Hampleton Partners’ analysis of growth capital reveals that 2018 marked another record year for global venture capital financing, with a total disclosed value of $185 bn (€165 billion) raised across more than 12,500 transactions.
The international technology M&A and growth finance advisors reveal that total transaction volume grew five per cent per year from 2014 to 2018 across the globe, while total value raised grew by 13 per cent, suggesting that funding rounds are becoming larger.
The Asia-Pacific region registered the largest number of deals in 2018 at 6,676, followed by North America with 5,640 and Europe with 2,601.
Asia-Pacific also charted the highest growth in absolute value, propelled by the increasing prevalence of massive investment funds such as Softbank’s $100 billion Vision Fund and Tiger Global’s new $3.75 billion tech fund, both having contributed to some of the record 21 new Asian unicorns born in 2018.
Over a four-year period, Europe walked away with the highest relative growth, witnessing a 24% CAGR over three years, with the number of deals having doubled since 2016. The proliferation in Europe of early stage funding rounds and the higher value they generate are the result of favourable government programmes, thriving tech hubs from Stockholm to Berlin, and a highly active and maturing investor environment.
Supergiants and Unicorns
“Supergiant” funding rounds – venture capital rounds generating funds in excess of $100 million – are becoming commonplace. 2018 saw 515 supergiant rounds, more than 2017 and 2016 combined. Although they accounted for only two per cent of all rounds worldwide, they secured a massive 56 per cent of the total $185bn value raised.
There was also an all-time high of 106 unicorn births during 2018, dwarfing the combined 2016 and 2017 total of 73.
Miro Parizek, founder and principal partner, Hampleton Partners, said:
“We’ve witnessed the highest level of venture capital investment on record, both in volume and value terms. This has included an unprecedented increase in the number of supergiant rounds and new unicorn births, in addition to growth in all median sizes of funding rounds. The total value of all unicorns has also inched above $1 trillion.
“This seemingly boomish growth is driven by the new wave of start-ups causing extreme disruption in traditional industries such as automotive, retail, security, and healthcare in addition to the larger start-ups continuing to fundraise from favorable private markets. While lights are bright green for the VC markets, this high growth in all metrics may also be a signal of overheating markets of increasingly cash-rich funds making increasingly risky investments.
Most active investors
Hampleton’s report identifies the most active investors in the EU and US. In the US, 500startups racked up 398 investments, followed by Y Combinator (374), Sequoia (305), Techstars (221), Plug and Play Ventures (188), Matrix (168) and Accel (163).
In Europe, Index Ventures tops the chart with 92 investments, followed by Partech (90) and High-Tech Gründerfonds (74), Kima Ventures (63), Balderton Capital (43), Octopus Investments (38) and EQT (38).
The most valuable company on 2018’s unicorn list is Bytedance, a Chinese machine learning content platform. Bytedance was valued at $75bn in its October fundraise in a round led by Softbank and joined by KKR and General Atlantic.
Fintech proved to be the most popular sector for investors, as consumer solutions aiming to revolutionise the banking and payments industry gained traction. Among the new unicorns born out of the rounds completed by Ant Financial or JD Finance in the second half of 2018 were N26, Plaid Technologies, Viva Republic and Monzo.
Autotech investment took second place with the highest number of VC investments in car-related businesses on record, totalling 355 vs. 325 in 2017, though total equity value raised was down to $13.5bn (€12bn) from a $25bn (€22bn) high in 2017, which was achieved after several mega-transactions by Softbank.
New autotech unicorn births included Aurora, Momenta, Xpeng and pony.ai.
UBS Managing Director Choo Oi Yee To Join iSTOX As Chief Commercial Officer (CCO)
iSTOX, the first regulated platform in any major global financial center to offer end-to-end issuance, custody, and trading of digitized securities, is pleased to announce the appointment of Choo Oi Yee as its first Chief Commercial Officer (CCO).
Choo has over 20 years of experience in the investment and banking industry, most recently as Managing Director and Head of Singapore Corporate Client Solutions for UBS, where she was responsible for UBS Singapore’s investment banking business. In her new role at iSTOX, Choo will be a key member of iSTOX’s management team responsible for driving the company’s overall business growth by building its network of investors and issuers. She will join the iSTOX team in January of 2020.
“I see some truly fundamental changes on the horizon for capital markets and I believe that Singapore — and the iSTOX team — are uniquely well positioned to take advantage of them,” she said. “I’m very excited to be joining the team and look forward to helping iSTOX grow into the platform of choice for 21st century issuance and investment.”
