Key Chinese FinTech investment stats in H1 2024:
- Chinese investments dropped by 77% in YoY comparison
- Average deal value for the first half dropped to $24.7m as investors take the selective approach
- Chaitin Technology secured the largest deal of H1 2024 in China by completing a $141m funding round
In H1 2024, the Chinese FinTech sector experienced a decline in both deals and funding. Only 85 deals were completed in the first half of the year, marking a 49% decrease compared to the 168 deals recorded in H1 2023. Funding also saw a steep drop, with FinTech companies raising just $2.1bn in H1 2024, a 77% decrease from the $9.2bn raised in H1 2023. If this trend continues, the projected total for 2024 would be 170 deals, a 37% decrease from last year’s total of 326.
The average deal value in H1 2024 was approximately $24.7m, reflecting a decrease compared to the $54.8m in H1 2023. This decline in average deal value suggests that not only has the number of deals decreased, but the size of the investments has also shrunk significantly, possibly due to a more cautious approach by investors amid ongoing global economic uncertainties and domestic market challenges in China. These factors have likely contributed to a more selective investment approach, focusing on smaller, less risky ventures, and reflecting the broader hesitancy within the FinTech market in China.
Chaitin Technology, a cybersecurity company in China, secured the largest deal in the region for the first half of the year with a funding round of $141m. This substantial investment propels Chaitin Technology into a new phase of independent development, reinforcing its leadership in product categories such as web application firewalls, traffic detection, and host security. The company has already provided robust security solutions to over 3,000 users across critical industries like finance, communications, and government, with a service network spanning more than 30 provinces and cities and an ecosystem of over 2,000 partners. Chaitin Technology plans to leverage its advanced defence capabilities to upgrade its product offerings and deploy cutting-edge technologies, including AI-driven security models, to enhance intelligent security operations. This new capital will enable the company to continue its heavy investment in innovation and market expansion, solidifying its position as an emerging leader in the cybersecurity sector.
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