Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Corporate venture capital deals hit new record as banks invest in fintech competitors
CNBC | Kate Rooney | Dec 10, 2019
See: Goldman Sachs is slashing employee pay as it ramps up new tech ventures like the Apple Card
Corporate venture capital funding is at an all-time high and banks are leading the charge.
Investments by financial services firms into start-ups hit a record 329 deals worth a total $8 billion in 2019, according to a report by CB Insights published Tuesday. Nearly half of that deal activity this year came from banks.The third quarter saw the highest deal activity on record by financial services venture capital.
A handful of established companies — from Google to Airbus to American Express — have their own venture capital arm to make early stage investments. They can form strategic partnerships with the start-ups to learn from their technology, and have an early look at companies as potential acquisition targets. And much like traditional venture capital does, they eventually profit if these investments do well. The equity investments are often a way to “future proof,” according to CB Insights.
Banks are “rapidly accelerating” deal activity, with annual deal activity increasing by 8 times between 2014 and 2018, according to the report.
Investing in start-ups is becoming increasingly important for Wall Street banks as they look to diversify as their key profit engines get squeezed by falling interest rates. There’s also pressure from new fintech options like Square, PayPal, Wealthfront and Robinhood which have debuted many of the same services with zero fees.
Financial services corporate venture deals surged 500% from 2014 through the third quarter of 2019. Nearly half of the total financial services deals are in California.
Citi Ventures is the most active when it comes to deal flow with 66 venture deals, compared to 64 by Goldman Sachs’ VC arm.
See: RBC leads $20 million Highline Beta fund that helps start-ups sell to large corporations
Goldman has backed the most so-called unicorns with five companies valued at more than $1 billion. Its bets include Plaid, Circle and Marqeta.
Six other financial services groups have invested in three or more unicorns. American Express Ventures came in at number three with 55 deals since 2014.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Want to get insider access to some of the most innovative advances happening in #fintech. Join us May 31, 2023 in Toronto for an in-person 7th Summer Kickoff Networking! |
Related Posts
Liquid Avatar Technologies and Dynamics Inc. Tap Payment Infrastructure for Verification of Digital Credentials
Fintech Fridays EP58: Using Risk Management to Improve Your Business and Life
6 Finance Apps You Need To Know About
Etherparty ICO Briefly Falls Prey to Cyber Attack
Crowdfunding start-up Seedrs raises £1m through its own website
Ant’s Global Payment Aggregator Now Has 1 Billion Users
Leave a Reply