Pulse of Fintech H1 2025 (KPMG Switzerland)

Summary

• Global fintech investment reached $44.7 billion across 2,216 deals in H1’25, down from $54.2 billion across 2,376 deals in H2’24.p.2
• Global M&A deal value dropped to $19.9 billion in H1’25 from $26.7 billion in H2’24, while PE growth investment fell from $4.4 billion to $1.4 billion.p.2
• Digital assets and currencies led all fintech subsectors, bringing in $8.4 billion in global funding across 586 deals during H1’25.p.24
• AI-focused fintech attracted $7.2 billion in global funding in H1’25, coming close to the $8.9 billion raised during all of 2024.p.2
• Funding in the payments sector dropped significantly to $4.6 billion in H1’25, compared to $30.8 billion during full-year 2024.p.16

Key insights

1. Q2’25 marked an eight-quarter low in global fintech deal value at $18.7 billion and a 31-quarter low in deal count with 972 deals.p.2
2. Global VC funding in fintech proved resilient, slightly increasing from $23 billion in H2’24 to $23.4 billion in H1’25.p.2
3. The EMEA region secured $13.7 billion in fintech funding in H1’25, headlined by the $3.2 billion acquisition of UK-based Preqin.p.2
4. Insurtech global funding surged to $4.8 billion across 141 deals in H1’25, surpassing the $3.0 billion total raised in all of 2024.p.19
5. Regtech deal count reached 190 deals in H1’25, putting volume on track for a three-year high despite total value falling to $2.1 billion.p.7
6. Pure-play cybersecurity fintech funding fell dramatically to $120 million across 26 deals in H1’25, down from $1.0 billion in 2024.p.22