1、2Note: 1) Calculated excluding transactions less than $5mTHE VIEWQ1 Fintech perspectives from GP BullhoundFintech platforms at the service of financial institutions on their journey to alpha creationDeep financial technology at the core of a new era for capital markets driving M&A and fundraising ac

2、tivityThe next frontier: disruption of capital marketsIs Bitcoin now the main challenger to gold when danger pervades financial markets?As institutional investor interest in Bitcoin peaks, we note a significant uptick in public and private market investment amongst crypto start-upsBitcoin billionair

3、es: Market mania or the new gold?A record amount of $25.5bn was raised in Q1, with the average deal size of $57m versus $42m in Q4 20201We believe this activity will continue well into H2 2021, driven by investors placing a premium on growth and fintech-focused SPACS coming into EuropeDeal making hi

4、ts record highTakeaways3GP Bullhounds recent Fintech activityA LEADING TECHNOLOGY ADVISORY AND INVESTMENT FIRM, PROVIDING TRANSACTION ADVICE AND CAPITAL.Investment BankingInvestment ManagementINVESTMENT BYINVESTMENT BYINVESTMENT BYACQUIRED BYACQUIRED BYINVESTMENT BYINVESTMENT BYACQUIRED BYINVESTMENT

5、 BYINVESTMENT BYACQUIRED BYACQUIRED BYINVESTMENT BYFund IINVESTMENT BYFund IIIINVESTMENT BYFund IVINVESTMENT BYFund IV4GP BULLHOUNDS SECTOR TAKEAWAYSDeal making hits record high in Q1Fintech deals in Q1 surged, driven by SPACS and mega private roundsWe expect levels of deal making activity to contin

6、ue into H2 2021Deal making in Q1 continues the trend since Q3 2020 as fintech investors and acquirers take advantage of the digital shift created by COVID and strong company performance translates into premium valuations. Although the number of private funding rounds in Q1 did not dramatically rise

7、QoQ, we did see a huge rise in average deal size: the averagedeal size in Q4 2020 was $42m versus $57m in Q1 20211. This jump was driven by mega rounds like Robinhoods $3.4bn raise and the $1.3bn raised by Klarna, but there were other significant rounds like Stripe ($600m), C ($450m), and NUBank ($4

8、00m).The deal-making activity was also driven by the rise of Special Purpose Acquisition Companies (SPACs), which led five acquisitions in the quarter: eToro ($9.6bn), Hippo ($1.2bn), Metromile ($956m), Bakkt ($2.1bn), and SoFi ($8.7bn). We believe that SPACs interest in fintech will continue, espec

9、ially in verticals that benefit from: 1) a growing cashless society and what this means for international money flows; 2) open banking; 3) imbedded finance trading, wealth management, saving, credit, and lending; and 4) crypto.Given the robust growth a lot of fintech companies are experiencing and t

10、he premium investors are placing on this growth which is perceived to be secular we expect demand for deals to continue well into the second half of this year.We also note that while SPACs have mainly been an American phenomenon, we believe that Europe is now starting to catch up given the size of p

11、rivately funded tech businesses that could be ideal targets. We believe European fintechs will start to garner more attention from SPACs, especially as European SPACs start to come to market. Just three SPACs listed in Europe last year, netting $495m. So far this year, Lakestar raised 275m in Februa

12、ry, 468 Capital is looking to raise 300m, and European Fintech IPO Company BV (a fintech-focused SPAC) raised 415m when it floated in Amsterdam.Sources: Capital IQ, Pitchbook, MergerMarket, and press releases (as of 31 March 2021); Note: 1) Calculated excluding transactions less than $5mSelect trans

13、actionsin Q1 2021DEAL DATE: JAN-21 TTV: $3.4N EV/REV: N/ADEAL DATE: MAR-21TTV: $1.3BNPOST-MONEY: $31.0BNDEAL DATE: FEB-21LRS1: XETRARAISED: 275MDEAL DATE: MAR-21EFIC1.ASRAISED: 415MTakeaways5GP BULLHOUNDS SECTOR TAKEAWAYSThe next frontier: Disruption of capital marketsDEAL DATE: MAR-21TTV: $2.6BNEV/

