Key US WealthTech investment stats in 2024:
- US WealthTech deal activity plummeted by 70% in 2024 YoY
- California firms dominated the US WealthTech market as they secured 28% of the deals from the region
- Nassau, a digitally-driven provider of fixed annuities and asset management solutions, secured one of the largest US WealthTech deals of the year with a $200m minority equity investment from Golub Capital
US WealthTech deal activity plummeted by 70% in 2024 YoY
The US WealthTech market saw a significant contraction in both funding and deal activity in 2024 compared to previous years, reflecting ongoing challenges within the sector.
Total funding dropped to $8.2bn in 2024, a steep 65% decrease from $23.1bn in 2023 and a more pronounced 72% decline from $29.0bn in 2020.
Similarly, deal activity fell sharply, with only 572 deals recorded in 2024, down 70% from 1,937 deals in 2023 and 79% from 2,668 deals in 2020.
These declines emphasise the sector’s struggle to maintain investor interest amid broader market challenges and a retreat from the peak levels seen in previous years.
California firms dominated the US WealthTech market as they secured 28% of the deals from the region
California maintained its dominance as the leading state for US WealthTech deal activity in 2024, completing 158 deals (28% share).
However, this represents a 71% drop from the 550 deals recorded in 2023. New York retained the second spot with 96 deals (17% share), down 69% from 309 deals in 2023.
Texas remained in third place with 39 deals (7% share), representing a 72% decline from the 138 deals recorded in 2023.
These figures underscore California’s continued prominence in the sector, while New York and Texas experienced declines that mirror the overall downward trend in the US WealthTech market.
Nassau, a digitally-driven provider of fixed annuities and asset management solutions, secured one of the largest US WealthTech deals of the year with a $200m minority equity investment from Golub Capital
Leveraging its advanced digital capabilities, Nassau delivers customizable retirement solutions and innovative investment strategies that include public and private debt, CLOs, and alternatives.
This strategic partnership not only strengthens Nassau’s balance sheet but also provides access to Golub’s middle-market direct lending strategies, enhancing Nassau’s ability to offer tailored, capital-efficient solutions.
With $24bn in assets under management, Nassau is well-positioned to continue driving growth in the WealthTech space, delivering cutting-edge financial products to insurers and third-party clients alike.
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