The decline in global fintech funding starkly contrasts with the broader gains in the venture market.
Global fintech funding experienced a significant drop in the first quarter of 2024, decreasing by 16% compared to the same period last year, according to the State of Fintech report by tech startup analytics company CB Insights.
The report reveals that financial technology companies worldwide attracted $7.3 billion in Q1 2024, down from $8.7 billion in Q3 2023. This 16% slump marks the largest quarterly decline in fintech funding since 2017.
While the overall value of fintech deals dropped, the number of deals increased by 15%, totaling 904 deals compared to 724 in Q4 2023. This indicates that investors remain active but are focusing on smaller deals.
Additionally, the average deal size in 2024 has declined, with an average of $11.1 million year-to-date, an 18% decrease from the $13.6 million average in 2023.
“A dearth of blockbuster deals is driving the decline: In Q1 2024, there were just 12 mega-rounds (deals worth $100M+), representing 26% of total funding — the lowest share since Q2 2023. Despite declines in deal size, UK-based challenger bank Monzo still raised a $431 million Series I round — the largest fintech deal of the quarter,” the report noted.
Top Global Fintech Funding in Q1 2024
Leading the global fintech funding in Q1 2024 was the United Kingdom’s Monzo, which raised $431 million in a Series I funding round in March. Led by Capital G and supported by Tencent and Google Ventures, this round contributed 5.1% to the total fintech funding for the quarter, giving Monzo a valuation of $5.1 billion.
Next, the USA’s Flexport raised $260 million in convertible notes in January, funded by Shopify, contributing 3.6% to the total quarterly fintech funding.
American fintech Bilt Rewards raised $200 million in a Series C round in January, led by General Catalyst, resulting in a $3.1 billion valuation and contributing 2.8% to the global total for the quarter.
Another American fintech, Kore.ai, raised $150 million in a Series D round in January, led by FTV Capital, contributing 2.1% to the global quarterly total funding in the fintech sector.
The United Kingdom’s Flagstone raised $139 million in a Private Equity round financed by Estancia Capital Partners in March, contributing 1.9% to the sector’s total funding between January and March.
Mews, a fintech company from the Netherlands, raised $110 million in a Series D funding round in March, led by Kinnevik and Goldman Sachs Asset Management, contributing 1.5% to global fintech funding and valuing Mews at $1.2 billion.
Germany’s Solaris raised $104 million in a Series F round in March, led by the SBI Group, contributing 1.4% to the total global quarterly funding.
Additionally, Nigeria’s Moove, the Netherlands’ DataSnipper, the United States’ FundGuard and Watershed, and Hong Kong’s HashKey each raised $100 million in equity funding during the quarter.
Source: technext24.com
