Fintech Funding Slumps Despite Startup Boom

06 May 2024

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.

Play audio


Share:

Comments

No comments

Add your comment

Search Blog

Recent Posts

SeamlessHR Targets $720 Million Public Sector with Ambitious Expansion Plans SeamlessHR, a prominent Nigerian HR-tech startup,...
How to Implement Green Technologies in Your Workplace As sustainability becomes a crucial aspect of mode...
Egyptian Fintech Khazna Secures $16M in Pre-Series B Funding Khazna, a leading Egyptian fintech company, has su...
Nigeria Targets 70% Internet Penetration by 2025 with National Broadband Alliance The Nigerian Communications Commission (NCC) has o...
Sustainable Innovation: How Tech Startups are Leading the Way In an era defined by pressing environmental challe...

Related Post

GTCO’s HabariPay Sees Profit Surge 30.7% as Nigeria's Fintech Market Heats Up
Guaranty Trust Holding Company’s (GTCO) fintech subsidiary, HabariPay, has poste...
African Startups Defy Economic Challenges with Record Funding and Innovations in H1 2024.
The African startup ecosystem has shown remarkable resilience and innovation in...
Banking Fraud Hits 80,000 Customers in Nigeria, Reveals NIBSS Report.
Nigeria Inter-Bank Settlement System (NIBSS) has reported that over 80,658 bank...
Logo

Accelerating the growth of Africa's tech ecosystem