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Global Fintech Fundraising Fell in First Half of 2019, with Decline in China Offsetting Gains in the US and Europe, Accenture Analysis Finds

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Value of deals falls 29% after record Ant Financial round in 2018; Fundraising soars in the US and the UK, with strong gains also in Germany, Sweden and France

HONG KONG & NEW YORK & LONDON–(BUSINESS WIRE)–Global investment in financial technology (fintech) ventures fell sharply in the first half of 2019, as fundraising and deal activity in China that had soared a year earlier ground to a halt, partially offsetting strong gains in the U.S., U.K. and several other European countries, according to Accenture (NYSE: ACN) analysis of data from CB Insights, a global venture-finance data and analytics firm.

The total value of fintech deals globally in the six months ended June 30 was US$22 billion, compared with US$31.2 billion in the same period of 2018, a decline of 29%. The drop was due mostly to the lack of a giant deal like Ant Financial’s record US$14 billion fundraising in May 2018. Discounting that transaction, global fintech investments would have climbed 28% in the first half of 2019 over the same period last year.

The value of deals in the U.S. in the first half of 2019 jumped 60%, to US$12.7 billion, even though the number of transactions was virtually unchanged from the first half of 2018 (564 vs. 563), signaling a trend of larger deals in the world’s biggest and most active fintech market. The largest portion of funding, 29%, went to lending startups, followed by those in payments, with 25% of the total. The largest deal was the US$1 billion that consumer finance fintech Figure Technologies Inc secured from a credit facility in May.

Fintech investment in the U.K. nearly doubled, to approximately US$2.6 billion, and the number of deals jumped 25%, to 263, as challenger banks and payments companies continued to draw investors’ interest. For example, Monzo raised US$144 million in June; Starling Bank raised US$211 million from two separate transactions in February; money-transfer startup TransferWise closed a US$292 million deal in May; and WorldRemit raised US$175 million in June.

“There’s been a lot of interest and demand from consumers for new fintech propositions, particularly in the U.K. and elsewhere in Europe, which helps explain the big jump in investments there,” said Julian Skan, a senior managing director in Accenture’s Financial Services practice. “Fundraising is also moving to support the scaling up of challenger and collaborative fintech, which will cause lumpiness in some rounds as we get to the business end of the investment cycle where investors look for returns based on a sustainable bottom line, rather than another buyer. However, the question is: How long can that last? Fundraising is likely to reach a plateau soon and will most likely dip going forward.”

Other European markets also made big strides, with investments in German fintechs more than doubling in the first half of 2019, to US$829 million from US$406 million in the same period last year, led by the US$300 million that challenger bank N26 raised in January and the US$125 million investment in insurtech Wefox Group in March. Fundraising in Sweden more than quadrupled, to US$573 million, while fintechs in France raised US$423 million in the first half of 2019, 48% more than a year earlier.

There were also large fundraising gains in Asia Pacific, with the value of deals in Singapore nearly quadrupling, to US$453 million, and the value of deals in Australia more than tripling, to US$401 million.

Investments into payments startups and those in lending took the bulk of global fintech fundraising, accounting for 28% and 25% of the total, respectively, while insurtechs raked in 14%.

The number of fintech deals globally rose about 2% from the first half of 2018, to 1,561, but activity was mixed in the world’s largest markets. While the number of deals was flat in the U.S. and rose sharply in the U.K., China and India experienced volume declines of 49% and 21%, respectively. But these were offset by higher volume elsewhere, including other parts of Asia — with Singapore and Japan seeing the number of deals increasing 55% and 33%, respectively — and in Europe, with the number of deals doubling in Sweden, to 40, and rising 27% in Germany, to 56.

“Increased activity in many markets is a good indicator of the level of confidence many investors have in the fintech industry,” said Piyush Singh, a managing director at Accenture who leads its Financial Services practice in Asia-Pacific and Africa. “Startups and the solutions they offer are maturing, which bodes well for traditional institutions partnering with fintechs and for innovation in the financial services industry as a whole.”

