Global fintech funding experienced a 16% reduction in the first quarter of 2024, as revealed by the tech startup analytics company CB Insights in a state of fintech report. The report disclosed a huge difference and a fall from $8.7 billion to $7.3 billion in financial technology companies worldwide in the third quarter of 2024.
According to the report, fintech funding has declined the most since 2007. This decline sharply contrasts with previous gains in the broader venture market.
While the value of the deals might have suffered a stiff quarterly decline, investors remain active in the market but are focused on smaller deals. However, the deals enjoyed a 15 percent increase, making a total of 904 deals against 724 recorded in the last quarter of 2023.
The report highlighted that “An absence of blockbuster deals is driving the decline: In Q1’24, there were just 12 mega-rounds (deals worth $100M+) representing 26% of total funding — the lowest share since Q2’23.
Despite declines in deal size, UK-based challenger bank Monzo still raised a $431M Series I round — the largest fintech deal of the quarter,”
Leading the global fintech funding pile is the United Kingdom’s Monzo, with $431 million in a Series I funding round in March. Another round led by Capital G and supported by Tencent and Google Ventures contributed 5.1 percent to the total fintech funding equating to a $5.1 billion valuation.
Other fintech companies and the amount raised include Flexport in The USA, which raised $260 million in January; American fintech Bilt Rewards raised $200 million in a Series C round in January; Kore.ai raised $150 million; Flagstone raised $139 million; Mew raised 1.5 percent, which equates to $110 million for global fintech funding; and Solaris raised a total of $104 million.
Lastly, Nigeria’s Moove, the Netherlands DataSnipper, the United States FundGuard and Watershed, and Hong Kong’s HashKey raised $100 million in equity funding.
