The most recent CB Insights research indicates that fintech financing is peaking.

Only $7.3 billion was invested globally in the fintech industry in the first three months of this year, according to the most recent State of Venture report from US-based data analytics company CB Insights. This is a new four-year low in the sector's investment.

Travon Stracke

April 09, 2024

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According to the research, the industry is finding it difficult to draw in the same amount of funding as it did in Q42021, when a record $38.9 billion was raised in 1,680 investment rounds.

However, the most current data indicates that market activity is declining, with just 904 deals executed in Q1 2024—the fourth-lowest number since the epidemic started—with an average sale size of $11.1 million.

Fintech companies located in the United States accounted for the largest portion of this capital this quarter, with $3.3 billion distributed among 393 agreements. The European fintech community, which closed 203 acquisitions worth $2.2 billion, trailed them less closely, with Asia taking third place with 210 deals worth $1 billion.

During this time, among of the biggest transactions were the $430 million fundraising round lead by Alphabet for UK-based Monzo in March, the $200 million raised for Bilt Rewards, and the $150 million raised by Kore.ai, all of which were closed by US-based businesses in January.

The results of this regional study indicate that, with just under $700 million raised, just 12% of the entire money poured into fintech this year has gone to the rest of the world, which includes Latin America, Africa, Oceania, Canada, and some other minor areas.

Among the most active buyers this year are the US asset management company Polychain Capital, the UK's Cogitent Ventures, and the British Virgin Islands-based cryptocurrency venture fund Big Brain Holdings, who together have made nine fresh purchases so far this quarter.

But OKX Ventures, the investment portfolio of web3 technology business and cryptocurrency exchange OKX, has closed 21 agreements this year alone, easily surpassing their deal-making. OKX Ventures was one of these, taking part in HashKey's $100 million Series A fundraising round in January.