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Crypto leads weak fintech fundraising market

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Apr 29, 2024
Data: FT Partners; Chart: Axios Visuals

Crypto was a surprising bright spot in an otherwise slow fintech fundraising market, FT Partners data shows.

Why it matters: Investors are willing to place more — albeit, smaller — bets on crypto startups after funding plunged last year.

Driving the news: Crypto startups garnered a record 300 capital raises — the highest number of deals in the quarter.

  • The median financing size for crypto deals in Q1 $3.7 million, still down significantly from the $6.2 million median deal size at the sector's height in Q2 2022.
  • Meanwhile, banking and lending startups raised the most money in the quarter, at $3.1 billion.

By the numbers: According to the FT Partners Q1 2024 FinTech Insights report, private financing to fintech startups fell to its lowest quarterly dollar volume in six years.

  • Those companies raised a total of $9.2 billion over 946 deals in the first quarter, representing a 19% year-over-year decline in venture dollars (excluding Stripe's $6.5 billion fundraise from last March).

Yes, but: The number of deals announced during the quarter increased 12% year over year and 46% sequentially.

Half of all deals in the first quarter were for $5 million or less, compared with 46% in 2023 and 35% in 2022.

  • Conversely, only 16 deals of $100 million or more were announced during Q1, compared with 24 in the year-prior period.
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