According to Royal Park Partners (RPP), there were nearly 500 fintech financings and M&A deals in the first quarter of 2024, with insurtech, crypto and blockchain emerging as hot areas.
The study concludes that the fintech sector is in good health and has demonstrated continued resilience and expansion in the first few months of the year.
There were 248 financing deals in the fintech space during the quarter, but their total value fell to $7.8 billion from $14.1 billion in the fourth quarter of 2023, reflecting continued investor caution amid ongoing inflation and geopolitical instability.
Insurtech stocks saw deal value increase 61% quarter-on-quarter, outperforming other industries including payments (+5%) and capital markets/wealth management technology (+4%).
Cryptocurrencies accounted for about 25% of total funding rounds in the first quarter, while banking and lending increased thanks to large funding rounds for companies such as Monzo ($430 million), Svatantra ($230 million) and SK Finance ($160 million ) also attracted significant investment.
In the M&A space, there were 240 transactions, most notably the $35.3 billion deal between Capital One and Discover, which brought the total value of M&A and financing deals to $70 billion.
