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Robust end to 2019 with US$63.1 billion raised by VC-backed companies in the fourth quarter, according to KPMG Private Enterprise’s Venture Pulse report

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Vlad Poptamas

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The final quarter of 2019 brought a small uptick in VC investment globally, with $63.1 billion in VC investment across 4,289 deals, led by a $6.55 billion corporate investment in The We Company – a strategic investment by Softbank following WeWork’s failed IPO. Given the array of political and economic uncertainties affecting most regions of the world in Q4’19, it is notable that the Americas, ChinaIndia, and Europe all saw at least one $1 billion+ deal during the quarter.

As a whole, 2019 was a very strong and relatively stable year for VC funding, with $257 billion raised across the globe – the second highest level on record next to 2018’s over $300 billion, according to the Q4’19 edition of KPMG Private Enterprise’s Venture Pulse report. The robust results are notable given the year did not include any massive $10 billion+ megadeals like those raised by Juul ($12.8 billion) and Ant Financial ($14 billion) in 2018.

“The results highlight the strength that comes with having a diversity of growing startup ecosystems around the world. While different jurisdictions may have experienced challenges at different points of 2019, VC investment in others picked up the slack,” explained Kevin Smith Co-Leader, KPMG Private Enterprise Emerging Giants Network, KPMG International and EMA Head of KPMG Private Enterprise. “Europe, in particular, shattered its previous annual high of VC investment, attracting $37.5 billion in 2019 and set a new record, with 18 new unicorns in 2019 compared to 12 in 2018 and only 6 in 2017.  The breadth and diversity of Europe’s VC market and growing innovation ecosystems continued to attract deep pocketed investors from across the globe, with companies in the UK, Germanythe NetherlandsSpainLithuaniaIsrael, and France all attracting $100 million+ funding rounds.”

Q4’19 Highlights

  • Global VC investment rose from $62 billion across 5,453 deals in Q3’19 to over $63 billion across 4,289 deals in Q4’19. The US alone accounted for more than half of VC investment globally during
  • Q4’19, with $34.2 billion of investment across 2,215 deals.
  • At a regional level, the Americas led VC investment in Q4’19, with $36.2 billion raised across 2,400 deals. Asia followed with $18.7 billion raised across 1,021 deals, while Europe saw $9 billion raised across 804 deals.
  • The largest deals this quarter occurred in three different countries: US-based The We Company ($6.5 billion – corporate investment), China-based Tenglong Holding Group ($3.7 billion – Series A), and India-based PayTM ($1.7 billion – Series G).
  • The percentage of investment by corporates reached an all new high in Q4’19, with corporates participating in 29.4% of all VC deals globally.

Key 2019 Annual Highlights

  • For the third consecutive year, global median deal sizes rose across all deal stages in 2019 – to $1.7 million for seed/angel deals, $8 million for early stage deals, and $10.3 million for later stage deals.
  • The global median deal size for Series D and higher was $58 million in 2019, up from $50 million in 2018 – and more than triple the $15.9 million it was in 2013.
  • For the third year in a row, global median pre-money valuations rose across all deal stages in 2019, including to a massive $423.5 million for Series D or later rounds. Other global median pre-money valuations were $7 million for seed stage rounds, $22 million for Series A, $70 million for Series B, and $150 million for Series C deals.
  • The number of global first-time venture financings of companies dropped for the fifth year in a row – to 5,878 in 2019. Deal value in 2019 was $23.9 billion – second only to 2018’s $29.7 billion. The combination suggests that investors are scrutinizing deals heavily and investing more in companies with stronger business fundamentals.

US continues to dominate investment in Americas

VC investment in the Americas rose slightly, from $34.6 billion in Q3’19 to $36.2 billion in Q4’19. The largest deals in the Americas came from the US, including the $6.5 billion corporate investment in The We Company, a $700 million raise by Door Dash, a $635 million raise by Bright Health, and a $500 million raise by Magic Leap. The 10 largest deals in the US spanned numerous sectors, including real-estate, food delivery, health care, virtual reality, fintech, publishing, and logistics. The top deals also showed strong geographic diversity, with several deals well outside of Silicon Valley – such as in Florida (Magic Leap), Minneapolis (Bright Health), Seattle (Convoy), and Portland (Vacasa).

Despite small quarter-over-quarter declines in VC investment, Canada and Brazil both saw strong VC investment for the year as a whole, including a number of $100 million+ megadeals during Q4’19. In Canada, top deals included a $200 million raise by Toronto-based password management company 1Password. In Brazil, annual VC investment grew year over year – from $1.7 billion in 2018 to almost $2.1 billion in 2019 – setting a large new annual record. Brazil also saw three new unicorns created in 2019, including three in Q4’19: Loggi, QuintoAndar and Wildlife Studios.

