Key global FinTech investment stats in Q2 2024:
- Global FinTech deal activity reduced by two-thirds in Q2 2024 YoY
- Average deal size increased to $20m compared to the previous quarter as investors focused on larger transactions
- Wiz secured one of the largest FinTech deals globally for Q2 with a $1bn Series E funding round
In Q2 2024, the global FinTech sector experienced a noteworthy decline in both deal activity and funding. Only 916 deals were recorded during the second quarter, marking a 66% decrease compared to the 2,684 deals completed in Q2 2023. Investments also saw a significant drop, with FinTech companies raising just $18.3bn in Q2 2024, reflecting a 63% decline from the $49.4bn raised in the same quarter last year. If this trend continues, the projected total for deal activity in 2024 would be around 2,754 deals, indicating a 36% decrease from the 4,311 deals completed in 2023.
The average deal value in Q2 2024 was approximately $20m, which is an increase from $19m in Q1 2024, and higher than the $18.4m average in Q2 2023. The increase in average deal value compared to the last quarter suggests that while the number of deals is dramatically declining, investors are focusing on larger transactions, possibly indicating a strategic preference for investing in more established companies with proven business models.
Wiz, a cloud security company, secured the one of the largest FinTech deals of the quarter by securing $1bn in a Series E funding round, propelling its valuation to a staggering $12bn. This significant milestone reflects the growing demand for robust cloud security solutions and Wiz’s rapid market capture in just four years. The funding round, co-led by Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, positions Wiz as one of the most highly valued startups in cybersecurity today. The round, announced as the industry’s RSA Conference commenced in San Francisco, signals renewed investor interest in the cybersecurity space, following a strong funding quarter for cyber startups and the successful IPO of Microsoft-backed data security firm Rubrik. Additional participation in Wiz’s latest round came from Greylock, Wellington Management, and existing investors Cyberstarts, Greenoaks, Howard Schultz, Index Ventures, Salesforce Ventures, and Sequoia Capital.
Keep up with all the latest FinTech research here
Copyright © 2024 FinTech Global
