FinTech Funding In New York Drops

FinTech Funding In New York Drops

A recent report has shown that fintech funding in New York is declining despite the fact that deals increase for a second quarter in a row. The res

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A recent report has shown that fintech funding in New York is declining despite the fact that deals increase for a second quarter in a row.

The research conducted by data provider CB Insights (available at: cbinsights.com) took a look at investment trends, top deals, active investors and corporate activity in the financial technology sector.

“If the pace of investment in Q1’17 continues, funding to VC-backed fintech funding would drop 20% from 2016’s dollar total. US fintech deal activity is on pace to fall below 2013 levels at the current run rate.”, said the report.

According to the report, fintech funding to venture capital-backed New York companies dropped by 35 percent on a quarterly basis. There we three New York City companies who were among the top ten US financial technology backed deals during the first three months. These companies are Namely, Tumid and Payfone.

In another highlight, the publication added that the deals in Europe rose significantly, while the funding increased:

“Europe saw a burst of fintech investment in the first three months of 2017, putting total funding dollars on pace to surpass $2.6B at the current run rate. Europe fintech deal activity is on pace to top 2016’s total by 57% if the current pace persists.”

While funding and deals are reportedly dropped in the USA, it managed to raise $1.1 billion in VC-backed fintech start-ups across 90 deals during Q1 `17. On the other hand, Europe raised $667 million across 73 deals during the same period. It remains to be seen whether  European investment is going to live up to the expectations projected by the report.

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