Fintech Funding Plummets to Lowest Levels in Seven Years

In a notable downturn, global funding within the fintech sector has recently hit its lowest ebb since 2017, as disclosed in the latest research findings.
According to the Q1 2024 State of Venture Report by CB Insights, investment in fintech companies experienced a significant 16% decrease during the initial three months of the year.
These statistics present a stark contrast to the robust performances witnessed in the corresponding quarters of the previous two years. For instance, in 2023, a staggering $16 billion was funnelled into 1,271 fintech startups. Similarly, in Q1 2022, an impressive $32.9 billion found its way into 2,026 fintech startups.
Moreover, the total of $7.3 billion raised by startups in Q1 2024 marks the lowest figure seen since early 2017.
The quarter’s largest funding endeavor was spearheaded by Monzo, securing an impressive $430 million, closely trailed by Flexport, a notable provider of trade finance and cargo insurance, securing a $260 million deal.
The lion’s share of funding was enjoyed by US-based companies, with $3.3 billion raised across 393 deals, overshadowing the $2.2 billion raised across 203 deals for European companies in the same period.
While the report did reveal a 15% increase in equity deal-making during Q1, the average deal size did witness a decline, despite a total of 904 deals being made.
Simultaneously, the quarter saw the emergence of 19 new unicorns spread across the US, Asia, and Europe, indicating a slight dip from the 23 unicorns witnessed in the preceding quarter.