FinTech Industry Report 2016

1. About SparkLabs Global SparkLabs Global Ventures is a new seed-stage fund founded by entrepreneurs. We are a global fund that believes exceptional entrepreneurs can be found anywhere, and have invested in 58 companies across the globe since December 2013 including 13 FinTech companies in the U.S., UK, and Sweden. SparkLabs Global was also the only follow-on fund for the inaugural cohort of Barclays Accelerator program.

2. RISE OF FINTECH MARKET SIDE GOVERNMENT SIDE FinTech’s Emergence CUTTING-EDGE ICT TECHNOLOGIES + STARTPHONE ADOPTION CHANGE IN CONSUMER PREFERENCE ON TRANSACTION METHODS DEMAND FOR ALTERNATIVE FINANCE AFTER FINANCIAL CRISIS GOVERNMENT SUPPORT + REGULATORY BARRIER REDUCTION 3 Factors that Drive the Emergence and Growth of FinTech There are three main factors from a consumer perspectives that led to the emergence of fintech innovation and startups. First, new ICT technologies (e.g. SNS, cloud- computing and IoT) combined with the high adoption rate of smartphones allowed consumers to access high quality information that they were not able to find from traditional financial institutions. Second, key customer groups, especially millennials, prefer conducting financial transactions via mobile over other avenues. Third, after the sub-prime financial crisis in 2008, both credibility and profitability of traditional financial institutions declined, which led to increased demand for alternative finance. Lastly, governments around the world started to recognize how the growth of the fintech companies are creating new jobs and boosting economic growth.Thus, they started to take active roles in nurturing fintech startups and lifting relevant regulations to spur innovation and growth in this new frontier.

3. Startups to establish technology companies, such as Tencent and Paypal, are working to disrupt and capture market share from traditional ﬁnancial institutions, which are truly giants compared with the upstarts of today. Just look at a snapshot (slide 8) of assets under management of leading startups in wealth management, such as Wealthfront and Betterment, compared with established institutions such as Bank of America or Morgan Stanley’s wealth management groups. They manage over a trillion dollars compared with a couple billion dollars under Betterment and Wealthfront. The ﬁnancial sector represents 7% of the U.S. economy, and has grown over the past decade but with the loss of trust since the last economic crisis and rapid pace of innovation nothing is too big to fail. Wells Fargo had over $86 billion in revenues in 2015 with a market cap of $254 billion, but Nokia in 2000 had a market cap of $300 billion with $28 billion in revenues.Today, Nokia is down to a market cap of $26 billion and a shell of its former self. In 2008, Nokia had 38% of the global mobile phone market and today it’s down to a couple percentage points of the global smartphone market. Disrupting the Global Financial System

4. Innovation Knocking on the Doors of Giants We believe there are a wealth of opportunities for startups and established tech companies to disrupt the financial sector. Here is a look at just 4 areas that are being challenged and changed today: digital payments, consumer finance, business financing, and cyber currency. Each of these areas are broad categories and can contain multiple vertical industries. Consumer finance contains wealth management, peer-to-peer lending, new credit scoring systems and many others. Unbundling the Financial Sector Digital Payments Consumer Finance Business Financing Cyber Currency TRADITIONAL FINANCIAL INSTITUTIONS • Commercial Banks • Private Banks • Credit Card Operators • Brokerages • Insurance Companies • Credit Rating Agencies

5. "I think two key tectonic shifts are happening due to the increased power of data analytics and also shifts in consumer behavior around asset ownership. This will create a whole new way to assess asset-backed risk/return in the financial markets, particularly when talking about specific financeable assets with --now-- clearer revenue streams and ROI attached to them...Think about how the world of energy and transportation could be financed via new Fintech instruments, for example ... The world is moving to a usage model rather an ownership model and Fintech will morph to serve that in much better ways. It is an exciting and much more efficient use of capital.” Sergio Monsalve, Partner at Norwest Venture Partners Norwest has invested in Lending Club, Shriram City, Motif, Yes Bank, IndusInd Bank, RBL Bank, ING Vysya Bank and others.

6. Unbundling the Financial Sector Largest Banks in the World by Assets 1.  Industrial & Comm Bank of China 2.  China Construction Bank 3.  Agricultural Bank of China 4.  HSBC Holdings (UK) 5.  Bank of China 6.  JP Morgan Chase 7.  BNP Paribas (France) 8.  Mitsubishi UFJ Financial Group 9.  Bank of America 10.  Credit Agricole Group (France) 11.  Deutsche Bank (Germany) 12.  Barclays PLC (UK) 13.  Citigroup 14.  Wells Fargo 15.  Japan Post Bank Largest Banks in the U.S. by Assets 1.  JP Morgan Chase 2.  Bank of America 3.  Wells Fargo 4.  Citigroup 5.  U.S. Bancorp *Federal Reserve Statistics $1.91 Trillion (2015) $1.63 Trillion $1.61 Trillion $1.29 Trillion $ 417 Billion $3.61 Trillion (2015) $2.93 Trillion $2.81 Trillion $2.67 Trillion $2.63 Trillion $2.44 Trillion $2.40 Trillion $2.32 Trillion $2.15 Trillion $1.91 Trillion $1.90 Trillion $1.88 Trillion $1.83 Trillion $1.79 Trillion $1.70 Trillion *Please note the accounting treatment affects the assets reported. For example, the U.S. uses US GAAP (as opposed to IFRS), which only reports the net derivative position in most cases, leading to U.S. banks having fewer derivative assets, than comparable non-U.S. banks. (Wikipedia)

7. Unbundling the Financial Sector Largest Banks in the World by Market Cap 1.  Wells Fargo 2.  Industrial & Comm Bank of China 3.  JP Morgan Chase 4.  China Construction Bank 5.  Agriculture Bank of China 6.  Bank of China 7.  Bank of America 8.  HSBC Holdings (UK) 9.  Citigroup 10.  Commonwealth Bank of Australia 11.  Westpac Banking Corp (AU) 12.  Royal Bank of Canada 13.  Toronto-Dominion Bank 14.  Lloyds Banking Group (UK) 15.  Banco Santander (Spain) Largest Banks in the U.S. by Market Cap 1.  Wells Fargo 2.  JP Morgan Chase 3.  Bank of America 4.  Citigroup 5.  U.S. Bancorp Number of Domestic Branches 1.  JP Morgan Chase 2.  Bank of America 3.  Wells Fargo 4.  Citigroup 5.  U.S. Bank $254.2 Billion (2015) $217.8 Billion $142.4 Billion $126.7 Billion $ 70.2 Billion $254.2 Billion (2015) $226.6 Billion $217.8 Billion $155.9 Billion $155.0 Billion $144.2 Billion $142.4 Billion $128.9 Billion $126.7 Billion $ 99.7 Billion $ 83.5 Billion $ 83.4 Billion $ 77.1 Billion $ 73.8 Billion $ 71.2 Billion 5,420 4,787 6,233 794 3,223

8. Unbundling the Financial Sector Largest U.S. Wealth Managers / AUM 1.  Bank of America Global Wealth 2.  Morgan Stanley Wealth 3.  JP Morgan 4.  Wells Fargo 5.  UBS Wealth Management 6.  Goldman Sachs 7.  BNY Mellon Wealth Management 8.  Fidelity (Wealth) 9.  Northern Trust 10.  Citigroup 11.  Credit Suisse 12.  Raymond James Financial 13.  Deutsche Asset & Wealth Mgmt 14.  RBC Wealth Management 15.  Bessemer Trust Online Wealth Managers / AUM 1.  Betterment 2.  Wealthfront 3.  Personal Capital *Assets Under Management (AUM) $3.0 Billion (2015) $2.6 Billion $2.0 Billion $1.12 Trillion (2014) $986.7 Billion $617.0 Billion $508.0 Billion $499.0 Billion $240.4 Billion $215.1 Billion $200.0 Billion $196.7 Billion $119.0 Billion $106.0 Billion $102.9 Billion $ 86.0 Billion $ 76.1 Billion $ 67.3 Billion

9. Unbundling the Financial Sector Largest Asset Management Firms / AUM 1.  Black Rock 2.  Vanguard Group 3.  State Street Global Advisors 4.  Fidelity 5.  Allianz Group (Germany) 6.  UBS Group (Switzerland) 7.  JP Morgan Asset Management 8.  BNY Mellon Investment Mgmt 9.  PIMCO 10.  Credit Agricile Group (France) 11.  Credit Suisse Group (Switzerland) 12.  AXA Group (France) 13.  Capital Group 14.  Deutsche Asset & Wealth Mgmt 15.  Prudential Financial * PIMCO operates as a separate and autonomous subsidiary of Allianz Largest U.S. Asset Management Firms 1.  Black Rock 2.  Vanguard Group 3.  State Street Global 4.  Fidelity 5.  JP Morgan Asset $4.50 Trillion (2015) $3.29 Trillion $2.26 Trillion $2.07 Trillion $1.78 Trillion $4.50 Trillion (2015) $3.29 Trillion $2.26 Trillion $2.07 Trillion $2.03 Trillion $1.97 Trillion (2014) $1.78 Trillion $1.63 Trillion $1.47 Trillion $1.53 Trillion $1.47 Trillion $1.38 Trillion (2014) $1.39 Trillion (2014) $1.22 Trillion $1.17 Trillion

