As published on altfi.com, Monday January 13, 2020.
Australia saw over $1.4bn raised by fintech companies in the country in 2019 across 38 deals, a new record, thanks to rising numbers of funding rounds above $100m, according to data from the FinTech Global.
Of this total nearly three quarters (72.8 per cent) was invested in transactions valued at or above $100m while the amount invested in deals below $100m has remained fairly flat since 2017.
Last year’s record fundraising accounted for nearly half (47 per cent) of the total capital raised in the country over the past four years . Of the top 10 deals, one was raised in Q1 2019, one in Q2 2019, six in Q3 2019 and two in Q4 2019.
Wealthtech and marketplace Lending companies are the most popular areas for investment, accountinng for nearly 60 per cent of fintech funding in Australia since 2015. Wealthtech companies are responsible for 31.4 per cent. Marketplace Lending companies in the country account for 26.9 per cent of investment in the country between 2015 and 2019. The largest deal of 2019 was raised by AMP in Q3 2019. AMP offers wealth management solutions to customers in Australia and New Zealand. The company raised $650m in a Post-IPO-equity round in August 2019.
The largest deal raised in Q4 2019 came from Athena Home Loans led by AustralianSuper. The company raised $47.9m in a Series C round and plans to use the capital to allow growth of the business into offering loans for property purchases, a substantially bigger market than it currently reaches.
Reinventure and AirTree Ventures were the most active investors in Australia between 2015 and 2019. Of the top 10 investors, seven are venture capital firms (Equity Venture Partners, Alium Capital, Square Peg Capital, AirTree Ventures, Reinventure, BridgeLane Capital and AMP New Ventures), with the other three being two accelerators (H2 Ventures and Startupbootcamp) and an investment bank (Westpac).