The latest news from the world of Alternative Finance and FinTech
In the news this week
Global VC-backed fintech funding saw a record-breaking number of deals in Q1 2018. 323 FinTechs secured funding, raising a record $5.4 billion, up nearly 30% from $4.2 billion in Q4 2017. However, research from start-up data specialist Beauhurst has revealed that UK FinTech fundraisings declined from 40 in Q4 2017, to 34 in Q1 2018. In other news, challenger bank Revolut has become a unicorn, after raising $250 million and is now worth $1.7 billion.
Global FinTech funding hits record $5.4bn in Q1
VC-backed FinTech firms raised a record $5.4 billion in the first quarter of 2018, boosted by a dozen mega-rounds of at least $100 million, according to the latest figures from CB Insights. (Finextra)
FinTech start-up Revolut raises $250m to become next UK unicorn
One of the UK’s growing challenger banks Revolut has raised $250 million (£179 million) in Series C funding and is now worth $1.7 billion (£1.2 billion). This new valuation means the FinTech start-up is officially a unicorn. (Evening Standard)
One in 5 finance firms is considering trading cryptocurrencies
A fifth of finance firms are considering getting into cryptocurrency trading within the next year, according to an industry poll by Thomson Reuters. A survey of over 400 Thomson Reuters clients found that one in five is considering getting into crypto, with the majority weighing a push into the market within the next six months. (Business Insider)
There’s been an increase in searches for generic credit card and loans searches recently – are we seeing the impact of lenders tightening their credit-scoring criteria?
Lending Works exceeds £100m milestone
Lending Works has announced that it has surpassed the £100m of lending milestone. The P2P platform – which reached £50m of lending just a year ago – has now lent more than £100m to over 16,000 borrowers since it was launched in January 2014. (Bridging & Commercial)
Lending at the UK’s largest peer-to-peer finance platforms is fast approaching £9bn. Data from the industry’s trade body the Peer-to-Peer Finance Association (P2PFA) showed its eight members reached cumulative lending of £8.96bn at the end of the first quarter of 2018. (P2P Finance News)
Europe FinTech deals dipped to a five-quarter low in Q1 2018, but funding hit a five-quarter high driven by $100 million plus investments to later-stage digital banking startups N26 and Atom Bank
Zopa sees £100m boost from IFISA investors
Zopa saw more than £100m invested through its Innovative Finance ISA (IFISA) in the last tax year, the platform has revealed. The amount easily surpasses the total subscriptions of £17m in the 2016/2017 tax year, when Zopa, and other major players such as Funding Circle and RateSetter, had not yet launched their IFISAs. (P2P Finance News)