Methodology

Accenture analyzed fintech investment data from CB Insights, a global venture-finance data and analytics firm. The analysis included global financing activity from venture-capital and private-equity firms, corporations and corporate venture-capital divisions, hedge funds, accelerators, and government-backed funds. The investment data ranged from 2010 through the first half of 2019 and included equity and non-equity financing. Fintech companies are defined as those that offer technologies for banking and corporate finance, capital markets, financial data analytics, insurance, payments and personal financial management.

About Accenture

Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions — underpinned by the world’s largest delivery network — Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 482,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Contacts

Elzio Barreto

Accenture

+852 9509 3236

elzio.barreto@accenture.com

Natalie de Freitas

Accenture

+44 7988165382

natalie.de.freitas@accenture.com

Melissa Volin

Accenture

+1 267 216 1815

melissa.volin@accenture.com

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Business Wire

Over 100 Blue Bird Electric School Buses Plugging into Districts

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Blue Bird’s clean, green electric school bus technology expands with Cummins partnership, saving schools money and cutting emissions

MACON, Ga.–(BUSINESS WIRE)–Across North America, some students going back to school this fall will ride electric school buses. More than 100 electric school buses, powered by a Cummins fully electric drivetrain, have been ordered to date from Blue Bird Corporation, a school bus manufacturer highly focused on alternative fuel technologies.


Blue Bird electric buses are already operating in California, North Dakota and Washington. Additional buses on order will transport students in California, Colorado, New Jersey, New York and Quebec later this year or in 2020.

“The amount of interest has been outstanding; people are very excited about a 100-percent electric-powered school bus,” said Phil Horlock, president and CEO of Blue Bird Corporation. “The nation is increasingly influenced in electric vehicle transportation in general, and we anticipate rapid growth of electric school buses as more districts are educated on the zero-emissions and low-maintenance benefits they bring to their local communities.”

Blue Bird has been working with electric technology in school buses since 1994, and recently partnered with the Cummins Electrified Power business segment. Cummins produces the all-electric drivetrains that power Blue Bird’s Vision Electric and All American Electric buses. The partnership brings over 30 years of electric drivetrain experience to this fast-growing segment, and almost 200 combined years of leadership in customer support. Over the next three years, Cummins is investing $500 million in electrification to bring dependable, high quality, fully electric and hybrid solutions to market across a wide range of applications.

“Cummins and Blue Bird are committed to supporting customers and ensuring that we are safely transporting our children and improving air quality for communities,” said Julie Furber, vice president of electrified power at Cummins Inc. “Schools can count on Cummins to deliver the same level of support and service network for these electric buses that we’ve always delivered through our more than 200 wholly-owned branch locations and 3,200 service technicians in North America.”

The innovative Blue Bird electric bus delivers abundant benefits to students, drivers and taxpayers. The buses produce zero emissions, improve air quality and require less maintenance, saving districts time and money. The buses are capable of up to 120 miles of range and can be recharged in approximately eight hours using a standard SAE J1772 Level 2 charger, making overnight charging convenient.

For more information on Blue Bird’s electric school buses, visit www.blue-bird.com/electric.

About Blue Bird Corporation

Blue Bird (Nasdaq: BLBD) is the leading independent designer and manufacturer of school buses, with more than 550,000 buses sold since its formation in 1927 and approximately 180,000 buses in operation today. Blue Bird’s longevity and reputation in the school bus industry have made it an iconic American brand. Blue Bird distinguishes itself from its principal competitors by its singular focus on the design, engineering, manufacture and sale of school buses and related parts. As the only manufacturer of chassis and body production specifically designed for school bus applications, Blue Bird is recognized as an industry leader for school bus innovation, safety, product quality/reliability/durability, operating costs and drivability. In addition, Blue Bird is the market leader in alternative fuel applications with its propane-powered, electric-powered and compressed natural gas-powered school buses. Blue Bird manufactures school buses at two facilities in Fort Valley, Georgia. Its Micro Bird joint venture operates a manufacturing facility in Drummondville, Quebec, Canada. Service and after-market parts are distributed from Blue Bird’s parts distribution center located in Delaware, Ohio. For more information on Blue Bird’s complete line of buses, visit www.blue-bird.com.

