Fintech funding has fallen to its lowest level since 2017 as crypto rises
Between Q4 2023 and Q1 2024, global funding for fintech ventures fell to its lowest level in seven years, with a quarter-on-quarter increase of 16%. This is reported to be 11% available for venture funding across sectors.
Analyst firm CBB Insights recently released its quarterly trading capital report highlighting the Q1 2024. This was somewhat offset by gains from a few big deals, including Amazon's $4 billion investment in Anthropic AI.
Venture funding
Venture capital funding for Q1 2024 reached $58.4 billion, the report said. This is an 11% quarter-over-quarter gain compared to Q4 2023's $52.8 billion. This indicates the possibility of rehabilitation; However, the overall market is down 21% from Q1 2023 and 62% from Q1 2022.
Losses hit just 19 in the quarter, reflected in the new unicorn-billion-dollar startups. It brought in 23 last quarter, a roughly 17 percent quarter-over-quarter decline to start in 2024.
The failure of fintech
Fintech did not perform as well as other VC sectors in Q1 2024. According to the report, funding fell by 16% quarter-on-quarter between Q4 2023 and Q1 2024, bringing the current fintech venture market to par with 2017.
In the United States, the main geographic funding platform for venture capital in the fintech sector, the fallout comes as the Federal Deposit Insurance Corporation investigates banking relationships with fintech companies.
The rise of Crypto
Meanwhile, Q1 2024 saw an unprecedented market cap for Bitcoin (BTC), as well as an all-time high market cap for all cryptocurrencies during the quarter of $2.9 trillion — down from $2.71 trillion in Q2, at the time of this article's publication.
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This market move comes in the week and a half before Bitcoin halved. As Cointelegraph recently reported, some analysts are predicting a rise in price of up to 160%, bringing BTC from the current $70,000 mark to around $150,000. Other analysts, however, recently called the half “selling the news.”