Europe shatters annual record for VC investment

Europe shattered its previous annual high of VC investment, attracting $37.5 billion in VC investment in 2019 compared to $28.2 billion in 2018. After setting a new quarterly record of $10.8 billion in VC investment in Q3’19, VC investment dropped to $7.9 billion in Q4’19 – still a very robust amount for the region.

The UK proved fundamentally resilient to concerns around Brexit, attracting a record high $11.9 billion in VC investment during 2019, including more than $2.5 billion in Q4’19. Large deals in Europe during Q4’19 included a $525 million raise by UK-based Deliveroo, a $284 million raise by Celonis in Germany, and a $276 million raise by Picnic in the NetherlandsGermanyFrance, and Spain also reached new annual records for VC investment in 2019.

VC investment in Asia falls year-over-year

After achieving a massive record of $126 billion in 2018, Asia-based VC investment fell to $73 billion in 2019. On a quarterly basis, VC investment rose slightly to $18.7 billion in Q4’19, led by a $3.7 billion Series A round by Tenglong Holding Group in China, a $1.7 billion raise by PayTM in India, and a $1 billion raise by China-based Beike.

VC investment in China remained steady quarter-over-quarter at $11.1 billion, although the two largest deals in China accounted for $4.7 billion of this total during Q4’19. With four consecutive quarters of growth – including its second highest quarter of investment in Q4’19 ($4.6 billion), India achieved a new annual record high of over $12.5 billion in VC investment in 2019. Australia also saw its second-highest quarter of VC investment in Q4’19 ($339 million).

Future outlook positive, yet cautious

The challenges associated with WeWork’s IPO, combined with the mixed results associated with other unicorn IPOs during 2019 raised significant concerns regarding the profitability of companies – particularly unicorn companies on the path to IPO. These concerns will likely have VC investors undertaking more due diligence with respect to potential deals. Companies without strong business models and paths to profitability will likely find it more challenging to raise funds in the future.

“In 2019, we saw numerous unicorn companies IPO with a broad range of outcomes. Over the next few months, we’ll likely see this IPO activity continue as companies look to get out before the November presidential election in the US,” said Conor Moore, Co-Leader, KPMG’s Emerging Giants Network. “However, we are going to see companies, particularly consumer-focused companies, taking some time to put their financial house in order and to really prove the unit economics of their business models to investors. Profitability or a clear path thereto is going to be a key success factor for IPOs moving forward.”

 

SOURCE KPMG International

Fintech

MTrac 2020 – An Improved Platform to Increase Compliance

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SAN DIEGO, Jan. 24, 2020 (GLOBE NEWSWIRE) — Global Payout Inc. (OTCPink:GOHE) (“Global” or the “Company”) and its wholly owned subsidiary MTrac Tech Corporation (“MTrac”) are pleased to announce that the beta phase of the system improvements to MTrac 2020 has been completed. The platform was augmented to accommodate the growing demands of the regulatory agencies that oversee the financial industry. The MTrac team plans to have all existing clients converted to the new system within 60 days and new clients to be boarded starting February 1st, 2020. MTrac is proud to maintain its front-runner position as a fully compliant, closed-loop payment service company.

The new platform will include a seamless wallet load feature with QR functionality for redemption. That is, a customer can come to a terminal, type in their phone number and quickly add funds to their wallet without having to go through a multi-step process. The user then gets a print out of a receipt that doubles as their redemption coupon for redeeming their wallet funds in exchange for product. With these updated compliance features, MTrac 2020 will allow more banks to join its network, which benefits MTrac clients by allowing them to use a wider variety of card types to load their wallet.

MTrac will continue to innovate and adapt its program to meet the demands of the market while assuring compliance with regulatory agencies and delivering a scalable solution to its clients.

About Global Payout, Inc. (OTC Pink:GOHE)

Since the Company’s inception in 2009, Global Payout, Inc. has been a leading provider of comprehensive and customized prepaid payment solutions. From 2014 to 2017 Global focused on identifying new state of the art technologies in a variety of industry sectors and successfully helped launch MoneyTrac Technology Inc. and other companies within the FinTech space. In 2018, Global completed a reverse triangular merger with MoneyTrac Technology Inc. resulting in Global retaining the wholly owned subsidiary, MTrac Tech Corporation. Global’s current focus is continuing to identify new business opportunities while it reorganizes its future business endeavors. 

About MTrac Tech Corp.

MTrac Tech Corporation, a Nevada Corporation, is a privately held, wholly owned subsidiary of Global Payout, Inc. MTrac is a software technology, sales and marketing, and business development company focused on “high risk” and “high cost” industries. The Company’s flagship product is the MTrac payment platform offering a full-service solution with technology offerings including Payment Platform, Blockchain, Compliance, POS, E-Wallet, Mobile Application and Digital Payment Solutions. We are one network disrupting the status quo. It is MTrac’s creative vision through the use of its innovative technology solution to become the premier service provider offering the “Key to Cashless®.”