10. Unbundling the Financial Sector Publicly Traded Private Equity Funds 1.  KKR 2.  Carlyle Group Market Cap: $10.3 Billion (5/16) Revenues: $1.0B (2015) Market Cap: $5.2 Billion (5/16) Revenues: $3.0B (2015) Publicly Traded Investment Banks 1.  Goldman Sachs 2.  Morgan Stanley Market Cap: $63.9 Billion (5/16) Revenues: $39.4B (2015) Market Cap: $49.9 Billion (5/16) Revenues: $37.9B (2015) Retail Brokerage Firms 1.  Charles Schwab 2.  E*Trade 3.  TD Ameritrade 4.  Edward Jones Market Cap: $36.6 Billion (5/16) Revenues: $6.5B (2015) Market Cap: $6.9 Billion (5/16) Revenues: $472 Million (2015) Market Cap: $15.3 Billion (5/16) Revenues: $3.2 B (2015) Market Cap: Private Company Revenues: $6.3B (2014)

11. Unbundling the Financial Sector Leading Credit Card Companies 1.  MasterCard 2.  Visa 3.  AMEX 4.  Discover Market Cap: $102 Billion (5/16) Revenues: $9.7B (2015) Market Cap: $184 Billion (5/16) Revenues: $13.9B (2015) Market Cap: $60.7 Billion (5/16) Revenues: $13.9B (2015) Market Cap: $22.4 Billion (5/16) Revenues: $10.0B (2015) 2013 2014 (millions of cards) 526 545 563 576 54 57 Source: CreditCards.com

12. Unbundling the Financial Sector 2013 2014 2013 2014 (millions of cards) 285 $1,100 $1,200 $560 $607 $637 $668 $123 $129 53 304 178 191 55 U.S. Credit Card Market Overview Source: CreditCards.com Source: CreditCards.com

13. Unbundling the Financial Sector U.S. Consumer & Credit Card Debt Average U.S. Household Debt $130,922 Total U.S. Consumer Debt $3.4 trillion Average Credit Card Debt $16,048 Total Credit Card Debt $762 billion *Federal Reserve *Consumer Finance Survey Global Household Debt % of Net Disposable Income for OECD Countries

14. Unbundling the Financial Sector Leading Public FinTech Companies 1.  Paypal 2.  Square 3.  Envestnet 4.  Lending Club 5.  On Deck Capital Market Cap: $47.6 Billion (5/16) Revenues: $9.2B (2015) Market Cap: $3.0 Billion (5/16) Revenues: $1.3B (2015) Market Cap: $1.3 Billion (5/16) Revenues: $420.9 Million (2015) Market Cap: $1.2 Billion (5/16) Revenues: $980M (2015) Market Cap: $302.8 Million (5/16) Revenues: $254.8M (2015) “Goldman Sachs estimates that when peer-to-peer (lending) comes of age, it could reduce proﬁts at America’s banks by $11 billion, or 7%.” The Economist, May 2015 "The incumbents risk becoming merely capital-providing utilities that operate in a highly regulated, less proﬁtable environment, a situation unlikely to be tolerated by shareholders.” Antony Jenkins, former CEO of Barclays “Jenkins, who was ousted as Barclays CEO in July, says a new wave of tech-savvy startups that can do things better, faster, and cheaper than the big banks will disrupt their traditional businesses like lending, payments, and wealth management.” Business Insider, Nov. 26th, 2015

15. GLOBAL TRANSACTION VALUE AND SHARE OF SEGMENTS 3.0% 8.3% 0.4% 0.4% 6.8% 2.6% 13.2% 65.3% 0.5% 2.7% 0.1% 0.1% 0.9% 1.2% 1.0% 93.6% Consumer Lending Platforms Automated Investment Service Factoring Platforms Crowdfounding Business Lending Platforms Online P2P Money Transfers Mobile Wallet Pos Payments Online Payments Consume rFinance Business Finance Digital Payments 2015 2020 11% 8% 81% 3% 1% 96% Consumer Finance Business Finance Digital Payments 2015 2020(E) Although the digital payment segment is currently dominating the fintech market, new fintech companies are expanding to business and consumer finance segments through P2P platform business models and process automation. Breakdown of Digital Transactions Source: Statista 2015

16. 1,592,478 1,927,522 2,355,939 2,888,140 3,525,513 4,227,750 5,032,996 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2014 2015 2016(E) 2017(E) 2018(E) 2019(E) 2020(E) MARKET SIZE BY TRANSACTION VOLUME (millions of USD) Country Transaction Volume United States $769,323.4 M China $441,017.1 M United Kingdom $168,521.7 M Japan $138,191.2 M Germany $121,017.9 M TRANSACTION VOLUME BY COUNTRY Market Size and Growth Source: Statista 2015

17. "What excites me most about what WorldCover is doing is that we can provide clear social impact through finance at a distance.What I mean by that is there are people in the United States and other developed markets holding trillions of dollars of capital and striving for great returns and--for a growing many--social impact. Meanwhile there are billions of people around the world who lack a financial safety net when disaster strikes. By applying technology and fundamentally rethinking what insurance should look like, WorldCover solves both problems. We allow capital to flow freely across borders and cultures from those who have it to those who need it most.” Christopher Sheenan, Co-founder & CEO of Worldcover WorldCover is a peer-to-peer lending platform protects farmers from natural disasters and gives investors diversified returns and direct social impact. WorldCover’s investors include Y Combinator and prominent angels in Silicon Valley.

18. Layers of Disruption in FinTech © SparkLabs Global Ventures︎ Attacking the Core Our team believes the initial activity and transaction volume will be from the first layers of disruption in fintech (i.e. banking tech, payments), but long-term and more game-changing innovations will occur in the next layers. Ultimately, this will lead to new startups and technologies changing the core of the finance sector: commercial banking and insurance (life, health, property).

19. Layers of Disruption in FinTech Banking Tech Analytics Data Management CRM Security Payments Online B2C Commerce Mobile Wallet POS P2P Money Transfer Payment Solutions Cyber Currency Blockchain Bitcoin Digital Wallets Cryptocurrency Exchange Business Finance P2P Business Lending Credit Lines for Business Crowdfunding Consumer Finance P2P Consumer Lending Robo Advisors Personal Finance Mgmt Mortgage Lending Credit Assessment Alternative Cores Alternative Health Insurance Alternative Car Insurance Alternative Property Insurance Digital Banks

20. 2.4 2.8 3.9 12.2 19.1 2.1 2.4 2.8 6.7 13.8 457 607 759 933 1162 298 397 484 587 653 0 200 400 600 800 1000 1200 1400 0 5 10 15 20 25 2011 2012 2013 2014 2015 Overall Investment VC-Backed Investment Overall Deals VC-Backed Deals •  Overall investment includes funding by angel investors, angel groups, private equity firms, •  mutual funds, hedge funds, VC, corporate, corporate VC investors. MAJOR INVESTMENT TRENDS CAGR for Global FinTech Investment Between 2011 and 2015, in terms of dollar amount, CAGR of overall investment was 68%, and CAGR of VC investment was 60.1%. 2015 FinTech Funding Doubled 2014 Total Globally, funding to VC-backed Companies in 2015 hit an all-time high of $13.8B, up 106% versus 2014’s total of $6.7B. Mega-rounds Spread Through Fintech Between 2011 and 2013, there were fewer than fifteen $50M+ rounds to venture- backed fintech companies in aggregate. In 2015 alone, the number of $50M+ fintech deals jumped past 60. Corporates Active in 1 of Every 4 Fintech Deals Corporates have participated in 25% or more of all fintech deals for 3 quarters straight, as corporates in financial services, telecom and technology become increasingly active. INVESTMENT DEALS & AMOUNT in USD Billions Investment Trends in FinTech

21. Investment Trends in FinTech

22. "As Larry Summers said at the Consensus Conference in early May, anyone who doesn't think blockchain technologies will have a significant impact on the major systems of the world is probably wrong. What's still unclear - aside from their use at the heart of Bitcoin, Ethereum, and every major digital currency – is precisely how and where. There are lots of distributed-database applications for which a traditional database will be more than suitable. But anywhere you're building a network that has to be resilient in the face of bad actors (intentional or not) and where you want to avoid granting just one company or government the ability to control the ecosystem, you're going to want a blockchain.” Brian Behlendorf, Executive Director of the Hyperledger Project The Hyperledger Project is a collaborative effort created to advance blockchain technology for a cross- industry open standard for distributed ledgers that can transform the way business transactions are conducted globally.

