There were nearly 500 fintech financing and M&A deals in the first quarter of 2024, with insurtech, crypto, and blockchain emerging as prominent sectors, according to data from Royal Park Partners (RPP).
Despite the closure of several underfunded fintech startups, the sector appears generally robust, demonstrating continued resilience and growth in the early months of the year.
The quarter recorded 248 fintech financing deals, although the total value dropped from $14.1 billion in Q4 2023 to $7.8 billion, reflecting ongoing investor caution amid persistent inflation and geopolitical uncertainties.
Insurtech stocks experienced a remarkable 61% increase in deal value compared to the previous quarter, significantly surpassing other verticals, such as payments (+5%) and capital markets/wealth management technology (+4%).
Crypto accounted for approximately 25% of all financing rounds in Q1, while banking and lending sectors attracted considerable investment, highlighted by substantial funding for companies like Monzo ($430 million), Svatantra ($230 million), and SK Finance ($160 million).
M&A activity saw a total of 240 deals, dominated by the $35.3 billion agreement between Capital One and Discover, pushing the total value of M&A and financing deals to $70 billion.