In 2024, securing fintech funding has become more difficult, with fintech investments dropping from USD 62.3 billion in the second half of 2023 to USD 51.9 billion in first half of 2024. Geopolitical uncertainty and rising interest rates are partly to blame, causing investors to be highly selective and show a clear preference towards fintechs active in financial crime, cybersecurity and generative AI applications. With a continuing decrease in valuations since 2021, fintechs find themselves having to adjust to lower expectations. At the same time, experts expect gradual increases in funding, especially for decentralized finance and climate-related tech. To take advantage of this expected increase in funding, early-stage startups need to start differentiating themselves by proving they are on the path to profitability.
