Pof h1 2024

Global analysis of fintech funding
August 2024
kpmg.com/fintechpulse
Author: Anton Ruddenklau, Global Head of Fintech and Innovation, Financial Services, KPMG International
2024 got off to a challenging start for the fintech market globally, Looking back on the first half of 2024, the sentiment of fintech Looking forward, the confluence
driven by ongoing concerns related to geopolitical uncertainty and investors can be characterized as restrained. Consider some of between asset management, asset
high interest rates. Total global investment declined from the key trends we’ve seen across the fintech sector over the past ownership and capital markets is a ripe
$62.3 billion to $51.9 billion between H2’23 and H1’24 — the six months: area for investment globally — whether
lowest six months of fintech investment since H1’20. All regions • Mature, stable markets attracting the largest fintech deals. it’s clearing, trading, settlements, or
experienced a noticeable drop in fintech investment, with the actually supporting asset allocation
• Investors continuing to shy away from the largest deals, with
EMEA region experiencing the sharpest drop — from $19.4 billion
very few exceptions. and investment monitoring. That will be
to $11.4 billion between H2’24 and H1’24.
• AI drawing significant interest, both as a means to improve a really interesting area to watch over
Globally, only five $1 billion+ deals occurred in the fintech space the next six months.
operating efficiencies and to reduce costs.
during the first half of 2024 — all buyouts. The Americas
accounted for four of these deals, including Worldpay • Regtech interest continuing to increase, particularly in the
($12.5 billion) and EngageSmart ($4 billion) in the US and Nuvei EMEA region.
($6.3 billion) and Plusgrade ($1 billion) in Canada. The UK With interest rate cuts taking longer to materialize than initially
accounted for the fifth deal — the $4 billion buyout of IRIS expected, the pickup in investment activity predicted in H2’23 is
Software group. The UK also saw the largest fintech-focused VC taking longer than originally thought to come to fruition. Heading
deal of H1’24 — a $999 million raise by Abound. into H2’24, fintech investment is expected to remain subdued —
While fintech investment remained suppressed, deal volume except, perhaps, when it comes to AI and generative AI — given
offered a hint of optimism for the fintech market; both the the continued high cost of capital and geopolitical uncertainly.
Americas — including the US — and the ASPAC region saw deal AIl eyes will likely be on interest rates and on the US presidential
volumes increase between H2’23 and H1’24. election heading into H2’24.
At a sector level, payments continued to draw the largest share of Whether you’re the CEO of a large financial institution or the
fintech funding globally, attracting $21.4 billion in H1’24. Regtech, founder of an emerging fintech, it’s critical to consider how your
however, was the only major fintech subsector to see investment company can become more efficient and profitable given the cost
increase in the first half of 2024 — with the $5.3 billion in of capital will likely remain high for some time. As you read this Anton Ruddenklau
investment already surpassing 2023’s total. At a technology level, edition of Pulse of Fintech, ask yourself: How can we position our Global Head of Fintech and Innovation
AI continued to be a very hot area of interest for investors, organization to be more competitive and sustainable both now Financial Services
particularly in the US. and in the future? KPMG International
Unless otherwise noted, all figures quoted in this report are based on data provided by PitchBook as of 30 June 2024. See page 54 for detailed methodology. All
currency amounts are in US$ unless otherwise specified.
#fintechpulse
© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
2
Global insights
• Global fintech market sees $51.9 billion in total investment in H1’24
• Top fintech trends for H2’24
Regional insights
Fintech segments Regional insights

