Global Fintech investment fell 46% in the first half of 2024 to $53 billion, but the US still asserted its dominance with five of the 10 largest deals, accounting for nearly half of the total value.
The global Fintech industry is experiencing a significant slowdown in the first half of 2024, as evidenced by a sharp decline in investment and deal volume. According to FinTech Global’s latest Fintech market research, total investment in the sector fell 46% year-on-year to $53 billion. This figure is also 20% lower than the second half of 2023 ($66 billion).
The decline is clearly reflected in the number of deals completed. In the first 6 months of 2024, there were only 2,754 successful capital raising deals, down 50% compared to 5,449 deals in the same period in 2023 and 35% lower than 4,216 deals in the second half of 2023.
America maintains its leading position
Despite the global Fintech market’s struggles, the US has maintained its leadership in the sector. Research shows that five of the 10 largest deals in the first half of 2024 will involve US Fintech companies. The top 10 deals also include companies from the UK, India, Singapore and Australia.
Analysts say the US’s strong startup ecosystem, abundant venture capital and supportive regulatory environment have helped it maintain its position as the world’s leading Fintech innovation hub. The top 10 Fintech deals totaled around $4 billion, with nearly $2 billion going to US companies. The two largest deals, each worth around $1 billion, were between UK FinTech startup Abound and US cybersecurity firm Wiz.
The slowdown in the Fintech market has also affected blockchain startups. Total investment in this sector reached only $5.74 billion in the first half of 2024, showing investors' caution amid the volatile cryptocurrency market.