14、 REV: 12.8XDEAL DATE: MAR-21 TTV: $3.8BNEV/ REV: 15.0XDEAL DATE: DEC-20TTV: $45M TTV/REV: N/ASelect transactionsin Q1 2021Sources: Capital IQ, Pitchbook, MergerMarket, and press releases (as of 31 March 2021)Fintech platforms at the service of financial institutions on their journey to alpha creatio

15、nDeep financial technology at the core of a new era for capital marketsUntil recently, FinTech start-ups have been flourishing in the payments, remittance, peer-to-peer lending and equity crowdfunding sectors, but had not cracked the capital markets.Recently, we have seen an increase in activity in

16、capital markets with solutions to complex front-, middle- and back office problems are emerging in the form of fintech solutions.This change is being enabled by the digitalisation of legacy systems, a democratisation of AI-driven decisioning and finally, a need for tailored and agile solutions where

17、 financial technology comes into play.Many financial institutions have been racing to get the right set of analytics and data capabilities. This has laid the foundations for disruption in capital markets with traditional players now able to integrate AI/ML technologies in their investment processes.

18、Despite the hype, AI is not primarily an “automation technology” but a “prediction technology”. In this industry which is concerned with the management of financial uncertainty, fintech companies focused on capital markets solutions can automatically model complex probabilistic systems. This is a pr

19、ofound change in the industry, and it is happening right now.This change is being reflected in some of the current deal activity that we see. This quarter has seen two marquee M&A transactions in capital market software transactions with the acquisition of Itiviti by Broadridge for $2.5bn and the ac

20、quisition of Calypso by Thomas Bravo for $3.7bn.Fundraising has been very active in the segment as well, notably with:Chainalysis raising $100m from Paradigm Capital. Chainalysis serves financial institutions in their path to implementing and managing blockchain solutions in their client solutions.U

21、K-based Finbourne launched LUSID in Aug-19, an open cloud-based investment data platform, and is tackling the European capital market landscape to become a prominent player in the region.DEAL DATE: MAR-21TTV: $100MPOST-MONEY: $2.3BNTakeaways6GP BULLHOUNDS SECTOR TAKEAWAYSBitcoin billionaires: Market

22、 mania or the new gold?TakeawaysSelect transactionsin Q1 2021Sources: Capital IQ, Pitchbook, MergerMarket, Press Releases, and Coinbase (as of 31 March 2021)Is Bitcoin now the main challenger to gold when danger pervades financial markets?We note significant uptick in public and private market inves

23、tment amongst crypto start-upsAt the end of 2019, the price of Bitcoin stood at just over $7k. By the end of March 2021 the price increased +8x to c.$60k. This phenomenal price increase makes Bitcoin one of the best-performing asset classes in the pandemic.In developed markets policymakers are doing

24、 everything they can to generate growth and inflation, and as part of that making cash and cash-like assets increasingly unattractive. If inflation is coming, you want to hold a real asset to hedge against it.Typically investors have fled to gold, which is a great store of wealth due to its limited

25、supply and the relative ease by which it can be transferred and exchanged in todays digital world. Bitcoin shares some of these qualities and with a maturation of crypto regulation, we anticipate institutional investors will look to increase their exposure.In the public markets, mega deals in the sp

26、ace include eToro, the online investment platform that went public via a SPAC in a deal that values the combined business at $10.4bn. Similarly, Coinbase, the digital currency exchange, is set to follow suit shortly with a planned direct listing.In the private markets we note a flurry of activity of

27、 late, including:Fireblocks, having raised $133m in March 2021, began life providing the infrastructure for moving, storing and issuing digital assets to crypto-native institutions and exchanges. Now the company is working with traditional banks and fintechs, which are facing growing demand from cus

28、tomers to enable digital asset products and services.B raised $300m in March 2021, valuing the company at $5.2bn, one month after the firm raised $120m in funding from a host of macro investors including Google Ventures. Founded in 2011, B now has over 65m crypto wallets, over 3m verified users, and

29、 a reported 28% market share of all bitcoin transactions.DEAL DATE: APR-21IPODEAL DATE: MAR-21 EV: $10.4BNDEAL DATE: MAR-21TTV: $133MDEAL DATE: MAR-21 TTV: $300M7M&A AND FUNDRAISING ACTIVITY BY QUARTERStrong funding environment in fintech continuesAlthough the number of funding rounds which complete