• Payments • Wealthtech • Americas
• Insurtech • Crypto and Blockchain • ASPAC
• Regtech • EMEA
• Cybersecurity
#fintechpulse
3
Global insights Fintech segments | Regional insights
#fintechpulse
4
Author: Anton Ruddenklau, Global Head of Fintech and Innovation, Financial Services, KPMG International
Global fintech market sees $51.9 billion in total investment in H1’24 The high cost of capital and
geopolitical uncertainty linked to
Total global fintech investment slides in first half with just $979 million in global PE investment at midyear, conflict and elections, have put a
of year compared to $9.6 billion in 2023. significant damper on global fintech
Global investment in fintech across VC, PE and M&A fell from Three largest fintech deals of H1’24 spread across investment so far this year. Investors
$62.3 billion across 2,287 deals in H2’23 to $51.9 billion across Americas and Europe are acting cautiously, not only when it
2,255 deals in H1’24. At a regional level, every key jurisdiction saw While the US accounted for the largest fintech deal of H1’24 — the comes to large transactions,
total fintech investment slide; in the Americas, total investment $12.5 billion buyout of a majority stake in payments processing firm particularly on the M&A front given
dipped from $38.5 billion to $36 billion, while in Europe, Middle Worldpay by GTCR1 — Canada and the UK attracted the next two concerns about valuations and the
East and Africa (EMEA), it fell from $19.1 billion to $11.4 billion, largest deals: Canada-based payments processing company Nuvei profitability of potential targets
and in Asia Pacific (ASPAC) it dropped from $4.6 billion to was taken private by PE firm Advent International in a $6.3 billion investors are focused on improving the
$3.7 billion. deal,2 while UK-based financial software firm IRIS Software Group companies they already own rather
Americas and ASPAC both see pickup in deals was bought out by Leonard Green.3 By comparison, ASPAC saw than buying new.
volume much smaller deal sizes: China-based Yi-an Enterprise saw the
region’s largest deal — a $280 million Series B VC raise.
Fintech deal volume globally held nearly steady at 2,255 in H1’24.
Both the Americas and ASPAC saw deal volume increase between With interest rates slow to drop, big deals
H2’23 and H1’24 — from 1,066 to 1,123 in the Americas and from remain elusive
406 to 438 in ASPAC — while the EMEA region saw deal volume During H1’24, the European Central Bank, the Bank of Canada,
decline from 804 to 689. and the Swiss National Bank began to make cuts to interest rates,
Fintech M&A investment ahead of 2023’s pace, which rose dramatically during 2022 and 2023. While a positive
PE well behind move, interest rate cuts have been conservative to date and key
jurisdictions — including the US and UK — have not followed suit.
While soft compared to the outlier high of $172 billion in 2019, Given the high cost of capital and concerns about valuations and Karim Haji
global fintech M&A investment at the end of H1’24 was somewhat returns, fintech deals have been slower to materialize, particularly Global Head of Financial Services
ahead of the pace seen last year — with $32.6 billion in deal value at largest deal sizes. Within the VC market in particular, the KPMG International
compared to the $58.8 billion seen during all of 2023. PE fintechs that raised the largest during H1’24 leaned heavily towards
investment, meanwhile, is well behind the pace seen last year — more mature companies looking to raise scaling capital.
1. FIS. “FIS completes sale of majority stake of WorldPay to GTCR.” (1 February 2024).
2. Reuters. “Advent to buy Ryan Reynolds-backed fintech Nuvei in $6.3 bln deal.” (1 April 2024).
3. Bloomberg. “Leonard Green to buy Iris Software Stake at £3.2 billion value.” (23 December 2023).
#fintechpulse
5
Payments dominates fintech investment globally, The large buyouts we’ve seen in H1’24
attracting over $21 billion in H1’24 Trends to watch for in H2’24 really highlight the valuation challenges
The payments sector remained the dominant sector for fintech • Larger focus on Central Bank Digital Currencies in the market right now and the need
investment during H1’24, attracting $21.4 billion in investment — (CBDC) and regulated stablecoins. for startups and their investors to really
only slightly less than the $22.7 billion in payments-focused deal take the defensive to protect their
• Increasing interest in middle and front office
value seen during all of 2023. The buyouts of Worldpay and Nuvei, valuations from sliding even further.
solutions related to investment management.
however, accounted for $18.8 billion of this total. Within the Other large deals have been incredibly
payments space, there was growing interest in use-case driven • Growing investor focus on AI-powered fintech slow to materialize, which likely will
payments companies, including startups focused on finding ways to offerings, including in emerging areas like continue until interest rates really begin
add value in very specific areas of the financial services market — behavioural intelligence. to drop.
such as payments insurance, unsecured lending, and insurance • Increasing investor attention on less traditional
claims.
fintech markets, including Africa and parts of
AI remails a major priority for fintech investors Southeast Asia — such as Indonesia and the
Following broader investment trends, AI continued to be a Philippines.
very hot area of interest to fintech investors, particularly in • ESG fintech continuing to gain attention, particularly
the US. During H1’24, the US saw four large AI-focused in areas like carbon measurement and tracking.
fintech deals. Cyber insurance company Corvus was
acquired by Travellers for $427 million,4 compensation-
focused platform Spiff — was acquired by Salesforce for
$419 million,5 and corporate management company Ramp
and investment management platform FundGuard raised
$150 million and $100 million VC funding rounds,
respectively. China-based AI-powered sustainability data Tim Johnson
company MioTech also raised $150 million during H1’24. Global Lead, Deal Advisory
Financial Services
KPMG International
4. Business Wire. “Travelers completes acquisition of Corvus Insurance.” (2 January 2024).

