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Why fintech is the hottest place to be right now

by Life.SREDA

In APAC alone, fintech is already a multibillion dollar industry

Read our full research “Money of the Future”. Download PDF (20MB)

Life.SREDA, a Singapore based leading Fintech Venture Capital firm with investments throughout the region has today revealed the key metrics that showcase fintech’s meteoric growth over the past few days.

These metrics have been compiled in an infographic that is attached.
INFOGRAPHIC Why Fintech is the hottest place to be right now

 


“As more and more people begin to perform commerce online, especially in the developing world, the need for fintech services will only increase. Fintech startups are agile, can perform specialised tasks and deploy quickly,”

Life.SREDA’s investment Director Igor Pesin.


 

According to a recent Accenture report, Fintech investment in Asia Pacific in particular is expected to grow rapidly, increasing four-fold from US$880 million in 2014 to nearly US$3.5 billion in only the first nine months of 2015.

According to Pesin, “We see the rapid growth in new capital to be evident of the demand for fintech services, especially in APAC. In the very near future, as internet technologies become cheaper and more readily available, the sky is the limit for what fintech will achieve.
The top three key metrics are:

Global investment into fintech is skyrocketing

The success of companies like Square, Stripe and Xoom coupled with the unprecedented uptake in smart devices has created a scenario where investors are tripping over themselves to invest in fintech. From large firms like Sequoia to more fintech focused funds like Life.SREDA, the sheer potential of a technology sector that in essence, has the ability to control global commerce dwarfs that of any other. While we do expect slowdowns in investment, especially in Asia due to a weakening Chinese economy coupled with stronger US exchange rate, the fintech train will keep on chugging.

Funding into individual startups has risen by leaps and bounds

“Show me the money,” goes the classic line from Jerry Maguire. Well, if you want to see just how highly regarded fintech startups have become in the eyes of investors, look no further than the massive spike in deals made and amounts invested since 2010. From about 200 deals in 2010 to an estimated 2000 plus deals in 2015, these deals represent the value investors see in fintech startups and is also a testament to the versatility of startups in this space.

Fintech is actually the most funded sector in tech startups

When you think about cool startups, you will often think about the more sexy types of companies; media streaming, e-commerce, gaming and the like. However, it is actually fintech, a considerably less sexy sector that commands the biggest investments. After all, no sector in startup-land works as closely with actual money as fintech does, as the name implies, financial technology is the act of using tech to allow the propagation of existing and the creation of new financial services. With this in mind it is not hard to see just why fintech has outpaced ad-tech, green tech and even e-commerce to be the most heavily funded startup sector.

Life.SREDA is a global fintech- and finserv- focused VC with HQ in Singapore.

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