals in the second quarter. Total VC investment in the US rose to $2.0 billion, including five of the top 10 fintech deals globally - AvidXchange (US$300 million), Bright Health (US$160 million), Pos Portal (US$158 million), Fast Match (US$153 million) and Addepar (US$140 million).

On a positive note, the median deal size increased year-over-year for both seed rounds and early-stage VC deals. In addition, massive late-stage fintech financing contributed to keep total deal value healthy.

Commenting on the results, Ian Pollari, Global Co-Leader for Fintech, and a partner for KPMG Australia, said: “Fintech investment has made a comeback this quarter - a sign of renewed investor intent - particularly in the US and Europe. Corporates are increasingly accounting for significant amounts of fintech investment - a trend that isn’t likely to let up given the need for financial institutions to digitize the customer experience, become more cost efficient, and find new sources of earnings growth.”

Fintech funding saw a strong rebound in Q2 2017 as global merger and acquisitions (M&A) and private equity (PE) fintech deals helped drive the sector overall, according to KPMG and CB Insights – a quarterly report on global fintech investment.

The London Summit 2017 is coming, get involved!

On a global basis, total fintech funding reached $8.4 billion in the last quarter, up more than 120 percent from $3.6 billion in Q1 2017.

A few mega-rounds buoyed global fintech funding significantly, led by the buyout of Toronto-based Payments company DH by US-based Vista Equity Partners, setting $3.6 billion funding round, which accounted for more than half the total fintech funding during the quarter.

European funding volumes increased overall. Fintech firms in Europe attracted $2.0 billion in VC investment in Q2 2017, the best figure in more than a year although still notably lower than the $5.8 billion seen in Q4 2015. Within Europe, Germany continued to thrive, outstripping the UK which saw deal value rise to $1.4 billion, although transaction volume remained steady.

Excluding the DH deal, activity in the US, including M&A and VC investments, totaled 105 deals in the second quarter. Total VC investment in the US rose to $2.0 billion, including five of the top 10 fintech deals globally - AvidXchange (US$300 million), Bright Health (US$160 million), Pos Portal (US$158 million), Fast Match (US$153 million) and Addepar (US$140 million).

On a positive note, the median deal size increased year-over-year for both seed rounds and early-stage VC deals. In addition, massive late-stage fintech financing contributed to keep total deal value healthy.

Commenting on the results, Ian Pollari, Global Co-Leader for Fintech, and a partner for KPMG Australia, said: “Fintech investment has made a comeback this quarter - a sign of renewed investor intent - particularly in the US and Europe. Corporates are increasingly accounting for significant amounts of fintech investment - a trend that isn’t likely to let up given the need for financial institutions to digitize the customer experience, become more cost efficient, and find new sources of earnings growth.”