US FinTech investment stats in Q1 2025:
- US FinTech investments halved YoY in Q1
- Average deal value dropped to $27.4m as investors grew cautious
- ReliaQuest, a leader in AI-powered security operations, secured one of the biggest US FinTech deals of the quarter with a funding round of $500m
US FinTech investments halved YoY in Q1
In Q1 2025, the US FinTech sector continued to face a contraction in funding, although deal activity showed signs of recovery compared to the previous quarter.
A total of 350 deals were recorded in Q1 2025, representing a 13% increase from the 311 deals completed in Q4 2024.
However, funding fell sharply to $9.6bn, down 22% from the $12.3bn raised in Q4 2024.
When compared YoY, Q1 2025 deal volume was down 56% from the 792 deals recorded in Q1 2024, while funding dropped by 54% from the $20.8bn raised in the same period.
These figures highlight continued investor caution in the US FinTech market, particularly when it comes to capital deployment.
Average deal value dropped to $27.4m as investors grew cautious
The average deal value in Q1 2025 stood at $27.4m, a notable decrease from the $39.5m in Q4 2024 and slightly below the $26.3m average in Q1 2024.
This reduction suggests that although the number of deals has grown QoQ, investors are committing smaller sums per deal.
This could indicate a more measured approach in response to macroeconomic pressures, with backers opting for conservative cheque sizes while still engaging with promising FinTech innovations.
The modest drop in average deal size also suggests a more even spread of capital across early and mid-stage deals, rather than concentrating heavily on large late-stage rounds.
ReliaQuest, a leader in AI-powered security operations, secured one of the biggest US FinTech deals of the quarter with a funding round of $500m
The round was led by EQT, KKR, and FTV Capital, 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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