Key Australian FinTech investment stats in Q2 2024:
- Australian FinTech funding in the second quarter dropped by 73% YoY
- Average deal size dropped from $42.7m to $29.7m as investors grew cautious
- Sydney based Betashares, secured the largest deal in Australia for Q2 2024 with a funding round of $198m
In Q2 2024, the Australian FinTech sector experienced a notable drop in both deal activity and funding. Only 16 funding rounds were completed in Q2 2024, marking a staggering drop of 62% compared to the 42 deals closed during the same period last year. Funding also saw a significant drop, with FinTech companies raising just $475m in Q2 2024, a 73% decrease from the $6.9bn raised in Q2 2023. If the deal activity trend continues at the same rate, the projected total for 2024 would be 68 deals, which would be a 60% drop from last year’s total of 169.
The average deal value in Q2 2024 was approximately $29.7m, reflecting a 30% decrease compared to the $42.7m in H1 2023. This decline in average deal value suggests that not only has the number of deals significantly decreased, but the size of the investments has also shrunk, indicating a more cautious approach by investors within the Australian FinTech sector.
Betashares, a leading Australian financial services company known for its investing platform Betashares Direct and range of exchange-traded funds (ETFs), has secured the largest deal for an Australian fintech in Q2 2024 with a $198mn investment from Temasek, a global investment firm headquartered in Singapore. This capital injection follows a period of rapid expansion for Betashares, which has managed over $25bn on behalf of more than a million investors, financial advisers, and institutions. The investment from Temasek, which will see the firm become a minority shareholder alongside TA Associates and Betashares’ staff, underscores Betashares’ long-term ambition to become a premier independent financial services provider. The company continues to innovate with initiatives like Betashares Direct, a retail investment platform designed to assist self-directed investors in building long-term wealth. Betashares remains committed to transparency, cost-effectiveness, and simplicity as it expands its market presence and offerings, aiming to create long-term value for customers, partners, and shareholders alike.
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