Fintech companies hit over half a trillion dollars in total funding
As one of the trending industries for VC funding in 2024, the fintech sector has seen an impressive amount of funding rounds and fresh capital since the beginning of the year. Over the past five months, fintech companies have raised over $30 billion in funding rounds, pushing the total value of investments in this market to record highs.
According to data presented by AltIndex.com, fintech companies have raised more than $550 billion in funding rounds so far.
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Over the past years, the financial services industry has attracted tens of thousands of tech companies whose services and products have transformed how people and businesses spend, invest, save, and borrow money. From cryptocurrencies and blockchain, mobile POS, and real-time payments to crowdfunding, robo advisors, and neobrokers, all parts of the fintech landscape have seen users and transaction values skyrocket.
According to Statista Market Insights, the total transaction value in the global fintech market is expected to hit $18 trillion in 2024, 12% more than last year, with almost 5.3 billion people using fintech products, 600 million more than in 2023. As the market continues growing, so does the number of VC investors willing to invest in fintech companies and their businesses.
The Crunchbase data show fintech companies and startups raised roughly $30 billion year-to-date, the same amount as in the first five months of 2023. This impressive figure has helped the cumulative funding amount in the fintech landscape to jump over $550 billion.
And while the VC funding activity in the fintech sector remains strong, it is still below the levels seen in 2021, the record year for VC investments. That year alone, fintech companies and startups raised over $121 billion in funding rounds. The following year brought nearly 30% less fresh capital, with $88.8 billion poured into the market. Statistics show that last year saw another decline, with investments falling by 17% to $73 billion. With roughly $30 billion raised in the five months of 2024, the total value of investments could remain close to that figure.
There are now over 30,000 Fintechs, Twice More than Five Years Ago
Besides a surge in the amount of fresh capital flowing through the market, the fintech sector has also seen a huge number of new companies operating in it. Since 2019, the number of fintechs has doubled and hit almost 30,000.
Statistics show North American companies account for 43% of the total, with 13,100 operating in the market. The EMEA region follows with 10,969 companies and startups and a 36% market share, while another 5886 fintechs, or 20% of the total, come from Asia and the Pacific.
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