Forward-Looking Statements Disclaimer:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are disclosed on the OTC Markets.com website.

Media Contacts:

Global Payout, Inc.
www.globalpayout.com
(702) 790-2511 Ext. 101
Ir@globalpayout.com

MTrac Tech Corp. 
www.Mtractech.com 
(702) 790-2511 Ext. 101
ir@mtractechcorp.com

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2020 Crypto World Summit “The Future of Security Tokens” to Address Latest Blockchain Developments with Leading Industry Experts

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New York, NY, Jan. 23, 2020 (GLOBE NEWSWIRE) — (via Blockchain Wire) Leading experts in the digital money sector will gather at the Crypto World Summit in New York on February 20, 2020 to discuss the latest developments in security token offerings and digital assets, amongst other rising blockchain and alternative financing topics.

The most current SEC laws, rules, regulations, and compliance will be addressed at this 4th International Conference and Workshop streamed live on Fintech World Media.

This premier event features speakers and attendees from a wide range of sectors, attracting a who’s who of the industry.  Other top discussions include: The Future of Bitcoin, The Digital Banking Industry, Blockchain and Real Estate, The ETF Cryptocurrency Market, DAO, Ethereum Investment, and Cannabis Banking Solutions. 

Additionally, a special workshop will give participants a step-by-step walkthrough for creating a security token and running a security token offering (STO).

Crypto World Summit will also offer private VIP networking opportunities. For speaking, sponsorship, tickets, and group discounts contact 2020Fintech at +1 (888) 580-6610 or www.2020fintech.com

Blockchain Wire is the official wire service for Crypto World Summit. Receive 40% discount. Enter promo code “blockchainwire” Register here.

Contact:
2020Fintech
+1 (415) 879-1500
info@2020fintech.com
2020Fintech.com

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BitPay Taps Simplex to Make BitPay App an All-In-One Solution

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Atlanta, Jan. 23, 2020 (GLOBE NEWSWIRE) — BitPay, the world’s largest provider of Bitcoin and cryptocurrency payment services, today announced a partnership with Simplex, the best-in-class processor of fiat-to-crypto transactions, that gives BitPay app users the ability to buy Bitcoin and other supported cryptocurrencies directly in app with a credit card. Users can now buy cryptocurrency, transfer funds, make purchases, buy gift cards and pay friends around the world all from a single app.   

With the addition of Simplex’s credit card purchasing, BitPay aims to improve the overall user experience of the BitPay app. By eliminating the need to navigate a cryptocurrency exchange to fund payments, the company anticipates increased value to users, especially for new users unfamiliar with the space.

BitPay CEO and Co-Founder Stephen Pair said, “Cryptocurrency exchanges can be intimidating for new users. The Simplex integration, however, makes the blockchain payment experience seamless.” Pair added, “Whether converting fiat to crypto to make crypto payments, or converting crypto to fiat to pay with the BitPay card, the BitPay app is an all-in-one solution.”

“A real breakthrough in usability can only be achieved when the leading crypto payment app meets the leader in fiat infrastructure for crypto. We are proud to launch this partnership with BitPay and will work together to add more innovative solutions in the future,” added Nimrod Lehavi, Simplex founder and CEO.  

Simplex, an EU licensed fintech company, is the industry choice for providing fraud-free cryptocurrency purchases via credit card. They list among their many clients industry leaders such as Binance, Bithumb, Xapo and Changelly. Their processing services eliminate fraud and ensure regulatory compliance, in part, by using AI technology to analyze each transaction with proprietary machine-learning algorithms. The Tel Aviv-based company was founded in 2014.

About BitPay

Founded in 2011, BitPay pioneered blockchain payment processing with the mission of transforming how businesses and people send, receive, and store money. Its business solutions eliminate transaction fraud, reduce the cost of payment processing, and enable borderless payments in cryptocurrency and fiat, among other services. BitPay offers consumers a complete digital asset management solution that includes the BitPay Wallet and BitPay Prepaid Visa® Card, enabling them to turn digital assets into dollars for spending at tens of thousands of businesses. The company has offices in North America, Europe, and South America and has raised more than $70 million in funding from leading investment firms including Founders Fund, Index Ventures, Virgin Group, and Aquiline Technology Growth. For more information visit bitpay.com.

The BitPay Visa® Prepaid Card is issued by Metropolitan Commercial Bank, member FDIC, pursuant to a license from Visa, U.S.A. Inc. “Metropolitan” and “Metropolitan Commercial Bank” are registered trademarks of Metropolitan Commercial Bank © 2014. Use of the Card is subject to the terms and conditions of the applicable Cardholder Agreement and fee schedule if any.

Jan Jahosky
BitPay
407-331-4699
jan@bitpay.com Dan Edelstein
Simplex
+972-545-464-238
pr@marketacross.com

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