Choo’s appointment comes at a strategically important period for the company; iSTOX has initiated plans to grow its base of issuers and investors as it works towards graduation from MAS’s Fintech Regulatory Sandbox in early 2020.
“It was clear to us that we needed someone with Oi Yee’s stature, reputation, and experience for our CCO role. Among other requirements, we needed someone with deep securities, issuance, and trading experience at a very senior level; someone with outstanding relationships with major institutional investors, business leaders, family offices, and others; and, most importantly, someone with a deep and instinctual understanding of the challenges and opportunities facing issuers and investors,” said Danny Toe, Founder and Chief Executive Officer of ICHX.
“We are pleased to welcome Oi Yee to the team as we open up applications for iSTOX investor accounts and plan an exciting issuer pipeline ahead of our projected sandbox graduation early next year,” said Darius Liu, Co-Founder and Chief Strategy Officer of iSTOX.
Euromoney TRADEDATA Partners With UK FinTech ipushpull to Create On-demand ‘Data-as-a-service’
Euromoney TRADEDATA is pleased to announce a strategic partnership with ipushpull, a powerful data sharing and workflow platform.
Euromoney TRADEDATA recognises that the on-demand model is the future of data consumption, particularly within community chat and messaging networks, as part of a suite of delivery systems required to service all parts of the market that need futures and options reference data.
Through a single connection to ipushpull, Euromoney TRADEDATA can distribute data into a variety of applications including Symphony, the secure collaboration platform, with nearly half a million connected financial market users. The ipushpull platform provides Euromoney TRADEDATA with new distribution channels for secure, audited, access-controlled data delivery.
Mark Woolfenden, Managing Director of Euromoney TRADEDATA, comments:
“This is a very important integration for Euromoney TRADEDATA, as we begin to experiment with embedded, on-demand workflow functionality and delivery systems for our reference data. We recognise ipushpull as a leading exponent in data sharing workflow technology and we expect further benefits from their connections to other community messaging solutions. Also, as part of the offering, we can now offer a functionally rich Excel plugin for desktop users to access our reference data, which integrates seamlessly within users’ existing workflows. In addition, we look forward to working with ipushpull to develop a clutch of bots, to further enhance our customers’ experience in using our data services.”
Matthew Cheung, CEO of ipushpull, comments:
“We’re excited to offer Euromoney TRADEDATA new avenues to deliver and monetise their data to a variety of desktop and cloud services. We see this innovative approach as the first step towards an on-demand ‘Netflix’-style distribution model for data producers and consumers.”
SOURCE Euromoney TRADEDATA; ipushpull
360 Finance’s LendingAdda Launches Diwali Offers
LendingAdda consumer lending marketplace owned by parent company 360 Finance (NASDAQ: QFIN) announces Diwali offer for credit card holders. On 6th October, SBI announced a bumper Diwali offer for its credit card holder; on 10th October, the State Bank of India approved a ten percent discount for its credit card users; on 14th October, LendingAdda launched the credit card function, and AMEX, SBI, Citi banks’ cards are included.
Due to India’s inefficient banking system, most people do not have a credit history, which leads to lower utilization of credit cards and limited accessible for many.
In this condition, fintech companies empower people’s lives compared with banks. LendingAdda, a digital finance platform, has integrated more diversified financial services. Its innovative data-driven and behavioral risk management models can help overcome barriers that arise from a lack of widespread and robust credit scoring.
Prantik Ray, professor of finance at XLRI-Xavier School of Management at the University of Minnesota, has stated that digital finance can be instrumental in providing credit ratings and potentially be leveraged in other areas. In essence, online finance can help create more possibilities in people’s lives.
LendingAdda evaluates a user’s credit based on big data and selects the most suitable loan and credit card product offers for consumers using intelligent matching. So far, it has offered lending services to more than 4 million Indians, and the number of borrowers is multiplying.
Most importantly, LendingAdda’s products cover almost every part of a user’s daily life: microfinance, credit cards, commercial loans, mortgages, auto loans, medical loans, education loans, etc., and its interest rate is usually lower than banks.
Additionally, LendingAdda has a higher credit line (up to 10 lakhs), which can almost always meet the borrowing needs of consumers, and the money arrival rate is less than 5 minutes, which was much faster than the bank.
With the help of LendingAdda, Moham finally got his wish of buying an iPhone for his girlfriend, which he thinks will help him bring greater happiness to his life.
How does LendingAaad help people accomplish their dreams?
Compared with many other enterprises, LendingAdda has world-class technology that enables it to offer a highly secure lending process with tailored products and services that help serve the daily lives of its users.
SOURCE 360 Finance, Inc.
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