5. Spiff. “Salesforce signs definitive agreement to acquire Spiff.” (1 February 2024).
#fintechpulse
6
During the first half of 2024, fintech investors remained very cautious, pulling back from making large deals except in exceptional circumstances. With
macroeconomic conditions expected to remain challenging well into H2’24, and a US presidential election approaching, fintech investment is expected to
remain subdued heading into H2’24.
Here are our top predictions for fintech in H2’24.
AI will continue to gather steam among fintech investors: Similar to DORA will keep investors focused on cybersecurity: Cybersecurity
the investment environment more broadly, interest in AI will likely will remain a key focus for fintech investors, particularly given the EU’s
overshadow every other area in terms of investor interest and investment. Digital Operations and Resilience Act will come into force early in 2025;
AI-related cybersecurity solutions will garner the most interest and
investment.
The payments space will continue to attract the lion’s share of

investment: Payments will continue to account for the largest deals in Increasing convergence between trad-fi and de-fi: Jurisdictions will
the payments space, with a continued focus on the modernization of continue to explore and approve activities that blend traditional finance
B2B payments, embedded payments, and real-time payments. with decentralized finance, including areas like the tokenization of real
work assets and the use of traditional financial infrastructure to support
crypto investment.
Regtech will attract additional attention and investment: Regtech

will attract increasing interest and investment — driven by the constant
evolution of regulatory regimes and the growing complexity of reporting
requirements.
#fintechpulse
7
Dealmaking remains subdued at best
Total global funding activity (VC, PE and M&A) in fintech 2021-2024* Global venture capital funding activity in fintech 2021-2024*
$250 8,215 10,000 $140 6,967 8,000

6,759
7,803 $120 7,000
$200 8,000
$100 6,000
5,126 4,326 5,000
$150 6,000 $80
4,000
$100 4,000 $60
2,255 1,939 3,000
$40 2,000
$50 2,000
$20 1,000
$229.6 $197.9 $118.2 $52.0 $122.2 $88.9 $49.7 $18.3
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
Deal value ($B) Deal count Deal value ($B) Deal count
Global M&A activity in fintech 2021-2024* Global PE growth activity in fintech 2021-2024*
$120 1,104 1,200 $18 160 180

$16 144 160
$100 1,000
884 $14 123 140
$80 677 800 $12 120
$10 100
$60 600
$8 80
52
$40 264 400 $6 60
$4 40
$20 200
$2 $1.0 20
$91.0 $99.4 $58.8 $32.7 $16.4 $9.6 $9.6
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
Source: Pulse of Fintech H1'24, Global Analysis of funding in Fintech, KPMG International (data provided by PitchBook), *as of 30 June 2024.
#fintechpulse
8
Even amid subdued dealmaking, financing metrics are robust
Global median pre-money valuations ($M) by stage in fintech 2021-2024* Global cross-border M&A activity in fintech 2021-2024*
$50 358 400

324 350
$510.0 $40
$444.4 300
228
$30 250
$250.0 200
$20 150
91
$158.8 100
$10
$60.0 $50.1 $26.0 $50.0 Global median M&A size ($M) in fintech 50
$26.2 $23.0 $40.0 $9.5 $39.6 $45.2 $20.8 $12.5
$40.0 2020—2024*
$7.0 $13.7 $0 0
$9.5
2021 2022 2023 2024* 2021 2022 2023 2024*
Pre-seed/Seed Early VC Later VC Venture growth Deal value ($B) Deal count
Global VC activity in fintech with corporate participation 2021-2024* Global median M&A size ($M) in fintech 2021-2024*
$70 2,296 2,174 2,500 $60

