Global funding in the fintech sector has declined to its lowest level since 2017, according to newly published research.
The Q1 2024 State of Venture Report by CB Insights revealed that investment in fintechs dropped by 16% in the first quarter of the year. In stark contrast to the opening quarters of the previous two years, 2023 saw $16 billion invested in 1,271 fintech startups, while Q1 2022 recorded $32.9 billion invested in 2,026 fintech startups.
Notably, the $7.3 billion raised by startups in Q1 2024 marks the lowest amount since early 2017. The most significant funding round of the quarter was Monzo’s $430 million raise, followed by Flexport, which secured $260 million for trade finance and cargo insurance.
US-based companies attracted the majority of funding, raising $3.3 billion across 393 deals, compared to $2.2 billion from 203 deals for European firms. The report also highlighted a 15% increase in equity deal-making during the first quarter, although the average deal size decreased, resulting in a total of 904 deals.
Additionally, 19 new unicorns emerged across the US, Asia, and Europe, a slight decrease from 23 in the previous quarter.