An uptick in venture capital (VC) funding pushed investment in fintech in the U.S. to $2 billion across 129 deals during the first quarter of 2017, up from $500 million in the year-ago quarter, according to KPMG’s Q2 2017 Pulse of Fintech report.
Total global fintech investment more than doubled quarter-over-quarter to $8.4 billion across 293 deals, up from $3.6 billion in Q1’17. Of that VC firms accounted for 227 deals worth about $2.5 billion.
Investor interest in the U.S. shifted to business-to-business (B2B) solutions and companies that offer to improve the cost efficiencies of mid-and-back office functions, according to KPMG’s analysis. Of the first quarter’s top 10 deals, four involved the B2B market, rather than customer-facing initiatives.
“The U.S. continues to lead the way in fintech investment,” said Anthony Rjeily, leader for Financial Services’ Digital and Fintech practice in the U.S., in a release. “In the short term there could be caution as a result of macroeconomic issues and the expectation of rising interest rates.”
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