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- Investment in Fintech Has Dropped to Lowest Level Since Early 2020
Investment in Fintech Has Dropped to Lowest Level Since Early 2020
Plus: Tally shuts down after failing to raise capital
Alejandro Vivanco
August 16, 2024
🍿 Quick Snack
KPMG recently did a great job analyzing fintech funding around the world for the first half of 2024.
If you don’t feel like reading the full report, I’ve summarized the most important takeaways on this newsletter. Plus a few more things!
📉 In the first half of 2024, we’ve experienced the lowest 6 months of fintech investment since the first half of 2020.
🌎 Globally, there were only five big fintech deals worth over $1 billion in the first half of 2024, and all of them were buyouts.
😥 Less than two years after raising an $80 million Series D, Tally has shut down after not being able to raise more money.
🍟 Extra Fries: Revolut secures $45B valuation ahead of possible IPO
🖤 +1 M&A Transaction
💸 +1 Funding Round
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🍔 The Full Meal
Fintech Investment Drops to Lowest Levels Since Early 2020
Total global investment in fintech declined by 17% between H2’23 and H1’24 (from $62.3 billion to $51.9 billion). This is the lowest six months of fintech investment since H1’20.
H2’23 | H1’24 | % Change | |
|---|---|---|---|
Investment | $62.3 billion | $51.9 billion | -16.7% |
# of Deals | 2,287 | 2,255 | -1.4% |
Note: these statistics encompass all VC, PE and M&A deals
Investment decreased in all parts of the world, with Europe, the Middle East, and Africa seeing the biggest drop between the second half of 2023 and the first half of 2024.
H2’23 | H1’24 | % Change | |
|---|---|---|---|
Americas | $38.5B | $36B | -6.4% |
EMEA | $19.1B | $11.4B | -40.3% |
Asia Pacific | $4.6B | $3.7B | -19.6% |
Top 10 Deals by Region
Americas
Highlights |
|---|
🏆 4 out of 5 deals over $1B took place in North America (Worldpay, Nuvei, EngageSmart, and Plusgrade) |
🥈 The US had the second largest fintech VC deal of H1’24 — Clear Street ($685M) |
EMEA
Highlights |
|---|
🥇 The UK had the largest fintech VC deal of H1’24 — Abound ($999M) |
🥉 The UK also had the 3rd biggest deal over $1B globally (IRIS Software group, tied with EngageSmart in the US) |
Asia Pacific
Highlights |
|---|
📊 Overall, Asia Pacific saw much smaller deal sizes compared to Americas and EMEA |
🇨🇳 China had the fifth largest fintech VC deal of H1’24 — Yi’an Enterprise ($280.9M) |
Funding Activity by Sector
Next week, I will cover funding activity by vertical in detail, but here’s a short preview of what you can expect:
💳 Payments attracted the largest share of fintech funding globally ($21.4 billion in H1’24).
📝 Regtech was the only fintech vertical to see an increase in investment in the first half of 2024, plus it already surpassed it’s 2023 total with $5.3B.
🤖 Non-surprisingly, AI has become one of the hottest areas of interest among fintech investors, particularly in the US.
Fintech Startup Tally Shuts Down
Source: Tally Website
Less than two years after raising an $80 million Series D, Tally has made the difficult decision to close its doors after not being able to raise more money.
“After nearly nine years of helping people manage and pay off their credit card debt, we have made the difficult and sad decision to shut down Tally. This was not the outcome we had hoped for, but after exploring all options, we were unable to secure the necessary funding to continue our operations.”
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🍟 Extra Fries
🖤 M&A Transactions
Prytek acquires TipRanks at $200 million valuation (link)
💸 Funding Rounds
Mexican fintech startup Stori raised $212 million in debt and equity (link)
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See you next week!
-Alejandro