Apr 15, 2024 485

"Fintech funding slides to 7-year low "


"Global funding in the fintech sector has fallen to its lowest level since 2017, according to newly published research. "

The latest research indicates a notable decline in global funding within the fintech sector, reaching its lowest level since 2017. According to the Q1 2024 State of Venture Report by CB Insights, investment in fintechs experienced a 16% decrease during the first quarter of the year, painting a stark contrast to the preceding years' robust opening quarters.

In 2023, fintech startups attracted a staggering $16 billion in funding across 1,271 ventures, while Q1 2022 saw an even larger investment of $32.9 billion spread across 2,026 startups. However, the trend took a significant downturn in Q1 2024, with only $7.3 billion raised, marking the lowest figure seen since early 2017.

Despite the overall decline, notable fundraising activities include Monzo securing $430 million, followed by a $260 million deal for Flexport, a provider of trade finance and cargo insurance. While US-based companies led the pack with $3.3 billion raised across 393 deals, European companies also secured significant funding, totaling $2.2 billion across 203 deals. Moreover, the quarter witnessed a 15% increase in equity deal-making, though the average deal size experienced a decline. Additionally, the emergence of 19 new unicorns across the US, Asia, and Europe demonstrates continued innovation and growth potential in the fintech landscape, albeit slightly down from the previous quarter's count.