No. 56: Corporate Venture Capital Investment in Fintech: A Transatlantic Perspective

Details

Author(s):
Publish Date:
May 4, 2020
Publication Title:
TTLF Working Papers
Publisher:
Stanford Law School
Format:
Working Paper
Citation(s):
  • Jonathan Cardenas, Corporate Venture Capital Investment in Fintech: A Transatlantic Perspective, TTLF Working Papers No. 56, Stanford-Vienna Transatlantic Technology Law Forum (2020).
Related Organization(s):

Abstract

The rise of the “non-traditional” venture capital (“VC”) investor is one of the most significant investment trends in the global VC ecosystem over the past decade. Corporate venture capital (“CVC”) investors are among the most active non-traditional VC investors in terms of deal value and deal volume, and are considered to exert meaningful quantitative and qualitative influence across the VC ecosystem. CVC investment in financial services technology (“Fintech”) startups, in particular, has skyrocketed in recent years as a result of growing technological threats and opportunities faced by traditional financial institutions, including bulge bracket investment banks. From a geographic perspective, cross-border investment from European and U.S. financial services industry CVC investors into European and U.S. Fintech startups has increased the value and volume of Fintech deals between the two regions and has cultivated the development of a robust transatlantic Fintech ecosystem. This paper will provide an overview of the rise of CVC investment in the Fintech sector, highlighting the impact of this category of investor on the transatlantic Fintech marketplace.