Globally, fintech investment in Q3 2017 fell to $8.2 billion from $9.3 billion in Q2 2017. Investment in Q3 2016 was $6.3 billion.
Despite the decrease, fintech investment remained strong for the quarter, with positive investor sentiment across the Americas, Asia and Europe.
Investments in U.S. fintech companies have nearly doubled during Q3 2017 to $5 billion from $2.6 billion in Q2 2017.
The growth in investments in U.S. fintech companies was driven by Venture Capital (VC) funding, an increase in deal value, and strong performance by the Private Equity sector, according to KPMG.
The KPMG report said that there were 142 investment deals this quarter compared to 125 deals in Q3 2016 and 147 last quarter.
“We see a lot of optimism in the U.S. Fintech market – from the maturation and adoption of early stage technologies like Big Data, Artificial Intelligence and IoT to the rapid acceleration of others, such as Insurtech, Robo-advisory, Blockchain and Regtech,” said Anthony Rjeily, leader for Financial Services’ Digital and Fintech practice in the U.S.
The U.S. accounted for half of the biggest deals, including: Intacct, (M&A deal at $850 million), CardConnect (Private/Public M&A at $750 million) and Xactly (Secondary buyout at $564 million). However, year-to-date median deal size for late stage deals dropped compared to 2016, to $11 million from $23.5 million.
