Blockchain
Fintech mega-deals lead to record-breaking $120 billion transaction value in 1H2019, reveals Hampleton Partners’ research report
- Fintech M&A deal volume reaches three-year high with 198 deals in 1H 2019, up from 164 in 2H2018
- Global venture capital investment in fintech achieves record-level in Q2 2019 with $10.9 billion raised[1]
London, UK – 20 August 2019 – Three fintech mega-deals totalling $87 billion set the scene for a record-breaking $120 billion in disclosed transaction value for the sector in a ‘white-hot’ first half of 2019, reveals Hampleton Partners, in its latest global Fintech M&A Market Report.
Hampleton Partners, which specialises in international technology M&A and corporate finance, noted that all three of the top transactions were in the payments processing segment: Fidelity National Information Services acquired Worldpay for $43.6bn; Fiserv acquired First Data for $22bn and Global Payments acquired Total System Services for $21.2bn.
Hampleton’s report pointed to a revitalised M&A market since the slump in 2H2018, as well as an overall trend for larger deal sizes: 65 per cent of deals exceeded $100 million in 1H2019, compared to only 54 per cent in 2018 (disclosed deal values).
Jonathan Simnett, director and fintech specialist, Hampleton Partners, said: “The fintech M&A market is white-hot in Europe and North America. Financial businesses and institutions are increasingly open to adopting large-scale fintech in transaction processing or enterprise financial software, and as the financial services industry re-structures, competition for game-changing assets is increasing.”
Fintech fundraising continues to break records
Fundraising in fintech continues its record-breaking course. With 818 fundraises so far in 2019, the anticipated annualised figure of 1,636 would set a new annual record, narrowly beating those figures recorded in 2017 (1,632) and in 2016 (1,633). Furthermore, excluding the Ant Financial deal of June 2018, Q2 2019 recorded the most fintech fundraising ever with $10.9 billion raised.
All this confirms that, while they seem to be gradually multiplying in number, fintech funding rounds in North America and Europe are becoming larger. However, Asia is not currently sharing the same level of fundraising success, with fundraise count and value stagnating.
Enterprise financial software
Excluding the three mega-deals in payments processing, enterprise financial software remained the largest fintech sub-sector, with over 75 per cent of remaining disclosed deal value and just under 50 per cent of all deal volume – 98 deals.
Significant deals in enterprise financial software included Thoma Bravo’s acquisition of Ellie Mae, a provider of mortgage loan origination, for $3.7 billion, making it the fourth largest transaction of 1H2019, at 7.5x EV/S.
Key trends in fintech
As challengers use their agility to attract new customers, legacy players are forced to acquire the necessary technology to compete. Investors and acquirers will tend towards targets that focus on automation via disruptive technology, such as real-time payment processing technology; AI chatbots (expected to save banks $7.3 billion annually by 2023); and mobile banking, as in-person branch visits are set to fall 36 per cent between 2017 and 2021.
Challenger banks like Chime, OakNorth or N26 will also continue to grow, whilst regtech is on the rise, allowing firms to stay compliant through cloud-based platforms and machine learning.
Meanwhile, blockchain utilisation continues to spread through collaborative platforms like Bitpay with Visa.
The future of fintech fundraising
Jonathan Simnett concluded: “The heat is being applied to fundraising, auguring well for future large-scale fintech exits. 2Q2019 proved to be the largest quarter ever for fintech fundraising, with Europe already exceeding its 2018 annual record. As Europe and North America power ahead of the currently moribund Asian fintech fundraising market, we expect this to yield several large-scale fintech M&A transactions in the future.”
[1] Excluding Ant Financial’s €14 billion round in June 2018
ENDS
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Note to Editors:
Hampleton Partners’ Fintech M&A Market Report is compiled using data and information from the 451 Research database (www.451research.com) and from CapitalIQ, a product of S&P Global.
