The hype around digital wallets and online transactions helped deal activity to remain strong in payment tech space in 2018
The payments technology space remained hot in 2018 as several venture capital (VC) investors ranging from Sequoia Capital to Tiger Global Management to Ribbit Capital continued to grab a piece of this massive industry, says GlobalData.
All the top 10 global VC investors (Sequoia Capital, Digital Currency Group, Andreessen Horowitz, Pantera Capital Management, Danhua Capital Management, Tiger Global Management, IDG Capital, DST Global, Ribbit Capital and Silicon Valley Bank) registered an increase in investment volume in the payment tech space in 2018 compared to the 2014-2017 average. On the other hand, all, except Silicon Valley Bank, reported an increase in investment value.
The top 10 VC investors participated in more than 70 funding rounds in 2018 compared to an average of around 40 funding rounds during 2014-2017. Total proportionate investments by these investors stood at around $2.5 billion in 2018 compared to an average of around $355 million during 2014-2017.
The spike in the investment value in 2018 can be majorly attributed to Sequoia Capital’s participation in $14bn funding round for Ant Financial in June 2018, which is the single largest fundraising ever by a private company. Sequoia Capital has topped the list in terms of both investment volume and value in 2018.