The decline in global fintech funding continued last year albeit at a slower pace, according to CB Insights’ Fintech Report 2024. The report gleaned that fintech startups worldwide secured a total of $33.7 billion funding in 2024 which represented a 20% drop from the previous year. In tandem with this, there was a 17% drop in deal volume to 3,580.
Despite this downtrend, certain positives surfaced. This annual funding decline marked the smallest for fintech in the past three years. Reflecting a late rally, the Q4 funding for 2024 got to $8.5 billion, an 11% increase when compared to Q3. Meanwhile, fintech median deal size enjoyed an annual boost of 33% reaching $4 million.
In highlight news, LemFi, a UK-based fintech solution for immigrants, garnered $53 million in fresh funding, whereas Recharge, a European prepaid payment solution, secured a €45 million support from ABN AMRO. Interestingly, financial services provider Hyperline reported an initial €4 million funding from Index Ventures, with an additional $10 million funding announced later.
In additional news, trading platform eToro allegedly filed for a confidential U.S. IPO in the ballpark of $5 billion, while Amazon announced its acquisition of Indian ‘buy now, pay later’ startup, Axio.
Finally, in a breakthrough for fintech, Plaid Inc. reportedly had more than a 25% revenue growth while Phantom Technologies closed a $150 million funding round at a $3 billion valuation.
Original source: Read the full article on TechCrunch
