Key US FinTech investment stats in Q1 – Q3 2025:
- US FinTech investment dropped by 7% YoY
- At current investment pace, deal funding is projected to decline by a 6% in 2025
- Deals over $100m dropped by 8% as investors grew more selective
- Cyera, a FinTech specialising in AI-driven data security, secured one of the biggest US FinTech deals of the first three quarters with a $540m Series E funding round
US FinTech investment dropped by 7% YoY
Across the first three quarters of 2025, the US FinTech market saw a notable contraction in deal activity alongside a moderate decline in total funding compared with the same period in 2024.
Deal volume fell to 1,230, marking a 21% drop from the 1,557 deals completed during the first three quarters of 2024.
Total funding also slipped to $35.9bn, a 7% decline from the $38.7bn raised over the same period last year.
Despite this overall slowdown, the average deal size increased from $24.8m in the first three quarters of 2024 to $29.2m in the same period of 2025, indicating that capital is becoming more concentrated in higher-value transactions even as the number of deals decreases.
At current investment pace, deal funding is projected to reduce by 6% in 2025
If activity from the first three quarters of 2025 were projected across the full year, total 2025 funding would reach $47.9bn from an estimated 1,640 deals.
This would represent a 6% decline in funding from the $51bn raised in 2024 and a 12% drop in deal volume from the 1,868 deals completed last year.
Under this projection, the average deal size for 2025 would remain elevated relative to 2024.
Funding patterns by deal size further highlight this shift.
Deals over $100m dropped by 8% as investors grew more selective
In the first nine months of 2025, deals under $100m accounted for $15.2bn, a 5% decrease from the $16.1bn recorded in the equivalent period of 2024.
Meanwhile, deals worth $100m or more totalled $20.7bn, down 8% from the $22.6bn seen a year earlier.
Based on the 2025 projection method, full-year funding for deals under $100m would reach around $20.3bn, slightly above the $19.2bn recorded in 2024.
Conversely, funding from deals above $100m would total an estimated $27.6bn, representing a 13% decline from the $31.8bn raised in 2024.
These figures illustrate a market in which smaller deal activity remains comparatively resilient, while large-scale investment rounds have softened, pointing to a recalibration of investor appetite amid evolving macroeconomic and regulatory conditions.
Cyera, a FinTech specialising in AI-driven data security, secured one of the biggest FinTech deals of the quarter with a $540m Series E funding round
The funding round was led by Georgian, Greenoaks, and Lightspeed Venture Partners.
Focused on enabling enterprises to securely adopt generative AI and large language models, Cyera’s platform allows organisations to locate, classify, and protect sensitive data across their ecosystems.
The company’s total funding now exceeds $1.3bn, doubling its valuation to $6bn less than four years after launch.
The fresh capital will be used to enhance Cyera’s product suite, drive strategic acquisitions, and expand its global presence amid rising demand for secure AI deployment.
With a 4.5x YoY increase in its Fortune 500 customer base, a recent acquisition of Trail Security to launch Omni DLP, and operations now spanning 10 countries with nearly 800 employees, Cyera is positioning itself at the forefront of responsible, enterprise-grade AI adoption.
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