#Future Vision

Breakdown of Global Fintech Investment by Region

Autonomous Research has found that global Fintech investments by region have grown from a total of $2.5 billion in 2012 to over $17 billion in 2016. Although there have been notable increases in investments in North America and Europe, Asia has grown most rapidly with investments in the region rising from $0.2 billion to $8.5 billion over the past 4 years.

Analysis of the share of global Fintech deals depicted by region tells us how the quantity of deals made in each region has fluctuated over recent years. North America remains the leader in Fintech deals, but has been experiencing an incrementally lower share of the total deals globally. Europe has maintained steady growth and now represents 28% of all deals, up from 22%. Asia once again has experienced the greatest growth having more than quadrupled the number of deals between 2012 and 2016. The correlation between the global share of the amount of deals and the total investments received in Asia can be explained by the fact that six of the seven largest Fintech companies come from Asia.  Deals and investments from other countries remain fairly constant with only minor fluctuations.

The Attention Economy and New Revenue Streams from Social Media

The above graph shows that celebrities can now use social media as a source of income, with Twitter being a primary example. Musician Snoop Dogg would receive $8000 a tweet as a result of his 6.2 million followers, Paula Abdul would receive $5000 with her 2.2 million followers and Whitney Port would receive $2500 at 0.8 million followers.

This new pay structure has developed as entertainers begin to receive declining sales on music and media with the advent of streaming sites, such as Spotify, Soundcloud and Youtube, providing free access to content. As a result, influence has become a new form of currency, where firms will pay considerable amounts for sponsored tweets that have the potential to reach millions. Twitter is not the only platform incentivising influencers and entertainers, the same can be said for Youtube, Snapchat, Twitch and Instagram as businesses aim to appeal to the ever growing digital savvy populace.

Analysis of Global Fintech Investment

Autonomous Research has estimated the Global Fintech Venture Capital Investment to be $17.7 billion in total capital across 1556 deals in 2016. Compared to 2015, these figures represent an 8.3% increase in total capital received by Fintech start-ups and a decrease of 6.4% in number of investments. Despite this decrease, the CAGR across 2012-2016 stands at 62% for total capital invested and 22% for deal count. As a result, we find that the average capital per deal is growing steadily and new Fintech entrepreneurs are being supported by increased venture financing.