North America’s 20 Most Active Late Funding Investors in Banking Industry

North America’s 20 Most Active Late Funding Investors in Banking Industry

Intro

Over the recent years, the Banking industry underwent significant changes, as did almost every field in the modern world. One of such transformations is the rising popularity of online and mobile banking, which opens a competition for numerous startups worldwide. All services traditionally provided in physical banks, such as transaction processing, lending, and crediting, are now implemented fully online. In addition, banking institutions introduce artificial intelligence to perform specific tasks, like assessing the risks, giving investment advice, or helping predict the client’s behavior. Those are only a few cases where state-of-the-art technologies find their place in the Banking industry.
In North America, the US alone is home to four out of the world’s seven largest banks, which explains the vast sums of money invested into this region’s Banking field. The significant $41.1B of late funding, raised over the last two years, accounts for 63% of the total investments received over the mentioned time. The top 20 VCs and corporate investors, placed according to the amount of capital they contributed, are listed on the chart below:

North America’s 20 Most Active Late Funding Investors in Banking Industry
data provided by Unicorn Nest

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Key takeaways

  • Funds Geography – For the majority of the funds, the country of the funds’ establishment and the country of their most frequent investments coincide. All funds from the sample are based in the United States, with 11 of them in California state. Half of the VCs are divided equally between the two cities, New York and San Francisco, which host five funds each. Among the rest, there are firms from Menlo Park and Palo Alto. Since the fund’s and the startup’s country of origin tend to coincide, the investment geofocus for the funds listed is placed on the United States.
  • Industry Focus – Focused on Finance (given the US-based startup dXdY as an example), the funds also tend to contribute the money to Business Development (Kajabi, US), Real Estate (Snapdocs, US), and Marketing projects.
  • Important Years – The oldest fund, Wellington Management, was established almost 90 years ago, in 1933. The newest one, founded only three years ago in 2018, is Fin Venture Capital. Years 2013-2021 appear to be the period with the most deals made; for some funds, the most active year was 2019. One year later, in 2020, the companies listed experienced the peak of successful exits. Many exits were also performed in 2019, 2016, and 2018.
  • Investments – VCs listed usually participate in two or 7-12 funding rounds annually. , which has the lowest number of rounds, participated only three times. The maximum number of funding rounds, 951, is considerably higher. The average quantity of rounds lies between those two digits and equals 162.9, with a median of 81.5. Regarding the lead investments, the firms participated as leaders 46.7 times on average. Although the listed companies commonly became lead investors only once, there are funds (in this sample – Andreessen Horowitz) that acted so 276 times. Index of difference of lead investments from the average falls between -54.33 and 28.48 for the sampled funds. The average value for this difference and the median (-0.8 and 0.6, respectively), point out that some firms choose to lead the funding less often than others.
  • Typical Rounds – Generally, funding rounds of the top 20 investors in Banking have 4-5 or 6-7 investors; the average round size lies between 100 and 500 million US dollars. Less often, the size appears to be smaller, 50-100 million. The maximum multiplicator for portfolio companies, according to the last known valuation, reaches 1186000000.0. The minimal and the most common multiplicator’s values coincide and equal 0.0. The average value and the median for this multiplicator are 91815790.3 and 1.09, respectively.
Banking Late Stage Venture North America
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