Although 2015 was a record-setting year for venture capital (VC), investors are becoming stingier with their funding, according to a recent global analysis by KPMG Enterprise and CB Insights. And the financial services technology sector, or “fintech,” in particular may suffer from a drop in VC investment, the companies said in their joint report for the fourth quarter, the Venture Pulse Report. The companies noted that overall VC investment increased by about 44 percent from 2014 to 2015, topping $128 billion worldwide. However, after two strong quarters, VC investment dropped from $38.7 billion in the third quarter to $27.2 billion in the year’s final quarter, while the number of deals hit a low not seen since the first quarter of 2013. "The drop in VC investment signifies a shift in thinking as global investors seem to be taking a less bullish view of the market,” the companies concluded in their report. “An uncertain global economy, a projected slowdown in...
- Venture capital investment dropped in last year’s final quarter, while the number of deals hit a low not seen since the first quarter of 2013.
- The proliferation of fintech real estate industry startups like Social Finance and Fundrise may dwindle in 2016 as a result of an uncertain global economy.
- A creative product won't be enough for companies seeking venture capital investment this year. They'll need to show how their idea will make money.