A new report reveals a surprising decline in global fintech funding during the first quarter of 2024. Despite an 11% increase in total venture capital funding for startups worldwide (reaching $58.4 billion), fintech investments dropped by 16%, according to CB Insights' Q1 2024 State of Venture Report.
The report shows a significant decrease in fintech funding, with startups raising only $7.3 billion in Q1. This represents the lowest level of investment since early 2017. However, there's a positive sign: a 15% surge in equity deal activity within the sector suggests continued investor interest in fintech solutions, particularly those focused on payment technologies.
Fintech startups attracted a total of 904 investments during the quarter. The leader was UK-based Monzo, securing a substantial $430 million in funding – the highest amount raised by any company in Q1.
The report also delves into the geographical distribution of funding. US-based companies received the largest share, garnering $3.3 billion across 393 deals. Europe followed closely behind, with fintechs securing $2.2 billion through 203 deals.
Shifting the focus to Africa, a separate report titled "Africa: The Big Deal" reveals that startups on the continent received $466 million in funding during Q1 2024. Interestingly, the transport and logistics sector emerged as the top fundraiser for the quarter, accounting for 32% of the total funds raised. Fintechs, however, remained a strong contender, contributing 23% to the total funding in Africa.
A new report reveals a surprising decline in global fintech funding during the first quarter of 2024. Despite an 11% increase in total venture capital funding for startups worldwide (reaching $58.4 billion), fintech investments dropped by 16%, according to CB Insights' Q1 2024 State of Venture Report.
The report shows a significant decrease in fintech funding, with startups raising only $7.3 billion in Q1. This represents the lowest level of investment since early 2017. However, there's a positive sign: a 15% surge in equity deal activity within the sector suggests continued investor interest in fintech solutions, particularly those focused on payment technologies.
Fintech startups attracted a total of 904 investments during the quarter. The leader was UK-based Monzo, securing a substantial $430 million in funding – the highest amount raised by any company in Q1.
The report also delves into the geographical distribution of funding. US-based companies received the largest share, garnering $3.3 billion across 393 deals. Europe followed closely behind, with fintechs securing $2.2 billion through 203 deals.
Shifting the focus to Africa, a separate report titled "Africa: The Big Deal" reveals that startups on the continent received $466 million in funding during Q1 2024. Interestingly, the transport and logistics sector emerged as the top fundraiser for the quarter, accounting for 32% of the total funds raised. Fintechs, however, remained a strong contender, contributing 23% to the total funding in Africa.
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