Key Australian FinTech investment stats in 2024:
- Australian FinTech funding dropped by 74% YoY in 2024
- Average deal value dropped to $15.6m as investors grew cautious
- Betashares, a leading financial services company known for its investing platform Betashares Direct and range of exchange-traded funds (ETFs), secured the largest deal for an Australian FinTech in 2024 with a $198m investment
Australian FinTech funding dropped by 74% YoY in 2024
In 2024, the Australian FinTech sector experienced a significant decline in both deal activity and total funding compared to the previous year, reflecting a more cautious investment landscape.
A total of 57 deals were recorded in 2024, marking a steep 66% drop from the 169 deals completed in 2023.
Funding followed a similar downward trend, with Australian FinTech firms raising $891m in 2024, representing a 74% decline from the $3.5bn secured in 2023.
This sharp reduction in capital inflows highlights the growing reluctance of investors to commit large amounts, likely due to macroeconomic uncertainties and increased scrutiny on valuations.
When compared to 2020, when the sector raised $1.6bn across 189 deals, the long-term volatility of the market becomes evident. Despite strong growth in funding between 2020 and 2023, the significant decline in 2024 indicates a recalibration in investment priorities, with capital being allocated more selectively.
Average deal value dropped to $15.6m as investors grew cautious
The average deal value in 2024 stood at $15.6m, down from the $20.8m average in 2023.
The decrease in deal size, alongside the sharp decline in deal volume, suggests that investors are exercising greater caution, favouring only the most promising opportunities while overall investment activity remains subdued.
Moving forward, Australian FinTech firms may need to focus on demonstrating sustainable growth and profitability to attract investors, as market conditions remain challenging and funding sources become more selective.
Betashares, a leading financial services company known for its investing platform Betashares Direct and range of exchange-traded funds (ETFs), secured the largest deal for an Australian FinTech in 2024 with a $198m investment
The investment was 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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