Market Observations
FinTech Market Update
- The Global FinTech industry saw a recovery in Q2 2024 after hitting a 24-quarter low in private company financing volume, which dropped to $9.3B in Q1 2024. Activity picked up toward the end of March and continued throughout Q2 2024 totaling $14.1B in financing volume representing an increase of 52% sequentially and a 32% rise year-over-year.
- The surge in financing volume in Q2 2024 was partly driven by a rise in large capital raises, with 30 $100M+ rounds announced this quarter compared to 16 in Q1 2024. Notable raises include Abounds ∼$1B Series B equity and debt raise, a $694M employee tender offer completed by Stripe, and Human Interest raising $267M through a combination of debts and series E funding.
- Financial sponsors were the clear leader for FinTech M&A during the quarter as PE buyouts made up 8 of the 10 largest deals. M&A dollar volume announced during Q2 2024 totaled $42.3B, a level higher than the average quarterly level from both 2023 (~$26B) and 2022 (~$34B). The largest deal was Webull’s proposed SPAC merger valued at $7.3B, making it the largest FinTech SPAC merger announced since 2021 and Advent’s $6.3B take-private transaction of Nuvei.
Industry Snapshot
$14.1B
Global FinTech financing volume in Q2 2024
30 rounds
$100M+ funding rounds in Q2 2024
27% increase
U.S. FinTech deal count year-over-year in Q2 2024
$42.3B
Global FinTech M&A dollar volume in Q2 2024
8 of 10
Largest Q2 2024 FinTech deals were PE buyouts
