Major US Banks Have Invested in Fintech
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Since 2012, the top ten US banks by assets under management have participated in 72 rounds totaling $3.6B to 56 fintech companies.
While investment activity dropped on a quarterly basis in Q1’17, four of the last five quarters have seen over $1B invested into VC-backed US fintech startups.
US banks and their venture arms have been active investors in the private company fintech ecosystem. We used CB Insights data to visualize the fintech investments of the top ten US banks by assets. Specifically, we looked at investment activity from 2012 – 2017 year-to-date.
Key takeaways
Since 2012, the top ten US banks by assets under management have participated in 72 rounds totaling $3.6B to 56 fintech companies.
Ranked by the number of unique portfolio companies, the cohort’s three most active investors are Citi, Goldman Sachs, and JP Morgan Chase — in that order. Citi (including Citi Ventures) participated in 30 rounds to 22 companies, Goldman Sachs in 31 rounds to 25 companies, and JP Morgan Chase in 14 rounds to 13 companies. We also took a different view of these three firms using CB Insights’ Business Social Graph and highlighted where all three co-invested:
Goldman Sachs is focusing on payments, investing in six companies in the space. Between 2012 and 2017 year-to-date, the firm participated in eight financing rounds totaling about $570M. Vietnam-based MoMo operates a mobile wallet and offers branchless banking services for traditionally unbanked individuals and has raised nearly $34M in two rounds with participation from Standard Chartered and Goldman Sachs. Goldman was also the only one of the cohort to invest in real estate fintech companies, namely Cadre and Better Mortgage.
All ten banks have blockchain investments. Eight of the ten became part of R3, a banking blockchain consortium, although Goldman Sachs, JP Morgan Chase, and Morgan Stanley have since exited the consortium.
Although the second largest bank by assets, Bank of America takes the sixth spot on this list, with only six fintech companies in its portfolio. additionally, Bank of America was the only member of this cohort to invest in Bill.com, participating in the company’s $38M Series E. The payments processing platform is valued at nearly $268M, having raised $123M in funding.
Kensho saw lots of overlapping interest, with six of the cohort investing in its $50M Series B, which valued the company at $500M. Kensho applies data analytics and machine learning to financial research.
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