Value of investment in fintech globally 2014-2024, by investment type
In 2023, mergers and acquisitions (M&A) dominated fintech investments globally, with a total funding value of approximately 58.8 billion U.S. dollars, making it the leading type of investment in the sector. Venture capital followed closely, with 49.7 billion U.S. dollars invested in fintech companies. Early 2024 data indicates that M&A will likely continue to be the dominant investment type, potentially exceeding the 2023 figures. In contrast, both venture capital and private equity investments are projected to decline further if current trends persist throughout the second half of 2024.
Regional disparities in fintech funding
While the Americas continue to lead in fintech investments, attracting 78.5 billion U.S. dollars in 2023, other regions have experienced more severe declines. The EMEA region saw its investment halved to 27 billion U.S. dollars, while the Asia-Pacific region suffered the most significant drop. These regional disparities highlight the uneven distribution of fintech funding globally and suggest a concentration of investment activity in the Americas.
Evolving investment landscape
Despite the overall decline in fintech investments, certain segments have shown resilience and even growth. Insurtech and ESG/greentech bucked the downward trend, attracting more investment in 2023 compared to the previous year. The payments segment, traditionally the largest recipient of fintech funding, experienced a sharp decrease but still led with 20.7 billion U.S. dollars in investments. This shift in focus indicates changing priorities within the fintech industry, with investors showing increased interest in sustainable and insurance-related technologies.
