Key US FinTech investment stats in Q2 2024:
- US FinTech deal activity halved in Q2 from the opening quarter of the year
- The average deal size in the US FinTech market increased to $23.8m indicating a more selective and risk averse approach by investors
- Cyera, a leader in the data security space raised one of the largest deals for the quarter in the US with a Series C funding round of $300m
In Q2 2024, the US FinTech sector saw a significant decline in both deal activity and funding. Only 390 deals were recorded during the second quarter, marking a 67% decrease compared to the 1,184 deals completed in Q2 2023. Funding also dropped sharply, with US FinTech companies raising just $9.3bn in Q2 2024, reflecting a 62% decline from the $24.2bn raised in the same quarter last year. Compared to Q1 2024, which saw 792 deals and $20.8bn in funding, Q2 represents a 51% drop-in deal activity and a 55% decline in total funding.
The average deal value in Q2 2024 was $23.8m, slightly up from $23.2m in Q1 2024, and higher than the $20.4m average in Q2 2023, indicating a 17% year-on-year increase. This rise in average deal value suggests that while the overall number of deals and total funding have fallen significantly, investors are focusing on fewer, larger investments. This shift likely reflects a strategic preference for backing more mature FinTech companies as the market becomes more risk-averse amidst ongoing economic challenges.
Cyera, a leader in data security and the operating system for enterprises’ data security and lifecycle programs, has raised $300m in a Series C funding round, one of the largest FinTech rounds in the U.S. for Q2 2024. Led by Coatue and joined by Spark Capital, Georgian, and AT&T Ventures, along with existing investors Sequoia, Accel, Redpoint, and Cyberstarts, this investment values the company at $1.4bn. Founded in 2021 by Yotam Segev and Tamar Bar-Ilan, Cyera has now raised a total of $460m. Its pioneering, agentless data security platform uses AI and machine learning to discover, classify, assess, and protect data across clouds, SaaS, and on-prem environments, positioning Cyera as a key player in safeguarding enterprises’ most critical asset—data. The company’s platform is built on advanced AI, machine learning, and cloud computing technologies, which power its data classification engine. This allows Cyera to quickly and accurately analyse vast amounts of data, helping organisations understand where their data is, who has access to it, and its importance to the business. This is crucial for preventing data breaches, managing compliance, and improving security postures.
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