Diving into the dynamic world of fintech where 2024 stands out as a pivotal year. As global funding declines, Europe and Latin America stand out as exceptions, seeing their investments rise significantly. This trend highlights investors’ confidence in the potential of maturing fintech ecosystems, with a notable increase in late-stage investments. The recent CB Insights report sheds light on how these regions have managed to distinguish themselves and assert their presence on the global stage.
In 2024, Europe and Latin America stood out on the global fintech stage, attracting a notable increase in funding despite an overall decline. This growth is driven by advanced-stage investments, underscoring the maturity of fintech ecosystems in these regions and illustrating investors’ confidence according to the CB Insights report.
Fintech Funding in Europe
Fintech funding in Europe reached 7.6 billion dollars in 2024 across 814 transactions. Although the number of transactions has decreased, the value of deals increased by 4.1% compared to the previous year, marking a shift towards larger-scale operations and well-established companies.
Spectacular Surge in Latin America
Latin America recorded an impressive growth of 71.4% in funding, reaching 2.4 billion dollars, highlighting massive investments in mature fintech companies, even though the number of transactions has declined.
Decline in Global Funding
Despite the willingness to invest in Europe and Latin America, global fintech funding dropped by 20% in 2024, indicating a contraction in the global market, although the median deal size experienced a 33% increase.
Explosion of fintech funding in Europe
In 2024, Europe experienced a significant increase in fintech funding, reaching 7.6 billion dollars across 814 transactions. This progression underscores a shift towards larger transactions and focuses more on established fintech companies with solid business models and steady revenue growth. Investors are showing renewed confidence by writing larger checks for these companies that emphasize expanding their operations, entering new markets, or investing in advanced product development. For more information on this dynamic, check out the CB Insights report.
Spectacular Progression of Fintech in Latin America
In Latin America, fintech also thrived in 2024, with an impressive 71.4% increase in funding, totaling 2.4 billion dollars. This growth, like in Europe, has been driven by significant investments directed towards mature fintech companies, signaling investor confidence in these maturing markets. Among notable transactions, Uala raised 300 million dollars to expand its financial ecosystem in multiple countries. This dynamism illustrates the emerging power of fintechs in Latin America, despite a decline in the number of transactions. Discover the promising trends in this article from Please Fintech.
Global Contractions, but Emerging Hopes
The global fintech scene recorded a 20% decrease in funding, dropping from 41.9 billion in 2023 to 33.7 billion dollars in 2024. This global contraction is manifested by a decrease in the number of transactions, but a positive aspect has emerged due to the increase in average transaction size. The banking sector has been the most solicited with a 52% surge in funding, illustrated by notable transactions such as the 200 million dollars raised by Current. For an in-depth analysis of these trends, explore our source on capital deal growth CB Insights.
