July 25, 2017 / 2:00 PM / 3 months ago

Fintech funding jumps to record US$5.2bn in Q2

LONDON, July 25 (IFR) - There are 26 financial technology “unicorns”, or startup companies valued at US$1bn or more, after five new firms reached that milestone last quarter, according to a report released on Tuesday.

It follows a record US$5.193bn of fundraising to fintech firms in the second quarter, the latest CB Insights report on the fintech industry said. That figure eclipses the previous record third quarter of 2015, when US$5.187bn was raised.

CB Insights said there were 251 deals globally in the second quarter, up from 245 in the previous quarter, when US2.8bn was raised. The data cover deals for venture-capital backed fintech firms.

The number of deals in North America fell to 106 (raising US$2bn) from 110 in the previous quarter and 124 a year earlier.

The number of deals in Asia jumped to 67 raising US$2.7bn last quarter, up from 43 in the first quarter. In Europe, Middle East and Africa there were 56 deals last quarter raising US$498m, down from 78 in the first quarter.

CB Insights said 15 of the unicorns are based in North America, seven are in Asia and four are in Europe.

They include AvidXchange, a US software company that helps mid-sized companies automate their invoicing and bill payments, which raised US$300m last quarter and is now valued at US$1.4bn.

The list also includes Symphony, the online chat service backed by some of Wall Street’s biggest banks and Thomson Reuters, IFR’s parent. That raised US$63m last quarter to value it at US$1bn. Two other US fintech firms that raised money in the quarter also joined the unicorn list - Clover and robinhood - along with Tuandaiwang from Asia, valued at US$1.5bn. (Reporting by Steve Slater)

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