Fintech startups worldwide secured $33.7 billion in funding last year, marking a 20% decline from the previous year. Despite this drop, the annual fall was fintech's smallest in three years, indicating a potential stabilization in the market. In contrast to the overall funding decrease, the median fintech deal size surged by 33% to reach $4 million, reflecting investors' confidence in larger deals.
Cryptocurrency-wallet provider Phantom Technologies showcased significant investor interest by raising $150 million in a recent funding round, achieving a valuation of $3 billion. Meanwhile, LemFi, a London-based financial services platform, garnered $53 million in new funding to bolster its operations. European firm Recharge also strengthened its financial position by securing a €45 million debt facility with ABN AMRO.
Plaid Inc. experienced robust growth, as evidenced by a revenue increase of over 25% last year. This growth illustrates the persistent demand for fintech solutions. Index Ventures demonstrated its commitment to the fintech sector by doubling its investment in Hyperline with an additional $10 million.
Amazon's strategic acquisition of Indian startup Axio signals continued interest in the "buy now, pay later" market. This move aligns with the company's broader efforts to expand its footprint in fintech services. In an organizational update, Synctera appointed Matias Pino as its first Chief Financial Officer, while Barclays' Rise announced it would cease operations in 2025.
Not all fintech news was positive, as Bench, an accounting startup, filed for bankruptcy in Canada, reporting $2.8 million in cash against liabilities amounting to $65.4 million. In contrast, eToro reportedly filed confidentially for a U.S. IPO that could potentially value the trading platform at over $5 billion.
According to CB Insights, the fintech sector witnessed an 11% increase in funding during the fourth quarter of 2024 compared to the third quarter, signaling renewed investor optimism. Distributed Technologies Research (DTR), a Switzerland-based startup, continues to innovate by attempting to bridge traditional banking with blockchain technology.
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