Global fintech investment fell by 19% in H1 2024, according to new Innovate Finance report
Global fintech investment fell by 19% in H1 2024 compared to H2 2023 amid an “economic slowdown”, according to the latest report on investment trends by Innovate Finance, a UK-based independent industry body.
Innovate Finance reveals the UK landed 183 deals in H1 2024
The report states that in the first half of 2024, the total capital invested in fintechs worldwide amounted to $15.9 billion, compared to $19.5 billion in the second half of 2023.
Innovate Finance states that this is evidence that global fintech investments have reached a “cyclical low point from their 2022 peak, in parallel with the general global VC market”.
In addition, the total number of funding rounds completed was also down – with H1 2024 seeing 1,566 deals compared to the 1,661 deals in H2 2023.
Moreover, Innovate Finance finds there has been a noticeable shift towards earlier stage deals (seed to Series B rounds), with the average deal being $10.2 million.
UK receives second most fintech investment in H1 2024
In H1 2024, the UK fintech community secured $2 billion in funding spread across 183 deals, which is second only to the US, which secured $7.3 billion across 599 deals.
Despite these results meaning that the UK has received more investment than all other European countries combined, accounting for 12.7% of the global fintech market, it is still a 37% decrease from the previous six months.
The report also highlights a decline in financing for female-led fintechs in the UK, finding that of the $2 billion raised, only 7% of which (around $136 million) was invested in female-led companies, down from the 10% recorded over 2023.
Commenting on the fintech landscape and the opportunity for the UK going forward, Janine Hirt, CEO of Innovate Finance, says: “We believe the decline in investment since the 2022 peak may have bottomed out. However, the market has not yet shown that it has turned and this may not start until 2025. When it does turn, the UK’s challenge is to make sure we can maintain and grow our market position, which is not guaranteed.”
“The latest investment figures show increasing global competition for fintech investment, demonstrating the ever greater need for the UK policy and regulatory environment to take action to maintain our lead in fintech and in financial services more widely. Moreover, with political uncertainty affecting investment elsewhere in the world, the UK has a window of opportunity to forge ahead.”
