Personal Capital raises $75M, bolstering global fintech boom
Personal Capital’s fresh financing makes it the 25th privately held fintech company to be valued at $500 million or more globally. Others on that list include Social Finance, Stripe, Prosper Marketplace and Funding Circle. Fintech, which includes everything from peer-to-peer lending to digital currency to wealth management, is one of a select number of verticals that saw an increase in deal count and deal value from 2014 to 2015. In 2016, more than $7.5 billion has already been invested in fintech, though 60% of that total is attributed to China-based Ant Financial’s recent massive round that generated a valuation of $60 billion.
One indicator of the strength of the fintech market is that investment in the sector hasn’t been limited geographically. The highest valued fintech company hails from China (Ant Financial); more than $5.2 billion has been invested in Europe’s fintech space since 2013; and two of India’s fintech companies have reached a valuation of at least $400 million (one via a Snapdeal acquisition). All to go along with the nearly $11 billion of venture funding that has made its way to fintech in the U.S. over the past two-and-a half years. It’s safe to say that the global rise of fintech is poised to continue.