What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC...

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What’s Happening in FinTech Investment and Why? Abdul Haseeb Basit CFO, Innovate Finance @abdulhbasit

Transcript of What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC...

Page 1: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

What’s Happening in FinTech

Investment and Why?

Abdul Haseeb Basit CFO, Innovate Finance @abdulhbasit

Page 2: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

2 GLOBAL FINTECH VC INVESTMENT 5 YEAR TREND H1 2017 has seen 787 deals globally attracting $6.5BN of VC investment, a 45% decrease YoY

1 2,074

3,684

6,514

11,795

6,525 4,153

7,905

10,039

5,995

6,228

11,589

16,553 17,790

1,112

1,581

1,896 1,819

787

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

5,000

10,000

15,000

20,000

FY 13 FY 14 FY 15 FY 16 H1 17

Dea

l Vol

ume

Dea

l val

ue ($

M)

H1 H2 Number of deals

-45%

Source: PitchBook 18-Jul-17

Page 3: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

3 GLOBAL FINTECH VC INVESTMENT DEAL VALUE H1 2017

U.S. $3.3bn

Canada $123m

France $78m

India $419m

South Korea $59m

China $1bn

Germany $166m

U.K. $564m

≥ $500m

≥ $100m

≥ $10m

< $10m

$6.5BN Invested Over 787 Deals

Singapore $79m

Sweden $297m

Source: PitchBook 18-Jul-17

Page 4: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

4 GLOBAL FINTECH VC INVESTMENT DEAL VOLUME H1 2017

U.S. 357

Canada 22

Australia 15

India 46

China 16

Germany 32

U.K. 102

Israel 17

≥ 50

≥ 20

≥ 5

≥ 1

787 Deals in 54 Countries

Switzerland 15

France 24

Singapore 14

Source: PitchBook 18-Jul-17

Page 5: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

5 GLOBAL FINTECH VC INVESTMENT TOP 10 COUNTRIES (H1 16 vs H1 17) The United States attracted the most investment, both in deal value ($3.3BN) and deal volume (357)

3,263

1,007

564

419

297

166

123

79

78

59

3,028

7,023

411

139

30

293

96

34

43

24

United States

China

United Kingdom

India

Sweden

Germany

Canada

Singapore

France

South Korea

H1 17 H1 16

357

102

46

32

24

22

17

16

15

15

438

116

53

33

30

24

17

20

17

12

United States

United Kingdom

India

Germany

France

Canada

Israel

China

Australia

Switzerland

H1 17 H1 16

Top 10 counties by deal value ($M) Top 10 counties by deal volume

Source: PitchBook 18-Jul-17

Page 6: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

6 UK FINTECH VC INVESTMENT 5 YEAR TREND H1 2017 has seen 102 deals globally attracting $564M of VC investment, a 37% increase YoY

572

138

676

411 564

152

582

659

387

724 720

1,335

797 113

173

204

220

102

0

50

100

150

200

250

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

FY 13 FY 14 FY 15 FY 16 H1 17

Dea

l vol

ume

Dea

l val

ue ($

M)

H1 H2 Deal volume

37%

Source: PitchBook 18-Jul-17

Page 7: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

7 UK FINTECH VC INVESTMENT H1 2017 VERTICAL ANALYSIS Alternative Lending / Financing and Challenger Banks remain the top verticals in H1 2017, with 28% and 25% of investment respectively

Alternative Lending / Financing, 28%

Challenger Banks, 25% Personal Finance / Wealth Management,

13%

Enterprise Software, 9%

Money Transfer & FX, 5%

Prop-Tech, 4%

Payments, 3%

Institutional / Capital Markets, 3%

RegTech, 3%

InsurTech, 2% Financial Education and Inclusion, 2% Digital Currencies &

Blockchain, 1%

Crowdfunding, 1%

Source: PitchBook 18-Jul-17

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8 UK FINTECH VC INVESTMENT H1 2017 INVESTOR HQ ANALYSIS 54% of VC investment into the UK was from non domicilied VCs, with the majority coming from North America (33%)

United Kingdom

46%

North America 33%

Europe 12%

Asia 7%

Eurasia 1% South America

1%

Source: PitchBook 18-Jul-17

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The Islamic FinTech

Landscape 2017

Page 10: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan
Page 11: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

11 ISLAMIC FINTECH LANDSCAPE VERTICAL ANALYSIS

36

18

14 12 11

5 4 2 1

Crowdfunding Banking Software Payments, Remittance & FX

Alternative / P2P Finance

PFM, Trading & Investment

Blockchain & Crypto Currency

Challenger/Digital Bank

InsureTech Data & Analytics

Page 12: What’s Happening in FinTech Investment and Why? · ISLAMIC FINTECH LANDSCAPE 12 GEOGRAPHIC ANALYSIS U.S.A. 11 Canad a 1 U.K. 16 Malaysia 18 Indonesia 15 U.A.E 12 Somalia 1 Pakistan

12 ISLAMIC FINTECH LANDSCAPE GEOGRAPHIC ANALYSIS

U.S.A. 11

Canada 1 U.K.

16

Malaysia 18

Indonesia 15

U.A.E 12

Somalia 1

Pakistan 3

India 4

Egypt 4

France 1

Morocco 1

Sweden 1

Russia 1

Iran 1

Luxembourg 1

Hong Kong 1

Switzerland 2 Hungary

1

Lebanon 1

Jordan 2

Kuwait 1

Qatar 1

Singapore 3