2024

United

Bitcoin

<p data-ct-non-breakable="true">Global funding for fintech ventures has fallen to its lowest level in seven years, with a 16% quarter-over-quarter dip between Q4 2023 and Q1 2024. This is despite a reported 11% gain for venture funding across sectors.&nbsp;</p>
<p>Analytics firm CB Insights recently <a href="https://www.cbinsights.com/research/report/venture-trends-q1-2024/" target="_blank" rel="noopener nofollow">released</a> its quarterly venture capital report highlighting activity for Q1 2024. The firm called the quarter a “mixed bag for the venture market,” citing eight straight quarters of decline in equity deals as a negative factor. This was somewhat offset by gains from a handful of massive deals, including <a href="https://cointelegraph.com/news/amazon-minority-share-chat-gpt-rival-anthropic-ai">Amazon’s $4 billion investment in Anthropic AI</a>. </p>
<h2 id="venture-funding">Venture funding</h2>
<p data-ct-non-breakable="true">Venture funding for Q1 2024 reached $58.4 billion, according to the report. This is a net quarter-over-quarter gain of 11% against Q4 2023’s $52.8 billion. This indicates the possibility of a rebound; however, the overall market remains down 21% vs. Q1 2023 and 62% vs. Q1 2022.</p>
<p>Losses were reflected in the number of new unicorns—billion-dollar startups—hitting only 19 for the quarter. The previous quarter brought in 23, indicating a roughly 17% decrease quarter-over-quarter to start 2024. </p>
<h2 id="fintech-decline">Fintech decline</h2>
<p data-ct-non-breakable="true">Fintech didn’t fare as well as other VC sectors in Q1 2024. According to the report, funding fell 16% quarter-over-quarter between Q4 2023 and Q1 2024, bringing the current fintech venture market in line with 2017’s. </p>
<p>In the United States, the primary geographic funding arena for venture capital in the fintech sector, this decline coincided with increased <a href="https://www.consumerfinancemonitor.com/2024/04/09/recent-fdic-consent-orders-show-increased-regulation-scrutiny-of-bank-relationships-with-fintech-partners/" target="_blank" rel="noopener nofollow">scrutiny</a> by the Federal Deposit Insurance Corporation into banking relationships with fintech companies. </p>
<h2 id="crypto-surge">Crypto surge</h2>
<p data-ct-non-breakable="true">Meanwhile, Q1 2024 has seen unprecedented highs for Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) as well as a market cap high for the quarter for all cryptocurrencies of $2.9 trillion — <a href="https://www.coingecko.com/en/global-charts#:~:text=The%20global%20cryptocurrency%20market%20cap%20today%20is%20%242.67,5.84%25%20share%20of%20the%20total%20crypto%20market%20cap." target="_blank" rel="noopener nofollow">down</a> to $2.71 trillion in Q2, as of the time of this article’s publication. </p>
<p data-ct-non-breakable="true"><strong><em>Related: </em></strong><a href="https://cointelegraph.com/news/bitcoin-126m-shorts-liquidated-surpassed-72k"><strong><em>$102M shorts liquidated as Bitcoin price surpassed $72K</em></strong></a></p>
<p data-ct-non-breakable="true">This market movement comes in the final week and a half before <a href="https://cointelegraph.com/news/bitcoin-halving-2024">the next Bitcoin halving</a>. As Cointelegraph recently reported, some analysts are <a href="https://cointelegraph.com/news/analysts-150k-btc-top-10-days-before-halving">predicting a lift of as much as 160%</a> in price, bringing BTC from its current mark of about $70,000 to somewhere around $150,000. Other analysts, however, recently called the halving <a href="https://cointelegraph.com/news/bitcoin-halving-could-be-a-sell-the-news-event-at-least-for-a-few-months">a “sell the news” event</a>.</p>

Fintech funding falls to lowest levels since 2017 as crypto surges

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Cointelegraph

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