30、d in Q1 2021 remained relatively consistent versus the previous quarter we have seen a material uplift in the size of rounds. This was predominantly driven by larger rounds like Klarna ($1.3BN) and Robinhood ($3.4BN)2, 0001, 6001, 20080040002520151050Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018

31、Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021To tal capital invested (LHS)Volume (RHS)450400350300250200150100500120100806040200Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q1 2020Q2 2020Q3 2020Value (LHS)Volume (RHS)0%20%40%60%80%100%Q2 2017Q3 2017Q4 2017Q1 2018Q

32、2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021M&A deal value by regionFundraising deal value by region0%20%40%60%80%100%Q2 2017Q3 2017Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021AmericasEuropeAsiaOtherAmericasEuropeAsiaOthe

33、rSources: Pitchbook (as of 31 March 2021); Note: (1) Spike in value in Q3 2019 due to four extraordinary large transactions with an aggregate value of $82bn (Worldpay/FIS ($35.5bn), Total System Services/Global Payments ($24.5bn) , First Data/Fiserv ($22bn), (2) Spike in value in Q4 2020 due to an e

34、xtraordinary large transaction of $22bn (TD Ameritrade/Charles Schwab & Co) (, (3) Spike in fundraises value in Q2 2018 was caused by an extraordinary large investment in Ant Financial ($14bn)Transaction M&A deal value and volume$bn, number of deals140Fundraising deal value and volume$bn, number of

35、deals(1Q) 3 2019Q4 2019Q4 2020(2)Q1 2021Q4 2017(3) Q1 2018(3)Transaction trends8NOTABLE FINTECH M&AFintech M&A activity rebounds in Q1 2021Fintech M&A sets a Q1 record, with $71bn in value versus $25.6bn in Q1 2020Sources: Pitchbook, Capital IQ, and Mergermarket (as of 31 March 2021); Note: 1) NTMDe

36、al dateTargetBuyerTarget descriptionEV ($m)Implied EV/LTM Rev29-Mar-21Trading software intended to serve the global financial industry2,55612.8x22-Mar-21Cloud-enabled front-to-back technology software services for the financial markets3,75015.0 x16-Mar-21Fintech Acquisition Corp V (SPAC)Social tradi

37、ng and investing platform9,600-08-Mar-21Cloud-based wallet designed for digital asset protection-08-Mar-21Banking software provider1,811-04-Mar-21SPACDigital home insurance service1,200-22-Feb-21Payment platform designed to meet clients omnichannel retail requirements60510.6x17-Feb-21Credit financin

38、g platform1,6507.3x12-Feb-21Online comparison portal for instalment loans and private financial products242-11-Feb-21Cloud-based fraud detection and anti-money laundering software2,75019.6x(1)10-Feb-21SPACDigital insurance platform9568.6x02-Feb-21Digital financial services platform designed to offer

39、 knowledge about investment1,0003.5x29-Jan-21Financial data and risk analytics tools14,8004.2x11-Jan-21SPACCrypto exchange platform and wallet2,100-07-Jan-21Social Capital Holdings V (SPAC)Digital financial lending platform8,65013.9xTransaction trends9DateTargetLead investor(s)Target descriptionCapi

40、tal raised ($m)31-Mar-21Insurance platform25030-Mar-21Fintech enterprise SaaS to automate accounts receivables30026-Mar-21Cryptocurrency investigation and compliance software10024-Mar-21Digital assets platform30018-Mar-21Payment software connecting banks and SMEs5017-Mar-21Software to automate payro

41、ll tasks10816-Mar-21Cryptocurrency investment platform17014-Mar-21Online payments processing platform60011-Mar-21Wealth management platform to manage crypto assets35010-Mar-21Commercial motor insurtech15008-Mar-21Digital-only banking platform379DateTargetLead investor(s)Target descriptionCapital rai

42、sed ($m)01-Mar-21BNPL platform1,29010-Feb-21Socially conscious financial solutions for homeowners25001-Feb-21Commission-free trading platform3,40028-Jan-21Digital-only banking platform40025-Jan-21B2B payments platform11019-Jan-21Electronic payment software18013-Jan-21Digital lending platform30013-Ja

