The decline in fintech investment continues into the first half of 2024, but signs suggest it may be stabilizing, according to new data from Innovate Finance.
In the first half of 2024, total global capital invested in fintech reached $15.9 billion, marking a 19% decrease from the $19.5 billion seen in the second half of 2023. This investment was distributed across 1,566 deals, down from 1,661 in the prior period, with a noticeable shift toward early-stage investments. The average deal size was recorded at $10.2 million, indicating a trend back to earlier stage funding.
The United States led the way in fintech investments, attracting $7.3 billion across 599 deals, while the United Kingdom followed in second place with $2 billion from 183 deals. India contributed $837 million across 78 deals, with China and Germany securing $589 million in 30 deals and $462 million in 37 deals, respectively.
Although the UK saw a 37% decrease in investment compared to the previous six months, it still outperformed all other European countries combined, capturing a 12.7% share of the global market. Notably, investment levels in the UK over the past year remained higher than those seen before the Covid-19 pandemic in 2018 and 2019.
Among the top global markets, the United States, United Kingdom, and India continue to dominate, while France has dropped out of the top 10.
Janine Hirt, CEO of Innovate Finance, commented, “We believe that the decline in investment since the peak in 2022 may have leveled off; however, the market has yet to demonstrate a turnaround, which may not occur until 2025. The latest figures highlight the intensifying global competition for fintech investment, underscoring the urgent need for the UK to enhance its policy and regulatory framework to maintain its competitive edge in fintech and broader financial services. With political uncertainty impacting investments in other regions, the UK has a significant opportunity to advance its position.”