The Australian fintech industry is due for strong growth over the next year, with platforms one of the most active areas for financing, according to a law firm.
According to DLA Piper’s analysis of 70 venture deals it has advised on in Australia for the 2018 calendar year, fintech is the most funded category of start-up companies.
Forty-one per cent of those deals involved funding into fintech companies.
The law firm said the most active areas for fintech financing are payments, platforms improving use of data including through open banking, anything that is neo-banking related, and alternative lending and mortgage platforms.
DLA Piper partner Joel Cox sees strong growth ahead for the local fintech sector.
"The considerable early stage venture funding over the past five years in fintech in Australia is creating a large number of fintech companies growing revenue at greater than 100 per cent year-on-year,” Mr Cox said.
“They are attracting strong interest from US, UK and Chinese venture capital funds. These funds recognise a growing maturity in our local fintech market and also see Australia as an ideal sandbox for fintechs. A range of our clients are getting four or five term sheets from potential investors."
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