The total capital invested into fintech globally reached $15.9 billion in H1 2024, a decrease of 19% compared to H2 2023 when total investment amounted to $19.5 billion.

The capital invested in fintech in the first half of 2024 was spread across 1,566 deals compared to 1,661 deals in H2 2023. There was a shift towards earlier stage deals and the average deal size was $10.2 million, reflecting a return to early-stage investments.

Overall, the US received the most investment in H1 2024, bringing in $7.3 billion in fintech capital across 599 deals, with the UK firmly in second place with $2 billion and 183 deals, rounded off by India with $837 million and 78 deals, China with $589 million invested across 30 deals and Germany with $462 million invested across 37 deals.

In the first half of 2024 the UK received $2bn of investment, 37% down on the previous six months. However this was still more investment than all other European countries combined, representing 12.7% share of the global market. Over the last 12 months, UK investment was also above pre-Covid investment levels of 2018 and 2019.

Across the top 10 global markets, the top three countries continue to be the United States, United Kingdom and India, whilst France is no longer in the top 10.

Janine Hirt, CEO of Innovate Finance, says: “We believe the decline in investment since the 2022 peak may have bottomed out, however the market has not yet shown that it has turned and this may not start until 2025.

“The latest investment figures show increasing global competition for fintech investment, demonstrating the ever greater need for the UK policy and regulatory environment to take action to maintain our lead in fintech and in financial services more widely. Moreover, with political uncertainty affecting investment elsewhere in the world, the UK has a window of opportunity to forge ahead.