Key US FinTech investment stats in 2024:
- US FinTech funding dropped by 37% YoY in 2024
- Average deal value increased to $27.3m as investors focused on larger deals
- Kiteworks, a secure content company specialising in protected data sharing across communication channels, secured a $456m funding round making it one of the biggest US Fintech deals during the year
US FinTech funding dropped by 37% YoY in 2024
In 2024, the US FinTech sector experienced significant declines in both deal activity and total funding compared to the previous year.
A total of 1,868 deals were recorded in 2024, marking a sharp 56% decrease from the 4,237 deals completed in 2023.
This decline reflects a cautious investment climate, with investors pulling back amid economic uncertainty and a stricter regulatory environment.
Total funding in 2024 reached $51.0bn, representing a 37% decline from the $80.4bn raised in 2023.
This marks a substantial reduction in capital inflows, as investors appear to be prioritising select high-growth opportunities over broad-based investments.
The funding decline is even more pronounced when compared to 2020 levels, when the sector secured $92.1bn, indicating a broader trend of contraction in the FinTech funding landscape.
Average deal value increased to $27.3m as investors focused on larger deals
The average deal value in 2024 was $27.3m, an 18% increase from the $19m average in 2023 and a 65% jump from the $17.5m average in 2020.
This rise in average deal size suggests that while overall investment levels have dropped, funding is becoming more concentrated in fewer, larger deals.
Investors are demonstrating increased selectivity, favouring established players with clear growth potential rather than spreading capital across a high volume of smaller startups.
Kiteworks, a secure content company specialising in protected data sharing across communication channels, secured a $456m funding round making it one of the biggest US Fintech deals during the year
The $456m growth equity round was led by Insight Partners and Sixth Street.
The California-based firm described this as a “partial liquidity event,” allowing some investors to cash out, while still representing a minority investment that values Kiteworks at over $1bn.
Founded in 1999 and formerly known as Accellion, Kiteworks has now raised a total of $592m, following a prior $120m round in 2020 led by Bregal Sagemount.
This latest funding will support Kiteworks in advancing its secure data exchange platform, facilitating trusted communication for clients managing sensitive data.
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