23. Investment Trends in FinTech Bitcoin & Blockchain Bounce Back in Q1 2016 CB Insight’s recent research showed that investment into bitcoin and blockchain bounced back in Q1 2016 after a downward trend since Q2 2015. Q1 2016 had a 385% increase in funding. These include Digital Asset Holdings’ $60M Series A, bitFlyer’s $26M Series C and Blockstream’s $55M Series A.

24. Investment Trends in FinTech Financial Services and Strategic Investors in Blockchain and Bitcoin Startups CB Insight’s research revealed that all of 2015's largest blockchain and bitcoin investments involved strategic and corporate investors, such as Google, Cisco, Goldman Sachs,Visa, BBVA, and AXA.

25. U.S.’s Tremors of Disruption © SparkLabs Global Ventures︎ Most Mature The U.S. market stands as the most mature and active in startup activity and investments. The ﬁnance sector in the U.S. is being challenged on multiple fronts.

26. First Wave of New Lenders Market Potential and Profit Loss The leading peer-to-peer consumer lender, Lending Club, has arranged over $9 billion since it launched in 2007.As a comparison, Bank of America’s consumer loan portfolio was $489 billion in 2014 (breakdown above). As startups attack the revenue streams of banks, they will slowly erode the proﬁtability of traditional institutions in each of these areas. Already half of all commercial (retail) bank customers are unproﬁtable. Bank of America’s Consumer Loan Portfolio

27. "Financial wellness is a new secular trend and financial well-being will become the most important operating metric for next generation financial services. Do your ﬁnancial products help or hurt your customers? Our science and aligned products and services are designed to help people improve their ﬁnancial well-being and position us to lead in building trust-based and long-term relationships with consumers.” Scott Saunders, Co-founder & CEO of Payoff Payoff’s investors include Mohamed El-Erian, Anthemis Group, Great Oaks Venture Capital, and SparkLabs Global Ventures.

28. U.S.’s Tremors of Disruption Company Details Funding Investors SoFi[San Francisco, 2011]: SoFi is a marketplace that connects alumni borrowers and investors for refinancing private and federal student loans. Investors get market returns, while borrowers get lower interest rates. Benefits like events, career advising, seed funding and professional mentorship deliver value beyond a traditional bank. Also offers mortgages, mortgage refinancing, and personal loans. Sofi has as over $7B in loans issued and more than 12k members. $1.5B Peter Thiel, Renren, Baseline Ventures, DCM, Institutional Venture Partners, Softbank, Baseline Ventures Avant[Chicago, 2012]: Avant is an online personal lending platform. It screens applications borrowers on the basis of FICO scores.The amount of principal lent is arrived at by taking into account income levels, credit history scores, and other criteria.Avant operates in 46 U.S. states and in the United Kingdom.Avant Institutional Marketplace enables qualified institutional investors the ability to purchase loans originated through the Avant technology platform.The company has raised more than $1B in debt.The platform has lent 3 billion dollars between 450,000 borrowers. $655M August Capital,Jefferies, Draper Fisher Jurvetson (DFJ), RRE Ventures, Kohlberg Kravis Roberts, Tiger Global,JPMorgan Chase, CREDIT SUISSE, DFJ Growth, General Atlantic Affirm[San Francisco, 2012]: Affirm is a millennial focused financing platform offering Point of Sale loans to online shoppers. Its proprietary underwriting model processes borrower's data, sourced from merchant's website via an API, along with data points from alternative sources, like social networking websites, to arrive at a credit decision.The company monetizes from the interest charged on the loans and the processing fee charged from merchants. It also offers a single usage credit card which can be used at non-partner merchants' websites. $420M Spark Capital,Andreessen Horowitz, Lightspeed Venture Partners, Khosla Ventures, Founders Fund CONSUMER FINANCE: Consumer Lending Startups

29. U.S.’s Tremors of Disruption Company Details Funding Investors LendUp[San Francisco, 2012]: LendUp is a direct lender and has created a product that allows small-dollar loans as an opportunity for consumers to build credit and move up the financial ladder. Consumers who have poor or no credit can apply for and receive small-dollar, short-term loans. LendUp uses big data to do instant risk analysis and evaluate credit worthiness. Incubated at Y Combinator in Winter 2012. In April 2014 it launched its API using which other companies and organizations can integrate LendUp’s loan-processing tools into their own product, or even build their own financial and loan service with a white-label option. In 2015, the L Card, a credit card business, launched in beta. $164M KPCB,Andreessen Horowitz, Google Ventures,Thomvest Ventures, Kapor Capital, Data Collective, SVAngel CommonBond[Brooklyn, 2011]: CommonBond is a B2C lending marketplace that allows students to finance their education or refinance their student loan debt.The principal amount available for borrowing extends up to $220,000, with fixed and flexible interest rates available for repayments.The portal charges no fee for prepayment of the amount. $147M Macquarie Group, Barclays,August, Tribeca Venture Partners, Social Capital Earnest[San Francisco, 2013]: Earnest is a lending platform for students that provides an opportunity to lower education debt. The platform offers loans that have flexible terms such as unemployment protection, an option to switch between fixed and variable rates, and deferring payments to a later date in the investment term. The portal does not charge any origination or prepayment fees, and claims to earn its revenue from the interest charged. It also offers personal loans for various reasons like career development, vacations, wedding rings etc. $107M Maveron,Andreessen Horowitz, Collaborative Fund, First Round Capital, Battery Ventures,Adams Street Partners, New York Life Insurance Company CONSUMER FINANCE: Consumer Lending Startups

30. U.S.’s Tremors of Disruption Company Details Funding Investors Betterment [New York City, 2008]: Betterment is a goal-based online investment company that allows users to select how much they want invested in stock and Bonds ETFs. No minimum deposit to open an account.The management fees charged range from 0.15% to 0.35% based on the account balance.The company also offers a B2B2C platform for RIAs and a 401(K) investment platform. $205M Bessemer,Anthemis Group, Francisco Partners, Citi Ventures, Kinnevik, anthemis Wealthfront[Palo Alto, 2008]: Wealthfront is an automated investment management service that uses modern portfolio the ory to deliver long-term returns. Low cost ETFs are used to represent each asset class. Stock allocations include US, foreign and emerging markets. Likewise, bond allocations include municipal, corporate and emerging markets.Alternative allocations in real estate and natural resources. $129M Index Ventures, Ribbit Capital, Greylock Partners, DAG Ventures, Social Capital Motif Investing [San Mateo, 2010]: Motif is an online investment platform that enables users to create a basket (called a motif) of stocks and ETFs. Once built, an investor can buy a motif of up to 30 stocks and ETFs for $9.95. Investors can create their own motifs, invest in motifs built by Motif Investing, or invest in motifs built by other investors on the platform. Customers can start with $250 investment.Also provides a free service called Horizon motifs which are motifs comprised of low-cost ETFs. $126M Foundation Capital, Norwest, Ignition Partners, Goldman Sachs, Balderton, JP Morgan Chase, Renren Personal Capital [Redwood City, 2009]: Personal Capital offers two distinct services.The online and mobile portfolio tracking application downloads user's holdings in different accounts, aggregates and analyzes them into tables and charts. Helps user view all accounts in one place and is a free service. Second service offers to manage users' investment account. Users get a live person as advisor. $104M IVP,Venrock, Crosslink Capital, BlackRock, USAA, BBVAVentures CONSUMER FINANCE: Robo Advisor Startups

