Pulse of Fintech H1 2024 (KPMG Switzerland)

Summary

• Total global fintech investment across VC, PE, and M&A fell from $62.3 billion across 2,287 deals in H2’23 to $51.8 billion across 2,254 deals in H1’24.p.5
• The EMEA region experienced the sharpest decline in fintech investment, falling from $19.1 billion in H2’23 to $11.4 billion in H1’24.p.5
• Payments remained the largest sector for global fintech funding, drawing $21.4 billion in H1’24.p.2
• Regtech was the only major subsector to see investment increase in H1’24, attracting $5.3 billion.p.2
• Insurtech funding dropped significantly to $1.6 billion in H1’24 from $8.2 billion in 2023.p.16
• Crypto and blockchain investment stabilized at $3.2 billion across 677 completed deals in H1’24.p.24
• Global PE growth investment in fintech fell sharply to $979 million in H1’24 compared to $9.6 billion in 2023.p.5

Key insights

1. Only five $1 billion+ deals occurred in the global fintech space during H1’24, all of which were buyouts.p.2
2. The Americas accounted for four of the five $1 billion+ deals, led by Worldpay ($12.5 billion) and Nuvei ($6.3 billion).p.2
3. The UK recorded the fifth $1 billion+ deal with IRIS Software Group ($4 billion) and the largest VC deal in H1’24 with Abound ($999 million).p.2
4. AI-focused fintechs drew strong investor interest, particularly in the US with acquisitions of Corvus ($427 million) and Spiff ($419 million).p.6
5. Global fintech M&A investment reached $32.6 billion in H1’24, putting it ahead of the pace seen in 2023 when total M&A reached $58.8 billion.p.5
6. Fintech funding in ASPAC dropped from $4.6 billion in H2’23 to $3.6 billion in H1’24, even as deal volume rose from 406 to 437 deals.p.44
7. Global investment in cybersecurity fintech reached $640 million across 40 deals in H1’24.p.20