KPMG and CB Insights have released a new report that analyses fintech venture funding for the first quarter of 2016. The report assesses the trend in across a diverse array of companies and technology including money transfer/remittance, blockchain/bitcoin, equity crowdfunding, insurance tech and many others.

"Q1'16 was a strong quarter for venture capital investment in the fintech sector, characterized by 13, $50+ million rounds to VC-backed companies globally, including Betterment and StoneEagle," said Brian Hughes, Co-Leader, KPMG Enterprise Innovative Startups Network, KPMG LLP. "However, the recent share price decline at publicly-traded fintech companies may dampen private investor enthusiasm moving into Q2."

The report noted that banks and other financial institutions world over are becoming more collaborative, adding that the partnerships are being forged not only between fintech companies and banks, but also from fintechs forming alliances with each other, regulators, and with other industries to achieve common fintech objectives. To that end, the report acknowledges the efforts being made in the development of blockchain technology and expects more of these types of activities in the future.

According to the findings of the report:

• The series A funding round of Digital Asset Holdings, a startup focused on developing of distributed ledger technology for the financial services industry, in which it raised $60 million is the seventh largest fintech deal of Q1’16. Also, the series A funding round of Blockstream, a blockchain-based startup company, in which it raised $55 million takes the ninth spot in this list.
   
• Blockchain Capital, a leading venture capital firm investing in blockchain enabled technology companies, is one of the most active VC Investors in fintech companies over the last 5 quarters by unique company investments.

“When we look 5 years out, the whole blockchain metaphor is likely going to be a serious disruptor for how we’re going to think about any type of transaction – and a transaction isn’t just about money. It’s a contract between two entities”, says Lian Zerafa Partner, National Consulting Financial Services Industry Leader, KPMG in Canada.