31. U.S.’s Tremors of Disruption Company Details Funding Investors Biz2Credit[New York City, 2007]: Biz2Credit is a multi solution credit source for small businesses.The platform offers credit products such as SBA loans, traditional bank loans, business lines of credit, equipment financing, business acquisition loans, commercial real estate loans, refinancing and merchant cash advances.The amount borrowed from the platform can rage from $5,000 to $5M. Biz2Credit charges borrowers an underwriting fee once a loan has been successfully granted. Biz2Credit has arranged for $1.2 billion worth of credit for over 100,000 companies. $250M Direct Lending Investments Kabbage[Atlanta, 2009]: Kabbage is a provider of working capital loans for small businesses. It leverages data generated through business activity such as seller channels, social media, shipping data, and other sources to understand performance and delivers financing options for small businesses.The loans are made by Celtic Bank. In addition to this, Kabbage also provides white label platforms to companies wanting to start their own lending platforms. In 2015, it launched a white-label offering where third parties will power loan services using Kabbage’s technology. $240M Guggenheim Partners, Mohr Davidow Ventures, BlueRun Ventures,Thomvest Ventures, SoftBank, UPS, Santander InnoVentures,Western Tech, SVAngel, TPG Capital OnDeck[New York City, 2007]: OnDeck is a technology powered lending company for SMBs. It leverages electronic information including online banking and merchant processing data to identify the creditworthiness of small businesses. Repayments are made through fixed daily deductions from the business bank account and the loans are usually secured by liens on business assets and personal guarantee. Loans range from $5k to $250k.To date, OnDeck had funded more than $4 billion in loans since its inception. $198M IVP, RRE Ventures, Google Ventures, First Round Capital,Tiger Global, Khosla Ventures BUSINESS FINANCE: Commercial Loan Startups

32. U.S.’s Tremors of Disruption Company Details Funding Investors Behalf[New York City, 2011]: Behalf is an alternate lending platform that offers a line of credit for purchases to businesses.The platform does not disburse any credit to the borrower, it instead handles the purchase requirements of the borrowers by dealing with their vendors directly.This principal of operations mitigates any mismanagement of funds by the borrower. $129M Spark Capital, Sequoia Capital, Victory Park Capital, Maverick Ventures Israel LendingHome[San Francisco, 2013]: Lending Home is an online mortgage marketplace for real estate loan borrowers, investors, and brokers. It allows both institutional investors and accredited retail investors to invest on its platform. Institutional investors including hedge funds, private equity, mortgage desks, family offices, university endowments can start investing with a minimum investment amount of US$10,000 and retail investors from US$1,000. Lending Home is a direct lender and sells whole loans to institutional or retail investors. $109M Foundation Capital, Ribbit Capital, Renren, Cowboy Ventures, First Round Capital Super G Funding [Newport Beach, 2008]: Super G Funding is a national provider of business financing solutions with loans ranging in size from $100,000 – $5,000,000. Super G makes loans up to five times the value of an ISO’s revenue stream, with a maximum value of $2 million. Revenues streams include core processing revenues and recurring fee revenues from terminal leasing, prepaid cards, and gateway and check-guarantee services. ISOs can take loans for 12, 24, or 36 months on which they are typically charged an interest rate between 17% and 19%. $100M Discovery Capital CAN Capital [New York City, 1998]: CANCapital is a credit source for small businesses, the portal offers term loans and merchant cash advances to borrowers.The business loans can range from $2,500 to $150,000 for a term not exceeding 24 months.The merchant cash advances are future credit card sales bought by the platform at a discount, and are repaid in as a percentage of sales weekly.The company has been in operation for seventeen years and funded over 156,000 small businesses. $93M Accel Partners, Meritech Capital Partners, Ribbit Capital, Wells Fargo Bank BUSINESS FINANCE: Commercial Loan Startups

33. U.S.’s Tremors of Disruption Company Details Funding Investors Stripe[San Francisco, 2010]: Stripe is an online and mobile payment transaction processor. It provides APIs to help businesses accept various modes of payments from the latter's customers.The main products offered by Stripe are Stripe Checkout – an online and mobile payment gateway API, Stripe Connect – a white label payment API aimed at resellers and third party payment gateways, developer APIs – available in multiple languages. Its proprietary product stripe.js, is one of the earliest to allow merchants and businesses to accept payments on their sites without meeting the necessary PCI compliance requirements, as the card details are securely stored in Stripe’s servers instead of merchants’. $300M Founders Fund, Khosla Ventures, Sequoia Capital,Allen & Company,AMEX,VISA, KPCB,Andreessen Horowitz, General Catalyst, Redpoint,Y Combinator, Thrive Capital Coinbase[San Francisco, 2012]: Coinbase is a bitcoin wallet and platform where merchants and consumers can transact in bitcoin. Coinbase offers an exchange for Bitcoins, payment gateway for online merchants to accept Bitcoins and also provides APIs for developers.As of March 2016, the company claims to have served 3.4M customers from 32 countries and exchanged approximately $3.5B. It offers a mobile wallet and also provides Insurance protection for coins stored on their servers. $106M Andreessen Horowitz, Union Square Ventures, Ribbit Capital,Y Combinator, IDG Ventures, SVAngel, New York Stock Exchange, DFJ Growth, USAA, BBVA, DoCoMo,Valor Capital Vanco Payment Solutions [Atlanta, 2007]: Vanco Payment Solutions, earlier known as Veracity Payment Solutions, offers specialized payment solutions across multiple industries, including faith-based organizations, nonproﬁts, and professional services companies.The services offered include (a) payment gateway services - including credit/debit card processing, issue of prepaid gift cards, mPOS, web and text based donations, payment hardware services including POS terminals and card readers. $80M Great Hill Partners PAYMENTS: Payment Solution Startups

34. U.S.’s Tremors of Disruption Company Details Funding Investors WePay[Palo Alto, 2008]: WePay has built its API specifically for platform businesses like marketplaces, crowdfunding sites and small business software.Through its proprietary Veda social risk engine,WePay gives platforms a flexible payments API that provides a great user experience while still being able to take on all their fraud risk and compliance burdens. WePay has processed transactions for more than 200,000 customers and 280+ partners. $73M Y Combinator,August Capital, Highland Capital Braintree[Chicago, 2007]: Braintree provides developers a full-stack platform to accept payments on their website and app. Provides hosted and API gateways to businesses.Also offers marketplace payment solutions, recurring billing and fraud protection services. Processes more than $10 billion annually (with more than $2 billion on mobile) for thousands of online and mobile commerce innovators including Airbnb, Fab, LivingSocial, OpenTable and Uber. Acquired by eBay's PayPal for $800M in Sep 2013. $69M Accel Partners, New Enterprise Associates, QED Investors, RRE Ventures, Greycroft Partners BlueSnap[Boston, 2001]: Provides Hosted,API and hybrid gateways, business analytics and intelligence, recurring billing solutions.Works on intelligent routing to process payments faster, owing to its tie ups with multiple banks. It provides PCI level 1 security and compliance to its customers. In 2011, Boston-based private equity firm Great Hill Partners bought the company for $115 million. $68M Great Hill Partners, Parthenon Capital 2Checkout[Columbus, 2000]: 2Checkout is a PCI level 1 compliant payment gateway. Offers Hosted,API and shopping cart integrated gateways, with recurring billing and fraud prevention solutions (card data storage and three level encryption). Also provides mobile gateway solutions. Provides Sandbox for developers. $60M Trident Capital, Chicago Growth Partners,Trinity Capital Investment PAYMENTS: Payment Solution Startups

35. ” The past few years focused on platforms as products. Many ﬁnancial products are built as walled gardens with revenue coming from access to or use of these products. But now high levels of friction and costs associated with connecting disparate financial systems have become a major obstacle, not just for those living in the developing world, but even for IT departments of global banks. Logically, we will see a shift towards interoperability and we will see more companies that offer interoperability services as their core product. Once interoperability becomes commonplace, revenue models built on the walled garden concept will face new challenges. ” Joyce Kim, Executive Director & Co-founder of Stellar.org

36. U.S.’s Tremors of Disruption Company Details Funding Investors Blockstream[San Francisco, 2014]: Blockstream works on the sidechains which are mutually interoperable blockchains and also work with Bitcoin, avoiding liquidity shortages, market fluctuations, fragmentation, security breaches and frauds. Blockstream develops new crypto currencies, open assets and smart contracts.Their solutions cater to developers, asset issuers and users providing them with a neutral and cryptographically-assured computing technology for all their financial needs. $76M Khosla Ventures,, Innovation Endeavors, Mosaic Ventures, Ribbit Capital,AME Cloud Ventures, Horizons Ventures, AXA Strategic Ventures Digital Asset Holdings [New York City, 2014]: Digital Asset builds distributed, encrypted STP tools for capital markets and financial institutions. It develops technology that helps efficiency, transparency, compliance and settlement speed using cryptographic, distributed ledgers.Their offerings are 1) Open source distributed ledge infrastructure to create ledgers 2) Digital asset platform that interacts with ledgers and enable applications embedded with business logics in the form of low-level services 3) Business applications that are asset-specific plugins. $60M ABN AMRO Bank,Accenture, BNP Paribas, Citigroup, CMEGroup, Deutsche,JP Morgan, Santander InnoVentures, PNC Bank, Goldman Sachs, IBM Chain[San Francisco, 2014]: Chain partners with leading organizations to build blockchain networks and apps.Their solutions enable institutions to design, deploy, and operate blockchain networks that can power any type of asset in any market . $43.7M Khosla Ventures,Thrive Capital, RRE Ventures, Capital One, NASDAQ, Orange,VISA, SVAngel CYBER CURRENCY Startups

