According to the reports, Fintech investment in the United States hit a record of USD 52.5 billion during 2018, largely driven by mergers and acquisitions (M&A), and VC (Venture Capital). Published by KPMG, the report titled 2018 Pulse of Fintech, has covered the deals that was responsible to accelerate the fintech investment in the U.S. including huge investment of USD17 billion by Blackstone Group in October last year into Refinitiv, a financial and risk group of Thomson Reuters, the Silver Lake and P2 Capital Partners’ takeover on Blackhawk in last June and Francisco Partners acquisition of VeriFone with a USD 3.4 billion investment in last August.
In 2018, VC investment in the US-based fintech companies was particularly sturdy. The report also included the significant number of over USD100 million mega-deals, such as Dataminr raised USD392 million, Oscar’s USD375 million, Robinhood’s USD363 million and USD300 million raised by Coinbase drive the fintech-based VC investment from USD7 billion in 2017 to over USD11 billion in 2018. Further, the number of fintech deals also touched a new height of 773 that is up from 661 in last year. The KPMG’s report naturally looked at the worldwide scenario that illustrated fintech investment doubled to previous year’s USD 111.8 billion globally. Based on the region, the Americas, Europe, and Asia all saw momentous growth in fintech investment and was primarily driven by the U.S. and the Americas, where deal volume seemed unyielding increases year-over-year.
For the largest fintech investment accounted by mergers & acquisition and buyouts during the year both in the Americas and Europe, while Venture Capital investment saw a strong increase in the Asia region. Based on technology, KPMG noted that payments and lending process continued to pull most vital investments across the globe, albeit Insuretech and Regtech were also recorded high on the radar of investors.