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Global Investment in Fintech Drops 16% in Early 2024, Biggest Decrease in 7 Years

By Oluchukwu Ikemefuna

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Global Fintech Drops: Global investment in fintech declined badly in the first quarter of the year. The investment fell by a tremendous 16 percent in the first three months of 2024. This assertion was revealed in a report by CB Insights

Global Fintech Drops

According to the report, financial technology companies around the world were only able to attract $7.3 billion in the quarter. This represents a 16 percent drop from $8.7 billion attracted in the third quarter of 2024.

Global Fintech Drops

The recession represents the largest quarterly drop in fintech funding since 2017. 

Also Read: The Global Startup Awards Africa 2024 is now Accepting Applications

The report noted that “A dearth of blockbuster deals is driving the decline. In Q1 2024, there were just 12 mega-rounds, representing 26% of total funding, the lowest share since Q2 2023.” 

Global Fintech Drops: Investors Still Active in the Market

However, while fintech investment deals might have suffered a quarterly decline, the total number of deals enjoyed a 15 percent increase. This ramped up to a total of 904 deals against 724 recorded in the last quarter of 2023.

This implies that investors remain involved in the market but are focused on smaller deals.

The United States has remained a dominant player in fintech investment. Companies in the country secured $3.3 billion over 393 deals.

European fintech companies also raised $2.2 billion across 203 deals.

According to Africa: The Big Deal, African startups attracted $466 million in funding during the same period. The transport and logistics sector led the way by accounting for 32% of the total funding. Fintechs came in second, capturing 23% of the overall funding. 

Fintech Funding Downturn 2024

Amidst the slowdown in fintech funding, the decline in fintech investment reveals both challenges and opportunities to work on in the sector. 

Investors are still active in investing in groundbreaking financial solutions. This demonstrates an interest in innovation despite the funding decline.

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Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

Articles: 328

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