37. U.S.’s Tremors of Disruption Company Details Funding Investors Moven[New York City, 2011]: Moven is an alternative to traditional bank deposit. Provides mobile banking service where users have access to real-time updates and spending alerts, spending analysis across all their bank cards and credit cards, the ability to send money to friends from the app via Facebook, email or their mobile number. Its accounts and associated MasterCard debit card are backed by CBW Bank, an FDIC member based in Kansas.They have grown to 5,000 registered users and over 100,000 have signed up for invites. Managed over $300 million in customer spending. $24M Anthemis Group, Standard Bank, Atlas Asset Mgt. Simple[Portland, 2009]: Consumer banking startup with a web/mobile interface that provides users with access to data around their ﬁnancial history, as well as tracking of expenditures and savings goals, with automated purchase data collected when its customers use their Simple Visa debit card. Simple is an intermediary between users and FDIC-insured institutions (Bancorp).Acquired by BBVA in February 2014, and will continue to operate separately, in parallel with BBVA's existing U.S. banking operations. $15M SVAngel,Anthemis Group, First Round Capital, Thrive Capital, Lerer Ventures, 500 Startups, Shasta Ventures Chime[San Francisco, 2013]: Chime is a prepaid card and mobile banking account.The chime visa card is issued by Bancorp.The card can be used everywhere VISA card are used and comes with no minimums, overdraft fees or surprises.The account and related spending can be monitored with an associated mobile app. $11M Forerunner Ventures, Crosslink Capital, Homebrew ALTERNATIVE CORES: Digital Bank Startups

38. Europe’s Tremors of Disruption © SparkLabs Global Ventures︎

39. Europe’s Tremors of Disruption

40. Europe’s Tremors of Disruption

41. ”We are entering an era where FinTech firms grow up. We are particularly excited by firms creating their own infrastructure, such as through banking licenses, and through this deeply integrating into the actual value creation of traditional banks. This goes far beyond the first wave of user experience driven startups in this field.” Christian Miele, Vice President at e.ventures & former SVP at Kreditech e.ventures has invested in numerous fintech companies, such as Acorns, Azimo, Bankfacil, Friendsurance, Nibo, Tandem, and Yeahka.

42. Europe’s Tremors of Disruption Company Details Funding Investors WorldRemit [London, 2010]: WorldRemit is a dedicated online remittances platform. Lets consumers make transfers from any computer or phone, and receive that money either straight into bank accounts, or mobile wallets or in the form of mobile airtime.The service offers customers a wide range of pay-out options in receive countries including instant cash pickup, transfers to mobile wallets, bank deposits and international airtime top-up. $192M Accel Partners,Technology Crossover Ventures, SVB Financial Group Ebury[London, 2009]: Ebury is a fintech company designed to power organisations to trade and transact internationally. Using Ebury’s integrated financial services and technology, organizations can make and receive payments in foreign currencies, enjoy better exchange rates, use emerging-market currencies, hedge currency risk, benefit from liquidity, and finance transactions in more than 120 currencies. Its white-label products are offered via brokers and accountants. Has offices in London, Madrid, Malaga, New York and Amsterdam. Clients include more than 3,000 organizations. $118M 83NorthVC,Vitruvian Partners TransferWise[London, 2011]: TransferWise is a peer-to-peer and business behalf money transfer service. Charges 0.5% as money transmission commission and money is converted at the interbank rate. Supports 17 currencies in 39 countries.They have transferred over $4.5B from its start as of Jan 2015.The company holds bank accounts in all operating countries and works on a currency swapping model. $90M Seedcamp, Index Ventures, Kima Ventures, SVAngel,Valar, Andreessen Horowitz PAYMENTS: Money Transfer Startups

43. Europe’s Tremors of Disruption Company Details Funding Investors Borro [London, 2008]: Borro is an online asset backed lending platform. It offers three types of loans to the consumer including Sale advance loans (advance for up to 70% of the estimated sale price), Bridge loans and term loans. For security it accepts a range of luxury assets including jewellery, luxury items, ﬁne art, precious metals, luxury handbags and wines.They don't review borrower's ﬁn ancials and no information goes to any credit bureaus. Over 75% of the loans are completed within 24 hours from valuation. Borro has originated $250M+ since 2011 and was ranked 8th in KPMG’s 50 Best Fintech innovators globally in 2014. $177M Sequoia Capital, General Atlantic, DST Global, QED Investors,Atomico, Institutional Venture Partners (IVP) Kreditech Holding [Hamburg, 2012]: Kreditech is a German online lender which offers loans to individuals based on t heir creditworthiness which is analyzed using their online data instead of using traditional credit rating information.The creditworthi ness of a user is determined in less than a minute based on up to 8,000 data points and the loan is directly issued. Kreditech current ly offers its services in Poland, Spain, Russia, the Czech Republic, and Mexico. All national platforms are operated by the international team, which currently consists of over 75 employees from 18 countries, from its headquarters in Hamburg. $150M Point Nine Capital, Blumberg Capital, Amadeus Capital Partners,J.C. Flowers, IFC Auxmoney[Dusseldorf, 2007]: Auxmoney is an online lending platform facilitating P2P loans. It allows private consumers to borrow from private investors for personal loans between €1k and €20k. $84M Foundation Capital, Partech Ventures, Index Ventures, Union Square Ventures CONSUMER FINANCE: Consumer Lending Startups

44. Europe’s Tremors of Disruption Company Details Funding Investors Zopa[London, 2005]: Zopa is a P2P money lending service that allows lenders and borrowers to deal directly with one another, cutting out the banks who act as middlemen. Zopa takes on such responsibilities as distributing money between parties, completing the legal paperwork, performing borrower identity/credit checks, and employing a collections agency that chases missed payments for the lender. Zopa also mitigates risk for lenders by enforcing monthly direct debit repayment, making borrowers sign a legal contract, and allowing lenders to lend small chunks of money to individual borrowers. The company itself makes money by charging a fixed fee for borrowers and 1% annual fee for lenders. Zopa has so far lent more than $1B. $58M Benchmark, Bessemer, Wellington Partners, Balderton Capital Prêt d’Union [Issy-les-Moulineaux, 2009]: PRET d’UNION S.A. is an online lending platform for P2P lending.The company allows individuals and organizations to act as lenders and individuals as borrowers. It offers five classes of return-based loans having tenor between 2 to 5 years and returns between 4% and 10%. It is certified as a “credit institution and investment service provider” by the French Prudential Supervisory Authority. $52M Kima Ventures, Schibsted Growth, Crédit Mutuel Arkéa, Eurazeo RateSetter[London, 2010]: RateSetter is a peer-to-peer (P2P) lending exchange, allowing people to lend and borrow money directly with each other, setting their own interest rates and terms. For borrowers there are no penalties for early repayment of a loan. Savers can invest as little as £100 and borrowers can get loans of up to £25,000. RateSetter also provides commercial loans that start at a principal upward of £25,000. $38M Woodford Investment,Artemis Investment CONSUMER FINANCE: Consumer Lending Startups

45. Europe’s Tremors of Disruption Company Details Funding Investors Funding Circle [London, 2010]: Funding Circle is an online marketplace where people can directly lend to small businesses. People lend small amounts to multiple creditworthy businesses to spread their risk. In turn, those businesses borrow from a multitude of people through an auction mechanism to get a lower interest rate. Lenders are able to loan specifically to businesses in their community or businesses that meet certain criteria, such as being environmental friendly. Over 33k investors who have lent to businesses of January 2016, Funding Circle has facilitated over $1.4 billion in loans to small and medium sized firms. $273M Index Ventures, Union Square Ventures,Accel, Ribbit Capital, DST Global, Baillie Gifford, Temasek Orange Money /dba EZBOB [London, 2011]: ezbob provides financing to businesses for up to £120,000 and a loan tenure of up to 24 months. Once the application is approved, the money is transferred to borrower's account. ezbob is the trading name of Orange Money and it acquired Everline, an online business loan provider in UK, in January 2015. Everline and ezbob have collectively provided over 6,000 business loans and lent over £70M to small businesses since 2012. $82M Angel CoFund, Phenomen Ventures, Oaktree Capital Management, Leumi Partners LendInvest[London, 2013]: LendInvest is an investment platform for property mortgage loans. LendInvest provides an online platform which circumvents the banks - allowing investors to lend directly to borrowers. LendInvest is providing investors with superior risk adjusted returns.All LendInvest loans are secured by a registered charge against residential or commercial property in the United Kingdom. $58M Kunlun,Atomico SpotCap[Berlin, 2013]: SpotCap is an alternate lending platform that offers credit line to businesses with a flexible repayment option.The credit line is open and used at the discretion of the approved businesses, businesses can withdraw as often as once a day. The repayment alternatives include a six month period over which the draw down is amortized. Repayments lead to a replenishment of the credit line. $50M KREOS CAPITAL,Access Industries, HV Holtzbrinck Ventures, Rocket Internet BUSINESS FINANCE: Commercial Loan Startups