Download the full Hampleton Partners’ Fintech M&A Market Report: https://www.hampletonpartners.com/reports/fintech-report/
About Hampleton Partners
Hampleton Partners is at the forefront of international mergers and acquisitions and corporate finance advisory for companies with technology at their core. Hampleton’s experienced deal makers have built, bought and sold over 100 fast-growing tech businesses and provide hands-on expertise and unrivalled advice to tech entrepreneurs and companies which are looking to accelerate growth and maximise value.
With offices in London, Frankfurt and San Francisco, Hampleton offers a global perspective with sector expertise in: Automotive Technology, IoT, AI, Fintech, Hi-Tech Industrials & Industry 4.0, Cybersecurity, VR/AR, Healthtech, Digital Marketing, Enterprise Software, SaaS & Cloud and E-commerce.
Follow Hampleton on LinkedIn and Twitter.
For more information visit https://www.hampletonpartners.com
Source: RealWire
Blockchain
Ebang International Reports Financial Results for Fiscal Year 2023
Blockchain
FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers
A recent warning from the FBI regarding a crypto money transmitter seems to be aimed at the Samourai Wallet. This development highlights the increasing scrutiny and regulatory challenges faced by privacy-focused cryptocurrency wallets and services.
The FBI warning raises concerns about the use of certain cryptocurrency wallets that prioritize user privacy and anonymity, potentially enabling illicit activities such as money laundering and terrorist financing. While the warning does not explicitly name any specific wallet or service, the language used suggests that the Samourai Wallet may be the target of the advisory.
Samourai Wallet is known for its focus on privacy and security features, including coin mixing and stealth addresses, which aim to enhance user privacy and protect against surveillance and tracking. However, these features have drawn the attention of law enforcement agencies and regulators, who are increasingly concerned about their potential misuse by criminals.
The FBI warning underscores the challenges faced by privacy-focused cryptocurrency wallets in navigating regulatory compliance and law enforcement scrutiny. While these wallets aim to empower users with greater control over their financial privacy, they must also address regulatory requirements and law enforcement concerns to avoid legal and reputational risks.
As the cryptocurrency industry continues to evolve, privacy-focused wallets like Samourai Wallet will need to strike a balance between privacy and compliance, ensuring that they can provide robust privacy features while also addressing regulatory concerns and maintaining transparency with authorities. This delicate balance is essential to foster trust and confidence among users and regulators alike, ultimately enabling the continued growth and adoption of privacy-enhancing technologies in the cryptocurrency space.
Source: cointelegraph.com
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Blockchain
Pantera Capital Plans to Raise $1 Billion for New Fund Offering Exposure to Crypto Assets
Pantera Capital is reportedly planning to raise $1 billion for a new fund that offers exposure to various crypto assets, as reported by Blockchain.News. This ambitious fundraising initiative underscores Pantera’s continued confidence in the potential of the cryptocurrency market and its commitment to providing investors with diversified investment opportunities in the digital asset space.
The new fund from Pantera Capital aims to capitalize on the growing demand for exposure to cryptocurrencies and blockchain-based assets among institutional and retail investors. By offering a comprehensive portfolio of crypto assets, the fund seeks to provide investors with access to a wide range of investment opportunities, spanning cryptocurrencies, tokens, and other digital assets.
Pantera’s decision to raise $1 billion for the new fund reflects its optimistic outlook on the long-term growth prospects of the cryptocurrency market. With increasing mainstream adoption and institutional interest in cryptocurrencies, Pantera sees significant potential for value creation and capital appreciation in the digital asset space.
As one of the leading blockchain-focused investment firms, Pantera Capital is well-positioned to attract capital from investors seeking exposure to the cryptocurrency market. The firm’s track record of successful investments and its experienced team of investment professionals are likely to bolster investor confidence and support for the new fund.
Pantera Capital’s plans to raise $1 billion for its new fund underscore its commitment to driving innovation and growth in the cryptocurrency market. As the fund attracts capital and deploys it into promising investment opportunities, it is poised to play a key role in shaping the future of the digital asset ecosystem.
Source: blockchain.news
The post Pantera Capital Plans to Raise $1 Billion for New Fund Offering Exposure to Crypto Assets appeared first on HIPTHER Alerts.
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