$55.7
$60
2,000 $50 $50.0
$50
$40
$40 1,199 1,500 $39.3
$30 $30 $30.0
1,000
589
$20 $20
500
$10
$64.9 $45.6 $27.8 $8.5 $10
$0 0
2021 2022 2023 2024* $0
Deal value ($B) Deal count 2021 2022 2023 2024*
Source: Pulse of Fintech H1'24, Global Analysis of funding in Fintech, KPMG International (data provided by PitchBook), *as of 30 June 2024. The 2024 YTD
figure for the median pre-money valuation at the growth stage is based on a non-normative population size.
#fintechpulse
9
Dealmaking momentum could be entering a plateau
Total global funding activity (VC, PE and M&A) in fintech 2021-2024* Global M&A activity in fintech 2021-2024*
$120 3,000 $70 350
$60 300
$100 2,500
$50 250
$80 2,000
$40 200
$60 1,500
$30 150
$40 1,000
$20 100
$20 500
$10 50
$102.3
$61.1
$52.1
$62.5
$53.9
$42.0
$23.6
$30.0
$39.3
$16.5
$34.7
$27.6
$29.4
$22.6
$31.0
$18.3
$24.8
$17.0
$66.0
$10.4
$17.0
$18.4
$18.1
$15.7
$21.1
$11.6
$6.0
$6.6
$0 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2021 2022 2023 2024 2021 2022 2023 2024
#fintechpulse
10
VC financing sees first bump in several quarters, in terms of aggregate VC invested
Global venture capital funding activity in fintech 2021-2024* Global venture capital activity in fintech with corporate participation 2021-2024*
$40 2,500 $20 800
$18
$35 700
2,000 $16
$30 600
$14
$25 500
1,500 $12
$20 $10 400
1,000 $8
$15 300
$6
$10 200
500 $4
$5 100
$14.5
$2
$14.8
$19.0
$16.6
$17.7
$14.7
$13.9
$10.1
$26.0
$30.0
$34.3
$32.0
$32.4
$28.1
$16.8
$11.6
$19.2
$10.9
$10.7
$7.8
$5.4
$4.9
$4.0
$5.0
$3.4
$5.1
$9.6
$7.6
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024
Deal value ($B) Deal count Pre-seed/Seed
Deal value ($B) Deal count
Early VC Later VC Venture growth
#fintechpulse
11
Top 10 global fintech deals in H1 2024

1. Worldpay — $12.5B, Cincinnati, US — Payments — Buyout
2. Nuvei — $6.3B, Montreal, Canada — Payments — Public-to-private buyout
3. IRIS Software Group — $4B, Slough, UK — Institutional/B2B — Secondary

buyout
7
3
4. EngageSmart — $4B, Braintree, US — Payments — Public-to-private buyout
2
4 1 6 10 5. Plusgrade — $1B, Montreal, Canada — Institutional/B2B — Buyout
9
6. Abound — $999.6M, London, UK — Consumer finance — Series B
5
7. Tegus — $930M, Chicago, US — Information — M&A
8 8. Clear Street — $685M, New York, US — Institutional/B2B — Series B
9. Banco BPM Gruppo — $652.6M, Milan, Italy — Payments — Corporate

