In 2014, KPMG together with AWI and FSC released the “50 Best Fintech Innovators” report, one of the first papers that examined the most prominent Fintech players globally. 5 years on, CFTE is taking an in-depth look at the evolution of these 50 companies.
Whether you have heard of the companies Future Advisor, Borro, LearnBest, Yodlee and Metamako, or not, they pack a serious punch in the world of Fintech. These five firms listed in the KPMG top 50 Fintech list were acquired at various stages after the publication of the report in 2014, for a collective total of more than US$1 billion.
Of the five, only Metamako’s valuation at acquisition was undisclosed, with the valuation of the rest averaging US$270 between them. This is an exit rate that is comparable to industry expectations, but their valuations at acquisition are not.
Using historic exit rates by funding round for US tech firms, it is expected that out of approximately 50 startups selected at random, there would be about ten exits instead of eight (including acquisitions). However, it is also pertinent to note that the valuation of these were much higher compared to the average tech exit.
Around 1% of US tech startups exit with a valuation of US$500 million or more, while five of the Fintech top 50 already exited at this valuation, which is an exponential increase on the expected rate. Is the growing awareness of Fintech a factor in this?
The “Fintech 50: 5 Years in Fintech” report by CFTE presents their milestones, investment deals, growth and talent trends. We examine their hiring, survival rate, changing business models, success against incumbents, and expansion both geographically and in terms of market share.