Global fintech funding dropped by 16 percent in the first quarter of 2024.
This was despite an 11 percent quarter-over-quarter increase to $58.4 billion in overall venture funding for startups, according to CB Insights Q1 2024 State of Venture Report.
The firm revealed that startups in the sector raised just $7.3 billion in the period, the lowest level since early 2017. However, equity deal activity increased by 15 percent, indicating ongoing investor enthusiasm for fintech solutions, particularly payments technology.
In the period under review, fintech startups received 904 investments. Monzo in the United Kingdom led the pack with a $430 million funding round, marking the quarter’s largest raise.
Read also: Fintechs embrace USSD to expand offline offerings
CB Insights further disclosed that companies secured the largest share of capital in the United States, totaling $3.3 billion across 393 deals, while Europe closely followed with $2.2 billion across 203 deals in the same period.
According to Africa: The Big Deal, African startups received $466 million in funding in Q1 2024. The data insight firm stated that in Q1, the transport and logistics sector raised the most funding, accounting for 32 percent of the total value of funds raised. Fintechs followed closely behind with 23 percent.