About Cummins®, Inc.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana (U.S.A.), since its founding in 1919, Cummins employs approximately 62,600 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and over 7,600 dealer locations and earned about $2.1 billion on sales of $23.8 billion in 2018.

Contacts

Justyne Lobello | 478.396.3487 | Justyne.Lobello@blue-bird.com

 

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Business Wire

Shareholder Alert: Robbins Arroyo LLP Announces Another Complaint Filed Against Casa Systems, Inc. (CASA)

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SAN DIEGO & ANDOVER, Mass.–(BUSINESS WIRE)–$CASA #classaction–Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Casa Systems, Inc. (NASDAQ: CASA) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its December 2017 initial public offering (“IPO”). Casa Systems provides customers with software-centric broadband connectivity in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa.

If you suffered a loss as a result of Casa Systems’ misconduct, click here.

Casa Systems, Inc. (CASA) Accused of Misleading Investors in IPO

According to the complaint, Casa Systems held its initial public offering in December 2017 offering 6,000,000 common shares at $13 per share. Its registration documents stated that its core CCAP products and new technology initiatives would allow for a compelling market opportunity and touted the fact that these initiatives would prompt Casa Systems to experience continued rapid growth. However, these documents were false and misleading as Casa Systems failed to disclose material information about the state of its customers’ spending. In reality, Casa Systems knew its key customers’ spending had entered a “digestion” period that curtailed any new product purchases. On August 14, 2018, Casa Systems announced disappointing financial results and cut its revenue guidance for the year by $50 million. On this news, Casa Systems stock declined from $15.60 to $12.08, a drop of almost 23%. Since then, Casa Systems has continued to have disappointing financial results and the stock now trades at just $6.56, a decline of 49% from its IPO price.

Casa Systems, Inc. (CASA) Shareholders Have Legal Options

Contact us to learn more:

Leo Kandinov

(800) 350-6003

lkandinov@robbinsarroyo.com

Shareholder Information Form

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contacts

Leo Kandinov

Robbins Arroyo LLP

5040 Shoreham Place

San Diego, CA 92122

LKandinov@robbinsarroyo.com

(619) 525-3990 or Toll Free (800) 350-6003

www.robbinsarroyo.com

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Business Wire

JSR Establishes Investment Subsidiary to Accelerate New Business Development

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TOKYO–(BUSINESS WIRE)–JSR Corporation has announced that it will establish a wholly-owned subsidiary for investment (Limited Liability Company) to accelerate new business development around digital technologies. The subsidiary, JSR Active Innovation Fund, LLC, will launch on October 1, 2019, and will invest globally in start-up companies mainly focusing on digital technology.

With the rapid growth of digitization and innovations generated from start-ups, the conventional market structure will change dramatically in the near future, and all companies will need to seek new business models that utilize digital technology,” said Eric Johnson, CEO of JSR Corporation.

JSR has been actively and globally investing in start-ups that have innovative technology or business models. For example, JSR recently invested in Carbon, a Silicon Valley based digital manufacturing company that invented a new process called Digital Light SynthesisTM enabling rapid production at scale.

Through further strategic investment via the new subsidiary, JSR will accelerate new business development and provide new value by combining JSR knowledge and experience with innovative technology and business models generated by starts-ups.

Investment by JSR Active Innovation Fund LLC will begin with an initial round of 3 billion yen and is expected to grow up to 10 billion yen. Through this investment activity, JSR will collaborate with start-ups as strategic partners and support further expansion.

Contacts

Missy Bindseil

mbindseil@jsr-nahq.com

830-237-9527

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