Global Fintech Startup Funding Dipped by 16% in Q1 2024
According to a report, funding for fintech startups witnessed a 16% decline compared to the previous quarter, despite an 11% quarter-over-quarter increase to $58.4 billion in overall venture funding for startups.
In the CB Insights Q1 2024 State of Venture Report, it revealed that startups in the sector raised just $7.3 billion during the three-month period, marking the lowest level since early 2017.
Despite this, there was a notable 15% increase in equity deal activity, indicating ongoing investor enthusiasm for fintech solutions, particularly in payments technology. However, the average deal size declined, with larger investments in Q1 2024 directed towards companies focusing on broader AI solutions.
During the three-month period, fintech startups received a total of 904 investments. Monzo in the United Kingdom led the pack with a $430 million funding round, marking the quarter’s largest raise, while Bilt Rewards secured the third position with a $200 million Series C round.
In the United States, companies secured the largest share of capital, totaling $3.3 billion across 393 deals, while Europe closely followed with $2.2 billion across 203 deals during the same period. The lower deal count in Europe suggests larger funding rounds on average compared to the U.S.
In a seperate report, African startups garnered $466 million in funding in the first quarter of 2024, marking a 47% decline compared to the corresponding period in 2023.
Africa’s fintech sector is the most dynamic on the continent and is expected to fuel global growth in the years ahead. However, in Q1 2024, the transport and logistics sector claimed the top spot, accounting for 32% of the total value of funds raised, while fintech followed closely behind with 23%.
