In the first quarter of 2024, global fintech funding significantly declined by 16% to reach its lowest point since early 2017. This decrease occurred despite a broader surge in venture capital, with overall startup funding growing by 11% quarter-over-quarter to $58.4 billion, according to the latest CB Insights Q1 2024 State of Venture Report.

Fintech startups managed to raise just $7.3 billion during the period, marking a stark contrast to the broader venture capital trend. However, the sector experienced a 15% increase in equity deal activity, suggesting a robust interest in fintech, particularly in the area of payment technologies.

During Q1 2024, fintech firms participated in 904 investment deals. Leading these was Monzo, a UK-based digital bank, which secured $430 million in what became the largest single funding round of the quarter.

The United States remained a dominant player in fintech investment, with companies there securing $3.3 billion over 393 deals. Europe was not far behind, with its fintech companies raising $2.2 billion across 203 deals.

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In Africa, startups attracted $466 million in funding during the same period, with the transport and logistics sector leading the way by accounting for 32% of the total funding. Fintechs came in second, capturing 23% of the overall funding, as reported by Africa: The Big Deal.

This contrast in fintech funding against a backdrop of general venture capital growth highlights the sector's current challenges and opportunities, as investors continue to show a strong appetite for innovative financial solutions despite the overall funding slowdown.