In 2024, the total investment volume in the FinTech industry amounted to $43.5 billion, a 20% drop compared to the previous year. The number of deals also decreased by 16%.
Global investments in the FinTech sector are on a downward trend for three consecutive years, as reported by Innovate Finance. The industry saw its highest funding levels in 2021, with total investments reaching $136.5 billion. This figure dropped to $92 billion in 2022, $54.2 billion in 2023, and $43.5 billion in 2024.
In 2024, the number of investment deals in FinTech also declined, totaling 6,464 compared to 7,683 in 2023. Analysts attribute this to rising interest rates, geopolitical instability, and a shift in venture capital focus, which tightened financing conditions in key markets.
The U.S. leads the way in FinTech funding, with companies attracting a total of $22 billion. The next three spots are held by:
- United Kingdom ($3.6 billion).
- India ($2.2 billion).
- Singapore ($1.4 billion).
Among European countries, aside from the U.K., the leaders in FinTech funding include:
- France ($1.1 billion);
- Germany ($900 million);
- Switzerland ($500 million);
- Netherlands ($400 million).
According to Innovate Finance, investment dynamics in the FinTech sector typically align with broader VC markets, which keep experiencing a cyclical downturn in recent years. However, 2024 saw a recovery in broader venture investments compared to 2023, and FinTech sector investments in H2 2024 slightly increased compared to H1 2024. This indicates that the global FinTech sector may be preparing for its next phase of growth.
CP Media prepared a detailed analysis of key trends in the financial technology industry for 2025.