divestiture
10. Monzo — $621M, London, UK — Banking — SeriesI
#fintechpulse
12
Global insights Fintech segments Regional insights
• Payments
• Insurtech
• Regtech
• Cybersecurity
• Wealthtech
• Crypto and Blockchain
#fintechpulse
13
Author: Courtney Trimble, Global Lead, Payments, KPMG International
Two payments deals account for $18.8 billion of the $21.4 billion of investment seen in H1’24
Total global funding activity (VC, PE and M&A) in payments 2021-2024* The payments space attracted $21.4 billion in investment in H1’24, falling just shy of the $22.7 billion of
investment seen in the space during all of 2023. The overarching number does not tell the full story,
$70 1,200
however; two deals in the Americas accounted for $18.8 billion of this total, including GTCR’s $12.5 billion
1,077 buyout of a majority stake in US-based payments processing firm Worldpay and the $6.3 billion take private
deal of Canada-based Nuvei by PE firm Advent International. Outside of these two significant outlier deals,
$60
1,000 total global investment in the payments space was incredibly subdued. Deal volume was also very soft, with
919
just 231 payments deals seen globally in H1’24 — well behind even 2023’s pace, which saw a six-year low
of 570 deals during the year.
$50
800 Key H1’24 highlights from the payments sector include:
$40 Increasing focus on consolidation and global expansion in payments space
570 Given the significant economic headwinds, investors in the payments space globally showed little interest in
600
making major VC investments during H1’24. Despite this lull, there continued to be movement on the M&A
$30 front as investors prioritized consolidation in order to scale and drive expansion activities. In addition to the
Worldpay and Nuvei deals, Spain-based travel technology company Amadeus acquired Spain-based travel-
400 focused invoicing and payments company Voxel for $127 million,6 while Canada-based financial insurance
$20 technologies company Vencora acquired Switzerland-based banking technology company Crealogix for
231 $96.6 million.7
200
$10 Americas and Europe see strongest payments activity
Investors in the payments space focused heavily on stable markets in H1’24, with the top 16 largest
$57.2 $54.9 $22.8 $21.4 payments deals occurring in one of the two regions. The largest payments deals in the ASPAC region
$0 0
included a $50 million VC raise by Singapore-based B2B payments platform Nium and a $32.7 million raise
2021 2022 2023 2024*
by Indonesia-based credit card company Honest. New regulation on instant payments came into force in the
EU, with some obligations for payment service providers to enter into force in January and October 2025,
Deal value ($B) Deal count putting financial institutions under pressure, especially regarding the verification of payee obligation where
international interoperability is a key concern.8
6. Amadeus. “Amadeus acquires travel payments expert Voxel.” (2024, March 10).
7. CREALOGIX. “Vencora acquires CREALOGIX.” (2024, February 22).
8. Swift. “Swift research finds European SMEs expect to be more competitive and save money as a result of instant payments regulation.” (2024, June 18).
#fintechpulse
14
AI for fraud prevention becoming a key focus for The B2B payments landscape continues
investors What to watch for in H2’24 to evolve rapidly with a transformative
Within the payments space, interest in AI has continued to increase, • A possible uptick in activity, particularly following shift towards digitization, underpinned by
with both investors and fintechs looking to leverage AI in different the US presidential election in November. the increased adoption of instant
ways to solve payments-related challenges. During H1’24, for payments, surge in mobile payments,
example, Mastercard announced its use of generative AI to • Consolidation continuing and global expansion to and advancement of AI technologies
accelerate card fraud detection9 and Swift announced an AI-based be important for the foreseeable future as
and cross-border solutions. These
pilot with member banks to explore how the technology could assist payments companies look to scale and grow.
innovations are not only streamlining
in combatting cross-border payments fraud.10 Fraud detection and • Increasing regulations and risk management payment processes but also creating
prevention solutions were of particular interest to investors given the strategies to prevent fraud and protect customers, opportunities for increased efficiency,
intensifying focus on instant payments models in different particularly given real-time payments decreased costs, and enhanced
jurisdictions and the surging number of cross-border transactions. environments. security. Looking ahead, this is an area
Payments activity diverse — from digitization of • Growing volume of account-to-account payments that will likely see significant attention
payments to digital currency payments in Europe supported by open banking and instant over the next six to 12 months.
Different regions and jurisdictions continued to see a wide range of payment regulation.
trends but represent unique regional differences in adoption and • Increasing focus on the modernization of B2B
usage behavior in H1’24. In regions like Africa and parts of Southeast payments tandem with a surge in cross-border
Asia, investments in the payments space remained focused on payment volume.
digitization given the very high number of cash-based transactions. In
• Continued focus on embedded payments and
other regions, payments activity was much broader, ranging from
instant payments and cross-border payments solutions to embedded
related services.
payments and analytics solutions to support data monetization and • Growing use of AI within the payments space, Courtney Trimble
commercialization. During H1’24, the Bank of China also pilot tested particularly to detect and prevent fraud. Global Lead, Payments
a new service to allow merchants to accept digital currency payments KPMG International
on their cell phones. Principal, Financial Services
KPMG in the US
9. Mastercard. “Mastercard accelerates card fraud detection with Generative-AI Technology.” (2024, May 22).
10. Swift. “Swift and global banks launch AI pilots to tackle cross-border payments fraud.” (2024, May 30).
#fintechpulse
15
Author: Ram Menon, Global Lead, Deal Advisory, Insurance, KPMG International
Insurtech funding falls to lowest level in a decade
Total global funding activity (VC, PE and M&A) in insurtech 2021-2024*