43、n-21Banking and remittance services30012-Jan-21Online payments platform45007-Jan-21SaaS cloud banking platform13405-Jan-21Corporate spend management platform165Sources: Pitchbook, Capital IQ, and Mergermarket (as of 31 March 2021)SELECT FINTECH FUNDRAISINGSRecord level of fundraising activity in fin

44、techThis quarter sees record funding of $25.6bn with large late-stage rounds including $3.4bn raised by Robinhood and $1.3bn raised by Klarna. Hot sectors this quarter include Blockchain, Payments, and Neobrokers.Transaction trends10Source: Capital IQ (as of 31 March 2021); Note: Presented on a loga

45、rithmic scale274.4)10.0137.3284.4Market Cap as at 31 December 20Change in Market Cap to 31 March 21Current Market Cap(1.6)138.998.15.1103.2(2.870.667.8(3.9)26.022.1(2.7)21.718.9(2.5)16.614.1(1.3)7.66.3(1.2)6.85.6(0.5)4.43.91.01.22.10.40.8GP BULLHOUND FINTECH INDEX BY MARKET CAPITALISATIONPerformance

46、 being driven by payments and lendersThe value of GP Bullhounds fintech index increased by c.$12.6bn in Q1 2021, compared to a $123bn increase in Q4 2020($bn)Public company analyses114x9x14x19x24xMar-18Sep-18Mar-19Sep-19Mar-20Sep-20Mar-21GPB Fintech Index - TEV/LTM RevenuesGPB Fintech Index - TEV/NT

47、M RevenuesSources: Capital IQ (as of 31 March 2021); Note: EV/Rev multiples except for online lenders, which are computed as Market Cap/Rev multiples. Fintech Index constituents are PayPal, Shopify, Square, Adyen, Market Axess, Xero, Envestnet, Q2, Blackline, Lending Club, Funding Circle, Ondeck, an

48、d AfterpayMean: 15.4xMean: 14.1xGP BULLHOUND FINTECH INDEX VALUATIONSValuations off from 2020 year-end highs but still robustInflation concerns have impacted share valuations, but strong underlying performance still underpins historically high levelsAs of 31 March 2021, the fintech index is trading

49、at 18.6x trailing 12-month revenues, which is 21% above the 3-year average As of 31 March 2021, the fintech index is trading at 17.6x next 12-month revenues, which is 25% above the 3-year averageMar 2020: LTM multiples were down 22%1 vs. 3-year average due to the effects of COVID-19February tech sel

50、l off due to market fears of rising interest rates that the Fed could loose a grip onDec 2018: Trade war with China leads to a market-wide sell-offVolatility as tech stocks suffer their worst sell-off since the market turmoil in MarchPublic company analyses12Source: Capital IQ (as of 31 March 2021)6

51、0110160210260Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20Jan-21Feb-21Mar-21 Performance1 Month3 Months6 Months1 YearPayments(8.1%)(3.2%)21.8%121.3%Nasdaq0.4%2.8%18.6%72.0%Financial Data & Analytics0.6%(7.5%)7.0%51.9%HR & Payroll(1.4%)(6.3%)17.8%67.5%Banking Technology(5.6%)(11.2%)5.0

52、%28.9%SHARE PRICE PERFORMANCE LAST 12 MONTHSCorrection in growth tech stocks as investors consider inflationThe correction in the broader tech market has impacted all fintech sub-sectors, with banking technology suffering the most over L3M.Public company analysesLTM performance+121.3% Payments+72.0%

53、Nasdaq+51.9%Financial Data & Analytics+67.5%HR & Payroll+28.9%Banking Technology13GP BULLHOUND FINTECH INDICES INDICATIVE TRADING VALUATION BENCHMARKSGP Bullhound fintech indices valuation benchmarksPublic company analysesSources: Capital IQ (as of 31 March 2021); Note: Only selected logos shown; 1)

54、 Mean11.4x26.3x32.7%Banking Technology12.6%11.4x33.1x28.8%HR & Payroll12.8%EV/ 2021Erevenue (1)EV/2021E EBITDA (1)Selected companiesVerticals2021E revenue 2021E EBITDA growth (1)margin (1)9.1x21.3x37.0%Financial Data & Analytics8.7%11.9x28.4x36.9%Payments30.2%14“We have removed all the complexity an

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