46. Europe’s Tremors of Disruption Company Details Funding Investors Klarna[Stockholm, 2005]: Klarna is a provider of payment solutions for e-commerce stores. It allows buyers to pay for ordered goods after receiving them, thus providing them with an after delivery payment solution. It also offers customers with an option on the payment gateway of the online store to pay by Klarna and choose to pay by instalments, or pay the amount after a certain period of time.At the same time, Klarna assumes all credit and fraud risk for e-stores so that sellers can rest assured that they will always receive their money. Klarna’s business model relies on only charging for approved purchases, which means that Klarna always work towards increasing stores’ sales. $282M Oresund Investments, Sequoia, General Atlantic, DST Global, QED Investors,Atomico, Institutional Venture Partners Adyen[Amsterdam, 2006]: Adyen is a global provider of international and omni-channel payment solutions.Adyen holds full acquiring licenses for Visa, MasterCard,American Express, Diners, Discover and Union Pay enabling its platform to process payments from any sales channels including online, mobile, and point-of-sale (Shuttle).The Platform is highly scalable and can be completely customized to meet any merchant requirement.Adyen processes 251 local payment methods and 187 transaction currencies used on six continents. Processed $25 billion in payments transactions in 2014, and provides advanced payment solutions to more than 3,500 customers including Mango,TomTom, PhotoBox, SoundCloud and Vodafone. $266M General Atlantic, Index Ventures, Felicis Ventures,Temasek, Iconiq Capital Valldata[Melksham, 2014]: Valldata specializes in payment processing for the non-proﬁt sector.Among its payment processing solutions include level 1 PCI-DSS merchant acquiring solutions under VISA, online solutions including donation and related campaigns, event registration, membership & merchandising. $10M Living Bridge PAYMENTS: Payment Solution Startups

47. Europe’s Tremors of Disruption Company Details Funding Investors Clear2Pay[Brussels, 2001]: Clear2Pay is a Belgium based company providing payment solutions to ﬁnancial institutions. It provides a variety of products and services like Bank Payment Hub (an umbrella payment solutions), Open Payment Framework (common reusable services like choreographed business payment processes) and other payment solutions like international payments, domestic payments and electronic banking. It also provides certain value-added-services like dispute management, remittances, maintenance of tax payment formats and bill presentment and payments. In September 2014 Clear2Pay was acquired by FIS, a U.S. based provider of banking and payment technology solutions, for $492M. $127M Aquiline Capital Partners, Intel Capital, Big Bang Ventures, Quest for Growth, Iris Capital ClickandBuy[London, 2000]: ClickandBuy is an online payment service provider with strong presence in Europe. With around 10 million customers dealing in over 120 currencies across 193 countries, it is the second largest Internet payment brand behind Paypal. In March 2010 ClickandBuy was acquired by Deutsche Telekom AG from Intel Capital for €80M. $30M 3i Group,T-Venture Paymill[Munich, 2012]: Paymill is a payment solution which enables online businesses and services to accept payments on their websites within a very short time. Provides a developer friendly API. Has expanded to 40 countries within Europe. Direct debit was added in November 2012 as an additional payment method. Mobile SDKs for Android and iOS are available to easily accept in-app payments. Paymill provides processing of up to 100 currencies and merchants can choose from 23 payout currencies. $18M Blumberg Capital, HV Holtzbrinck Ventures, Sunstone Capital, Rocket Internet PAYMENTS: Payment Gateway Startups

48. Europe’s Tremors of Disruption Company Details Funding Investors iZettle[Stockholm, 2010]: The iZettle app and card readers allow individuals and small businesses to accept card payments on their iOS or Android smartphone or tablet.The app supports both chip cards and magnetic stripe cards. iZettle card readers can either plug into the audio jack or connect wirelessly via Bluetooth. Provides services in Sweden, Finland, Denmark, Norway, the UK, Germany, Spain, Mexico and Brazil. $173M Index Ventures, Greylock Partners, Northzone, Creandum, Intel Capital, Dawn Capital, Santander InnoVentures,American Express Payleven[Berlin, 2012]: Payleven offers a mobile app and bluetooth-enabled wireless card reader that connects with iOS or Android smartphones or tablets to accept credit and debit card payments. Merchants can take payments with card swipe or manually entering details.The device connects to the phone's internet connection to complete the transaction over Payleven's servers. Operates in 10 European countries at present. $51M New Enterprise Associates, HV Holtzbrinck Ventures, Seventure Partners, Rocket Internet SumUp[London, 2012]: SumUp offers a mPoS suite to merchants which includes an app and a card reader for payment acceptance.The merchant enters the order details in the app which are transferred to the the card reader.The consumer enters the PIN for the payment cards and completes the transaction. SumUp has expanded into 14 countries, including the UK, Germany, Russia and Brazil. $44M Tengelmann Ventures, Shortcut Ventures, BBVAVentures, Groupon,American Express Miura Systems [ , 2008]: Miura is a UK based provider of mPoS Chip & Pin hardware solutions. Its products integrate with mobile PoS softwares via app or with conventional counter-top PoS hardware systems. In June 2015, it collaborated with Apriva, a provider of wireless transaction products, to provide EMV and NFC payment capabilities it its mPoS card readers. $16M Draper Esprit PAYMENTS: Mobile POS Startups

49. Europe’s Tremors of Disruption Company Details Funding Investors Atom Bank [London, 2014]: Atom is a digital only bank that is expected to start in the United Kingdom.Atom is aiming to provide a full fledged service range for consumer and business banking facilities.The bank shall have no physical branch and is available only through a digital presence. T hey got a banking licence in June 2015 and Spanish bank BBVA has acquired a 29.5% stake in November 2015 for 45M Pounds. $163M Anthemis Group, Polar Capital, Woodford Investment, British Engines,Toscafund, BBVA , Marathon Asset Management Tandem [London, 2013]: Tandem is a digital bank awaiting to get a regulatory license and begin its operations by the end of 2015 in UK. It has been started by Azimo founder and investor Ricky Knox alongwith Matt Cooper, Ex-director, Capitalone to cater to the large UK market of mobile-first banks.Tandem, which claims to offer consumer products including current accounts and mortgages, is understood to have raised nearly £100m in capital, backed by a group of 10 institutional investors. $154M Route 66 Ventures, e.ventures, Omidyar Starling Bank [London, 2014]: Starling Bank is aiming to be a digital bank which will offer current accounts to users along with an app and card services for payments. Starling is the trading name of Possible FS Limited, the company is currently applying to Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) for a banking licence. $70M Harald McPike Mondo Bank [London, 2015]: Mondo is the trading name of Focus FS Ltd,A UK registered Company applying to the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) for authorisation to become a bank. Its described as the full-stack mobile-first bank aimed at providing a better user experience in comparison to traditional banks. $11M Passion Capital Cryptaura [London, 2015]: Cryptaura is an early-stage, pre-licence new generation bank that supports blockchain technology. It has applied to the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) for a banking license. It is in stealth mode . N/A unknown PAYMENTS: Digital Bank Startups

50. Europe’s Tremors of Disruption Company Details Funding Investors Property Partner [London, 2014]: Property Partner is an equity crowdfunding platform for investments in real estate sector.The platform lists properties that investors can pledge money towards. Upon the successful funding of a property, Property Parnter establishes a Special Purpose Vehicle (SPV).The SPV purchases a stake in the property, the investors in turn receive shares of the SPV.The retail investors hold a share in a property and earn annual income until an eventual exit which might lead to capital gains. As of March 2016 £24M has been invested in 166 properties through its platform. $32M Octopus, Seedcamp, Index Ventures, Dawn, Silicon Valley Bank, Octopus Ventures Crowdcube[Exeter, 2010]: Crowdcube is a equity and debt crowdfunding platform that enables entrepreneurs and companies looking to raise crowdfunding create a pitch explaining their business. Crowdfunders can then invest in return for ownership or ﬁxed interest rates on bonds.The campaign creators have 60 days to reach their target funding goal or all funds are returned back to the investors.The platform has more than 200,000 registered users. Crowdcube says its platform has been used to raise more than £141 million for more than 367 start-up, early stage and growth businesses. $20M Balderton Capital, Balderton, Draper Esprit BUSINESS FINANCE: Crowd Funding Startups

51. ”What I find most exciting about financial services is the size of the potential opportunity and how we are only in the very early stages of disruption.Within each segment of the market, whether it's marketplace lending, payments, wealth management, or currency transfer, there is room for multiple $B companies. What's particularly exciting about being based in London is the heritage of financial services in the city, and the strong pool of talent from both finance and technology - we really believe in teams that combine both sides of 'fintech' and think those teams will build many global leaders out of London in years to come.” Hiro Tamura, Partner at Atomico Atomico has invested in fintech companies such as Klarna and LendInvest.

