Banks and corporations helped push financial technology start-up funding to an all-time high, according to a joint report by KPMG and CB Insights.
The global funding tally of $13.8 billion represents a doubling of money put to work by investors in 2015, according to the report.
Corporate investors participated in 1 in 4 U.S. fintech deals, according to the report. In 2015, the value of fintech deals and the number of investments hit all-time highs as investors clamored to buy into budding start-ups. The report suggested that even more fintech funding may come from corporates.
"While corporate investors will likely continue to invest in fintech in order to drive their own internal innovation and ability to compete with non-traditional market entrants, some institutional investors may shift away from fintech investing in the short term due to lower perceived rates of return," the report said.
The increased investing activity came as sector initial public offerings performed poorly. Lending Club, which debuted on public markets in late 2014, struggled last year and On Deck Capital, which lends to small businesses, also saw disappointing stock performance after its IPO in late 2014. After both companies saw shares trade up immediately after their public offering, prices have fallen more than 60 percent each. When payments start-up Square priced its IPO late in 2015, the company sold shares below its expected range.