There is also an overall fall in average deal value.
The latest KPMG's Pulse of Fintech report noted that in
Singapore, overall investment in fintech companies saw a 64.6% drop from
US$605m to US$214m ($301.4m) in 2016. This came as the number of deals only
decreased by two to 28 in 2016, indicating an overall fall in average deal
value.
Meanwhile, KPMG noted that in Singapore, many of the larger
VC fundings were concentrated among online payments, remittances, or foreign
exchange trading platforms.
In terms of capital injected through venture investment in fintech
companies, the number of deals recorded was the same in 2015 at 25, however,
the capital went down from $172m to $79m.
KPMG Singapore Head of Digital Village Jan Reinmueller said
the Monetary Authority of Singapore is working very closely with companies to
enable innovation in the financial services sector.
"From developing the regulatory sandbox to building
fintech bridges with other jurisdictions, there's no doubt in my mind, the MAS
is one of the main reasons Singapore is becoming a global hub for fintech
companies," he noted.
Zooming on a global scale, 2016 experienced a decline in the
market with a 47.2% slide in fintech investment, with total funding down to
US$24.7b from US$46.7b and the deal activity dropping from 1,255 to 1,076. On
the other hand, VC funding to fintech companies reached a record US$13.6B
compared to US$12.7b in 2015, with 840 deals recorded.
In Asia, total investment reached a new high of US$8.6b,
despite a drop-off in deal activity.
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