Business of Fintech
Where VCs are investing in fintech – Q2 2016 edition
- 35% of Q2 investment ($500M) went into non-U.S. companies
- Insurtech investing heating up

The end of the second quarter of 2016 is upon us and it’s time to review the portfolio moves of some of the top venture capital investors in fintech.
By following the money flow, we can find insight into trends and perhaps get a view into what types of companies are being financed with growth capital for the future.
We looked at 40 VCs that, in aggregate, made $1.3 billion worth of fintech investments in over the past three months, and identified a few trends that we feel are the most important.
Trend #1: Non-U.S. investments
Of the VC’s surveyed, 35% invested a total of $500M into companies outside the U.S., including Europe, Asia, South America, and the Middle East. Portfolio companies of note include:- TransferWise: International transparent money transfers ($26M Series D)
- Nubank: Digital financial services company in Brazil ($25M in debt)
- Capital Float: Digital finance company targeting SMB’s in India $25M Series B )
Trend #2: Investing in B2C businesses
Another trend worth acknowledging was investment in B2C fintech companies. Over 65% of VC’s invested a total of $944M in B2C fintech companies. Companies receiving investments included:- Circle: International online payments ($60M Series D)
- Digit: service that checks spending habits and automatically sweeps money into savings when possible ($22.5M Series B)
- Better Mortgage: helping consumers get better mortgages online ($30M Series A)
Trend #3: Investing in insurtech
The last trend worth looking at is insurance technology. Although not as significant as the previous trends, funding in insurance startups should be taken seriously. Some notable companies include:- Clover Health: Low cost healthcare provider ($160M Series C)
- Jetty: Property and casualty insurance targeting millennials ($4M Seed)
- Bright Health: Affordable health insurance plans ($80M Series A)