Investors have been pouring money into U.S. based financial technology companies for quite some time now. Investments are on the rise through the first half of 2018, according to a report released by KPMG at the end of July. The report indicated that investors put up more than $14 billion to invest in fintech companies between the beginning of January and the end of June with $8 billion total coming in the second quarter of 2018. It represented an increase from the $12.2 billion invested in fintech companies in the last six months of 2017.
It appears investors have spread their wealth around, too, investing in several fintech opportunities in recent months.
Investments have targeted startups committed to regtech and blockchain in addition to late stage companies, which seems to indicate that investors are spreading their risk amongst early stage, established and market leading companies. Blockchain investments, in particular, totaled more than $850 million in the first half of 2018, signaling a growing interest in blockchain and what it might have to offer in the coming years as it pertains to banking and financial services.
It appears this trend may continue with more traditional banks investing in fintech initiates, both internally and externally. Many banks are announcing their own “fintech type” initiatives Separately, there are also lots of “blank check companies” that are starting to pop up throughout the U.S. These companies don’t have a specific purpose just yet, but about 25 percent of them have announced that they’re interested in using the money they’ve raised thus far to invest in fintech. They’re waiting for the right opportunity to come along and ready to aggressively pursue their options.
It’s clear fintech isn’t going to go anywhere anytime soon. It’s also clear there are lots of investors pursuing fintech companies in the U.S. Portfolio Financial Servicing Company is here to provide financial services to those wishing to take advantage of the economic boost fintech is continuing to provide. Contact us today to see how we can help you.