Global FinTech investment stats in Q1 2025:
- Global Fintech deal activity halved QoQ in Q1
- Average deal value increased to $25.6m as investors focused on higher value rounds
- ReliaQuest, a leader in AI-powered security operations, secured one of the top global FinTech deals of the quarter with a funding round exceeding $500m
Global FinTech deal activity halved QoQ in Q1
In Q1 2025, the global FinTech sector saw a sharp decline in both deal activity and funding compared to the same quarter last year.
Only 845 deals were recorded in Q1 2025, representing a 54% drop from the 1,838 funding rounds completed in Q1 2024.
Funding also saw a substantial decline, with FinTech firms raising $21.6bn in Q1 2025, marking a 38% decrease from the $34.9bn raised in Q1 2024.
If this trend continues, the projected total for deal activity in 2025 would be 3,380 deals, a 23% decrease from the 4,401 deals completed in 2024.
Similarly, total funding for 2025 is projected to reach $86.4bn, reflecting a 4% drop from the $89.7bn raised in 2024.
Average deal value increased to $25.6m as investors focused on higher value rounds
The average deal value in Q1 2025 stood at $25.6m, a significant increase from the $19m average in Q1 2024, marking a 35% rise.
This growth in average deal size suggests that while deal volumes have fallen, investors are focusing their capital on fewer but higher-value investments.
This trend mirrors the cautious investment environment seen in other sectors, where investors are prioritising established players and companies with strong growth potential amid economic uncertainty.
As the sector navigates this downturn, FinTech firms may need to adapt by focusing on profitability and operational efficiency to secure funding in an incrFTV Capitaleasingly selective market.
ReliaQuest, a leader in AI-powered security operations, secured one of the top global FinTech deals of the quarter with a funding round exceeding $500m
The round was led by EQT, KKR, and , bringing its valuation to $3.4bn.
The investment will accelerate the company’s innovation in Agentic AI-driven cybersecurity automation and expand its international footprint.
ReliaQuest’s GreyMatter platform integrates with over 200 cybersecurity tools, leveraging AI and automation to enhance regulatory compliance, threat detection, and incident response.
In an era where cyberattacks are evolving rapidly, GreyMatter enables enterprises to contain threats in under five minutes, reducing security teams’ manual workload and improving efficiency.
With over 1,000 customers globally, the platform ensures businesses meet stringent regulatory requirements while optimising their cybersecurity operations.
This latest investment comes amid significant growth, with the company surpassing $300 m in Annual Recurring Revenue and maintaining a 30% year-over-year growth rate.
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