Fintech investment fell sharply in 2024, with global funding reaching $95.6 billion across 4,639 deals, marking the lowest levels in seven years. Economic instability, geopolitical tensions, and election-year uncertainty contributed to investor caution, particularly in mergers, acquisitions, and private equity. The second half of 2024 was notably quieter than the first, with investment dropping from $51.7 billion to $43.9 billion. While overall figures declined, late-year activity showed some signs of recovery. Between Q3 and Q4, M&A deal value nearly doubled, and venture capital investment rose by $1.5 billion. The Americas led regional funding at $31 billion, featuring the only billion-dollar deals, while EMEA and ASPAC recorded $7.3 billion and $5.5 billion, respectively. Payments remained the strongest subsector, drawing $31 billion in investment.
Investor sentiment appeared to shift slightly in the final quarter of the year, with a cautious optimism emerging. Notable trends included rising consolidation in payments, more secondary transactions to unlock liquidity, and increased divestitures. In 2025, expectations for a rebound are growing, supported by declining interest rates and a more stable policy outlook. Founders and executives are now weighing strategies such as bootstrapping versus external funding to position their companies for growth while managing ongoing risks.
