According to the Pulse of Fintech, investment in VC backed fintech companies fell by 24% in the U.S. and 50% globally during the second quarter of 2016. The report attributed the drop to “a tougher climate for marketplace lenders and a drop in mega-round activity."
The 30 largest fintech funding rounds during the first half of 2016 totaled over $4.6 billion in aggregate funding. North America accounted for 19 of these rounds. Fintech early stage deal share in the U.S. fell to a five quarter low in Q2. Seed deal share fell to 21% after taking almost one-third of all U.S. VC-backed fintech deals in the first quarter of this year.