53. China’s Tremors of Disruption

54. China’s Tremors of Disruption •  Payments comprises of mPoS, PoS, wallets, payment gateways, and processors. These startups have raised $566.5M from 2014 - 2016 (YTD) in 36 rounds of funding •  Commercial lending platforms comprises of B2C Marketplace, P2P platforms, working capital and term loans platform. These startups raised $857M from 2014 - 2016 (YTD) in 66 rounds of funding •  Consumer lending platforms comprises of B2C Marketplace, P2P platforms, and purchase finance. These startups have raised $4.1B from 2014 - 2016 (YTD) in 86 round of funding •  Insurance tech comprises of online insurers and distribution platforms. They have raised $1.14B from 2014 - 2016 (YTD) in 26 rounds of funding Breakdown of Venture Capital Investments

55. China’s Tremors of Disruption Company Details Funding Investors Lufax[Shanghai, 2011]: Lufax was launched in 2012 and has arranged more than 200,000 peer-to-peer loans worth a total of $2.5 billion . It is currently one of the largest peer-to-peer lenders in China, focusing on consumer debt of around $10,000. Lufax collects fees of about 4% from borrowers and the loans typically yield about 6-8%. In contrast to most peer-to-peer lenders Lufax also operates about 100 stores across 80 cities, where borrowers can arrange loans. It also doesn’t make automated credit decisions but interviews ﬁrst time borrowers over the phone.As of Dec 2015, it has registered user base of 18 million with 3.6 million active users. Its services cover over 300 Chinese cities. $1.7B CDH Investments, Bank of China, China Minsheng Banking, Guotai Junan Securities, BlackPine Private Equity Jiedaibao[Beijing, 2015]: Jiedaibao has started lending and borrowing between acquaintances which is unidirectional and in anonymous mode i.e real-name borrowers and lenders remain anonymous. It enables direct ﬁnancial transactions and the use of natural relations between acquaintances along with a reputation mechanics to reduce and eliminate information asymmetry. $693M Commercial banks Qufenqi[Beijing, 2014]: Qufenqi operates an online storefront lets buyers pay in installments. It focuses on smartphones, laptops, and other consumer electronics and also sells fashion goods and sports gear. Customers can choose items from e-commerce sites like Tmall and JD, and then pay for them via Qufenqi by selecting a down payment and the number of months in which they will pay off the remainder. The business model is tailored for students and young white collar workers. Qufenqi charges a premium in exchange for the payment plan. $425M BlueRun Ventures, Alibaba Group Dianrong[Shanghai, 2012]: Dianrong.com (previously known as SinoLending) is a Shanghai-based P2P online lending platform. Dianrong provides credit ratings and risk controls on every loan. In addition, the company also launched cooperation with state-backed China Orient Asset Management Corp. $219M Northern Light VC, Sun Hung Kai Properties Limited, Tiger Global, Standard Chartered CONSUMER FINANCE: Consumer Lending Startups

56. China’s Tremors of Disruption Company Details Funding Investors WeLab[Hong Kong, 2013]: WeLab operates WeLend, Hong Kong’s online lending platform as well as Wolaidai, a mobile lending app for mainland China.WeLab's lending platforms are powered by WeDefend, the company's proprietary risk management technology, claims to use machine learning, big data technologies, and unstructured data to deliver a risk management solution and customer experience. It has pivoted from P2P lending model to B2C model where in it has partnered with financial institutions to provide banking solutions providing credit to people who are unable to obtain financing through traditional channels. $180M Khazanah Nasional Berhad, ING, Sequoia,TOM Group, Iconiq Capital Fenqile[Shenzen, 2013]: Fenqile allows users, primarily college students, to buy electronics they otherwise couldn’t afford via short- and long-term payment plans.The site has partnered with some of China’s largest ecommerce players, and allows users to pick up products like iPads and smartphones without paying the full price up front. Users can choose the length of the plan they want – options range from 3 months up to 18 months – and the interest rate varies accordingly. $100M LISA COATS, Bertelsmann Asia, Matrix Partners,Jingdong Juzilicai[Shenzhen, 2014]: Juzilicai is an online based consumer finance platform aimed as an internet and investment banking platform for its investors.Juzilicai pools money from different investors and gives them a fixed interest rate return.The pooled money is then offered as loans to the borrowers.The average amount of each loan is only 3500 yuan and majorly used to buy consumer goods. $100M Matrix Partners,Xianfeng Huaxing, DST Global, Bertelsmann Asia Tuandai[Guangdong, 2010]: Tuandai is a P2P lending platform that provides an alternative source of credit to consumers. The platform offers several loan products such as mortgages, auto loans, and more. The entire process is online, right from application to disbursement of funds.Tuandai uses services of third party guarantee agencies and third party escrow agencies. $80M Undisclosed CONSUMER FINANCE: Consumer Lending Startups

57. China’s Tremors of Disruption Company Details Funding Investors eLoan[Wenzhou, 2007]: eLoan is an online lending platform where members can borrow and lend money among themselves at better interest rates than banks. It is specifically focused on agriculture, farming and rural areas. Majority of business comes from farmers personal loans which are used for agricultural production. $147M Legend Capital Renrendai[Beijing, 2010]: Beijing-based Renrendai is the leading P2P platform in terms of the total number of outstanding loans. Since its inception, the company has built a nationwide service network covering over 2000 regions with a strong customer base. Renrendai targets white-collar employees and small business owners as customers, charging borrowers a management fee of 0.3 percent of the borrowed money, and a service fee of up to 5 percent for high-risk borrowers.The returns on Renrendai.com loans are between 10 and 18%, which is higher than the 3.25% offered by one year turn deposits in banks.The company also controls default risks by measuring borrowers’ income, occupation, assets and family connections. $133M Dashu Finance [Shenzhen, 2014]: Dashu Finance provides unsecured loans and financing services for small and micro enterprises. It currently operates in six Chinese cities, and provides loans to small business owners, university graduates, government workers and others. It claims to have issued over 400,000 personal and small enterprise loans with over RMB80 billion in total loan value cumulatively. $92M Sequoia, PAG Licaifan[Beijing, 2014]: Licaifain.com is a people to business financial investment platform, operated by Beijing Wangrong Tianxia Financial Information Services Co., Ltd. It claims to provide a safe and efficient one-stop asset allocation investment platform for individuals and families; and low-cost direct financing channel for SMEs. $86M BUSINESS FINANCE: Commercial Loan Startups

58. China’s Tremors of Disruption Company Details Funding Investors PPDai[Shanghai, 2007]: PPDai is an online platform for P2P small unsecured loans in China.The platform created a department dedicated to provide lending services to retailers of Taobao, a subsidiary company of Alibaba and a shopping marketplace targeted for Chinese customers. Platform’s default rate is less than 1.5% and bad debt rate is 1.52%. Ppdai claims to have 2 million registered users and disbursed over $200M in loans. $70M Sequoia, Lightspeed China, Noah Private Wealth, Legend Capital, SIG China Yindou[Beijing, 2013]: Yindou is an online P2P platform that allows investors to lend money to businesses and individuals. The loans available on the platform include property loans, vehicle loans, SMB loans, corporate loans and others. $66M China High Tech Group Yooli[Beijing, 2013]: Yooli is a P2P lending company. Launched in 2013,Yooli cooperates with 23 offline micro-credit companies, offering investors access to loans that are originated from many of the smaller P2P platforms. In order to build trust and confidence,Yooli partners with a third party to assess the credit quality of each individual loan.The company claimed more than 760K registered users with a t urnover of more than 1.8 billion yuan (US$290 million). $60M SoftBank, Morningside Group, Hillhouse Capital Wanglibao[Beijing, 2014]: Wanglibao.com is an online financial platform that focuses on providing loans to small- and medium-sized enterprises (SMEs), unlike the traditional and dominant peer-to-peer (P2P) lending business. $50M IDG Capital Partners Firstp2p[Beijing, 2013]: Firstp2p was launched in July 2013 by UCF Group. It is an internet P2P lending platform, and has helped to match more than RMB20billion of borrowing and investment needs since its inception.The platform connects individual lenders with small- scale borrowers, essentially meeting the needs of small and medium-sized enterprises that don't qualify for bank financing. $41M CITIC Capital Holdings, China Equity BUSINESS FINANCE: Commercial Loan Startups

