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FinTech Fundraising Falls to $557M in 16 Deals
UK Takes the Lead
Despite a quiet week for FinTech deals, the UK emerged as the top market, securing four deals worth a total of $557.5 million. This marks a rare occasion where the US did not lead the pack.
US FinTech Faces Challenges
The US FinTech sector continues to struggle. A report by FinTech Global revealed that deal activity and funding in the US halved in the second quarter of 2024 compared to the previous quarter. While average deal size slightly increased, the overall funding raised by US FinTech companies plummeted by 62% year-over-year.
Global Deals
Beyond the UK and the US, deals were spread across various regions. Notable deals included:
- Canada: KOHO raised $190 million to support its growth.
- Philippines: Salmon secured funding to expand its marketplace lending platform.
- Israel: Air Doctor raised funds for its InsurTech platform.
Key Trends
- Funding: Overall funding was down compared to the previous week.
- Sectors: WealthTech and CyberTech were the most popular sectors.
- Deal Size: Most deals were under $10 million.
UK CyberTech Outlook
Despite the recent decline in deal activity, UK CyberTech funding is projected to grow by 7% in 2024. However, the number of deals is expected to decrease significantly compared to the previous year.
Conclusion
While the global FinTech landscape saw a slow week, the UK’s dominance and the challenges faced by the US highlight the evolving dynamics of the industry. As the year progresses, it remains to be seen how these trends will shape the future of FinTech.
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