In March, funding for fintech startups fell dramatically. In retrospect, it looks like that quarter was more akin to a speed bump than a car crash.
According to a new report from research firm CBInsight and KPMG, global funding for fintech startups picked back up in the first quarter of 2016. Venture capital firms invested $4.9 billion last quarter into startups looking to disrupt the financial services industry.
The report speculates that this could be a great year for fintech investments. The $4.9 billion invested in the first quarter is 96% higher than the $2.5 billion in the same quarter last year. With Alipay’s parent company Ant Financial recently closing a $4.5 billion financing round in April 2016, the report says to expect next quarter to “bring more of the same.”
The uptick is welcome news for the fintech community, which has been dealing with falling stocks and controversy. Earlier this month, Lending Club CEO Renaud Laplanche resigned over an internal audit that showed he breached the firm’s business practices policies. Lending Club employees knowingly sold Jeffries $22 million worth of loans that didn’t meet the buyer’s requirements. Lending Club shares have tanked, and the Department of Justice and the Securities and Exchange Commission announced they were looking into the company. Goldman Sachs has stopped buying Lending Club loans in the meantime.