59. China’s Tremors of Disruption Company Details Funding Investors Wacai[Hangzhou, 2008]: Wacai started as a personal finance book keeping service and management app and then ventured into a lending marketplace that allows investors to invest in P2P loans. Can link online banking, securities,Alipay account as well as different types of assets and keep a track of their accounts. Borrowers are redirected to Quicken Loans for an automated loan application procedure. Borrowers can apply for a loan for less that 100,000 Renminbi for a term not exceeding 24 months. $149M QiMing Venture Partners, New Horizon Capital, CBC Capital, IDG Ventures, CDH Investments Jimubox[Beijing, 2013 ]: JimuStock, an online stock trading platform that provides seamless access to the US equities market. Jimubox has developed a unique account opening experience that leverages the mobile device and technology driven secondary verification techniques to meet strict KYC and AML procedures.Jimubox, is a leading Chinese P2P lending fintech marketplace, is a multi-asset class, multi-product type financial marketplace that provides intelligent financial advice to the Chinese lenders and investors. $131M Ventech China,Xiaomi, Magic Stone Alternative,Vertex Ventures, Mandra Capital 51Zhangdan[Hangzhou, 2012]: 51Zhangdan helps users manage their credit card bills by using data mining technology.Analyses info and gives insights about their spending. The company currently has an accumulated registered users over 36 million and it has manage over 35 million credit cards. $65M Meridian Capital China, SIG, GGV Capital Jinfuzi[Shenzhen, 2012]: Jinfuzi owns and operates as an online wealth management platform.Jinfuzi, which means ‘golden ax’ in Chinese.The website lets investors borrow up to 10 times their principal with only 2,000 yuan ($322) down in order to buy stocks and futures. Shenzhen-based Jinfuzi sells wealth management products including mutual funds, trust and asset management products, via its website and mobile apps geared toward retail investors. It claims the value of wealth management products sold on its platforms has reached RMB10 billion (US$1.61 billion) in January 2015 $60M Sequoia Capital, Renren CONSUMER FINANCE: Wealth & Personal Finance Startups

60. China’s Tremors of Disruption Company Details Funding Investors Lakala[Beijing, 2005]: Lakala (Beijing) is e-billing technology and service company. It offers services for credit card repayment and utility payment (water, electricity, gas bills) transactions. Customers can conduct various ﬁnancial functions such as payment, repayment, recharging and transfer at home.Well-known retailers such as Wal-Mart, CNPC, Sinopec, 7-Eleven,Wu Mart, Quik,and Gome, all have Lakala payment devices. Lakala has released a number of patented personal payment terminal devices, including a mini household card payment device, Super Shield PC card payment device, and mobile card payment device. It has over 75,000 self-service terminal devices in over 300 cities. It also has established partnerships with UnionPay and 50 banks, including China Construction Bank, Bank of China, and Agricultural Bank of China. $274M Legend Capital, China Continent Property & Casualty Insurance, China Taiping Insurance, Fortune Ventures 9now[Shanghai, 2013]: 9now is an intelligent restaurant queuing ordering system which provides a PoS system and each restaurant gets its own back-end management system. It claims to covers Shanghai, Beijing and other cities. $99M Tiantu Capital, Matrix Partners, Baidu 99Bill[Shanghai, 2005]: 99Bill Corporation provides e-mail and mobile phone number based payment solutions. The company offers bank and prepaid card processing, account reﬁlling, mass payment, data security, and online marketing services.Additionally, it provides automatic rel oad payment services for online gaming operations.The company partners with Bank of China, China UnionPay, CITIC Industrial Bank, NetEase, K ingsoft, and NetDragon. 99Bill Corporation was founded in 2005 and is based in Shanghai. $81M DCM, Peninsula Capital, Lightspeed Shanghai Unionpay Merchant Services [Shanghai, 2003]: Shanghai Unionpay Merchant Services Co., Ltd., a subsidiary company of China Unionpay empowered by Shanghai Banking Association, is committed to providing professional POS terminal services. So far, the company has provided POS terminal services for 17 commercial banks in Shanghai district. The company manages and maintains nearly 50,000 POS terminals, providing POS terminal contract signing, installation, training, maintenance and other value-added services for more than 20,000 promissory shops. $23M CITIC Capital Holdings, SAIF Partners PAYMENTS: Payment Solution Startups

61. China’s Tremors of Disruption Company Details Funding Investors WeBank[Shenzhen, 2014]: WeBank is a joint venture led by Chinese gaming and social network group Tencent Holdings.The bank does not have any physical branches and is a complete online offering.The bank derives its name from WeChat, another offering by the Tencent Group. It is one of six banks that have been granted a private banking license in 2014, prior to which there was only one private bank operating within China. $450M Warburg Pincus,Temasek Rong360[Beijing, 2011]: Rong 360 is an online aggregator and comparison provider of various financial products such as bank loans, savings funds, mortgages, P2P loans and credit cards. It builds an all-around direct selling platform of financing and loan products that meets the demands of users and banks. It developed a consumer credit risk management system in 2014. It has presence across 300 cities and provides real-time updates on more than 170,000 financial products. Claims to have 12.3 million users with its users having submitted credit applications for more than RMB2 trillion $255M Lightspeed Ventures, Sequoia, Qunar, KPCB,YF Capital, Sailing Capital Zhong An Insurance [Shanghai, 2013]: Zhong An Online P & C Insurance offers online property and casualty insurance services. It is China’s first online-only insurer, whose initial investors included Alibaba’s finance arm,Tencent and Ping An Insurance. The largest shareholder is Alibaba affiliate Zhejiang Ant Small & Micro Financial Services Group. Zhong An has developed more than 100 products and sold 1.6 billion insurance policies for more than 250 million customers since commencement. $931M Morgan Stanley, Centennial Infant & Child Centre Foundation, CDH Investments, SAIF Partners ALTERNATIVE CORES: Digital Banking & Insurance Startups

62. ”As the world steams towards this new era, the ubiquitous road bumps must be heeded. Regulators are challenged to keep pace and timing can disappoint as new greenshoot activities are eventually regulated or even regulated against. Incumbent banking institutions may instinctively resist and defend themselves from the competitive forces that this ﬁntech revolution represents… For startups, I believe as security becomes a concern and cyber threats grow that customer education will become a core responsibility.” Previously, Jay McCarthy was Executive Director in the Equity Division at Morgan Stanley and worked in the Tokyo, HK, Beijing and Singapore offices for over 16 years. Within this time, Jay served 2 years as Morgan Stanley’s “secondee” to China International Capital Corporation, their JV Chinese Investment Bank. Jay McCarthy, Co-founder & Partner at SparkLabs Global Ventures

63. Asia’s Tremors of Disruption © SparkLabs Global Ventures︎ Asia Ex-China Asia here is deﬁned as all of Asia minus China since China has the most active ﬁntech market in the region by far. We will cover the other markets in more detail in the future.

64. Asia’s Tremors of Disruption The Rise of APAC “Fintech investment in Asia-Pacific more than quadrupled in 2015 to $4.3 billion. It is now the second biggest region for fintech investment after North America, accounting for 19% of global financing activity and up from just 6% in 2010. China has the lion’s share of investment, accounting for 45% in 2015, but India makes up 38% and is growing fast. Mumbai, Bangalore,Tokyo and Beijing are the major fintech hubs in the region by the number of deals. Looking at deal volumes, 78% went to fintech companies targeting the banking industry, 9% to wealth management and asset management companies and 1% to the insurance sector. Payments is the most popular segment for fintech deals in Asia-Pacific, accounting for 38% of the total.” Accenture’s “Fintech and the evolving landscape” Report 2016

65. Asia’s Tremors of Disruption

66. Asia’s Tremors of Disruption

67. "Creating this next generation credit system represents part of Fintech’s major shift toward offering innovative solutions in the ﬁnance and banking sectors. New technologies and modern alternatives enable startup companies like SelfScore to accomplish things for consumers that traditional banks simply cannot provide… Banks are dinosaurs in this situation. They will eventually become more of a utility. If you look at the utilities like electricity or Internet, they have this money pipeline, if you will, around the world.They will provide the infrastructure, but the front end will be dominated by new companies.We are part of that new phenomenon.” SelfScore’s investors include Aspect Ventures, Accel Partners, Pelion Venture Partners, Fenway Summer Venture Capital, and SparkLabs Global Ventures. Kalpesh Kapadia, Co-founder & CEO of SelfScore

68. www.sparklabsglobal.com

FinTech Industry Report 2016

Bernard Moon

FinTech Industry Report 2016