Market Observations
FinTech Market Update
- Through Q3 ’24, global FinTech M&A has reached $165.3 billion across 1,039 deals. FinTech financing has reached $37.2 billion across 2,919 deals. The U.S. is leading quarterly financing and deal count in Q3 with $3.5 billion across 294 deals.
- Global FinTech financing reached $7.3 billion in Q3 ‘24, reflecting a 25% quarter-over-quarter (QoQ) decline. However, this drop is less significant when contextualized. The previous quarter’s financing was bolstered by two major deals, a $1.3 billion infusion into Stripe and AlphaSense. When excluding these rounds, the actual decline in financing from Q2 ‘24 to Q3 ‘24 narrows to 13%, illustrating a more moderate contraction in the FinTech financing landscape.
- Wealth Tech funding experienced a 67% increase, rising from $0.6 billion in Q2 ‘24 to $1 billion in Q3 ‘24, marking the largest growth among FinTech sectors. This surge was driven by two notable deals: a $242 million Series F round for Human Interest, a turnkey retirement plan provider, and a $200 million Series B round for Earned Wealth, a digital wealth manager specializing in services for medical professionals.
- The average global deal size in the FinTech market through Q3 ‘24 was $12.7 million, which is relatively stable compared to the $13.2 million average deal size for CY ‘23. Despite deal volume declining, this consistency suggests that dealmakers are concentrating on fewer but higher-value opportunities, reflecting a strategic shift toward larger, more targeted investments.
Industry Snapshot
$7.3B Global FinTech financing down 25% QoQ
67% Increase in funding for Wealth Tech
$12.7M Average deal size in 2024
20% M&A deals with announced amounts were valued over $1 billion 2024 YTD