Investment in insurtech dried up significantly in H1’24, with just $1.6 billion in investment
globally — less than a quarter of the $8.2 billion seen during 2023. The US continued to
$12 600 attract the vast majority of insurtech deals and funding globally, including the $427 million
acquisition of cyber-insurance company Corvus by Travellers, the $151 million VC raise by
504 direct-to-consumer insurance company Kin, and the $80 million raise by embedded insurance
$10 500 provider Cover Genius. An $80 million VC raise by India-based real-time underwriting
420
company Perfios was the largest insurtech deal in the ASPAC region during H1’24, while a
$73 million raise by UK-based pricing decision intelligence firm Hyperexponential claimed the
$8 400
top spot in the EMEA region.
Key H1’24 highlights from the insurtech space include:
293
$6 300
Cost of capital making it difficult for insurtechs to raise funds
The cost of capital continued to put a damper on insurtech investment in H1’24, with total
$4 200 global investment falling to the weakest level seen in ten years. Early-stage deals saw the
biggest slowdown, although later stage companies also saw significant challenges, with
113 investors putting a laser focus on companies able to show profitability.
$2 100
Challenging environment for M&A
$10.9 $5.8 $8.3 $1.6 M&A activity within the insurtech space was incredibly dry during H1’24, with the exception of
$0 0 the acquisition of Corvus by Travellers. While there were a number of insurtechs looking for
2021 2022 2023 2024*
buyers during H1’24, acquirers were very cautious given the high cost of capital and lack of
profitability of potential targets.
#fintechpulse
16
Embedded insurance, cyber remain attractive to We’ve been through times where money
investors What to watch for in H2’24 was easy, and investors were happy to
chase opportunities and support start-up
While investment was very soft in H1’24, major carriers • AI continuing to attract the lion’s share of businesses explore innovative solutions.
continued to show interest in opportunities within the interest, similar to general investment trends. But when money flow gets tight, investors
embedded insurance space given the perceived potential of • Corporate investors tightening their wallets in begin asking the hard questions like what is
point-of-sale insurance offerings. Interest in cybersecurity the ‘path to profitability’ and how long will it
order to focus on AI enablement.
take for the business model to generate
also remained high, both from a defence perspective given
• Regtech investment remaining quite dry given sustainable positive cash flows? For
the rise in cyberattacks targeting the industry and in terms
current market conditions. insurtech, getting the scale and size to turn
of insurance carriers looking to expand their capabilities a profit takes time. That’s making it difficult
into writing cyber insurance. • Growing optimism around insurtech to attract investors given current market
opportunities in the ASPAC region, particularly conditions. Profitable insurtechs will
MGA insurtechs still attracting investment
over the longer term. continue to attract capital, but the rest will
Despite the challenging market, MGA (managing general likely continue burning up cash.
• Embedded insurance and cyber, and enabling
agent) insurtechs continued to attract money as a result of
technologies, continuing to attract attention
their successful business models, ability to drive
from investors, particularly larger carriers.
efficiencies, and the fact they do not carry risk on their
balance sheets. Compared to other areas of insurtech,
MGA fintechs are well positioned to remain attractive to
carriers from an acquisition point of view.
Ram Menon
Global Lead, Deal Advisory, Insurance
KPMG International
Partner
KPMG in the US
#fintechpulse
17
Author: Courtney Trimble, Global Lead, Payments, KPMG International
Global investment in regtech strengthens in H1’24

Total global funding activity (VC, PE and M&A) in regtech 2021-2024* Regtech attracted $5.3 billion in investment during H1’24, making it the second most
attractive sector of fintech investment after payments. The $4 billion buyout of UK-based IRIS
$25 500 Software Group by Leonard Green accounted for the vast majority of this investment, followed
445 by the $235 million buyout of US-based Sayari by TPG, and the $109 million buyout of
427 450
Ireland-based SoftCo by Keensight Capital. The regtech space also saw two $100 million+
$20 400 funding rounds during H1’24 — a $104 million raise by Germany-based Solaris and a $100
million raise by Netherlands-based DataSnipper. The largest regtech deal in the ASPAC
350 region was a $32.8 million raise by Australia-based Constantinople.
$15 284 300 Key H1’24 highlights from the regtech sector include:
250
VC and PE investors increasingly interested in regtech opportunities
Globally, both VC and PE investors have shown increasing interest in the regtech space,
$10 200
seeing it as a sector with sustainable growth opportunities given the growing pressure on
134 150 financial services companies and other organizations needing to comply with increasingly
complex and detailed regulatory requirements. While deal sizes were relatively small in most
$5 100 regions during H1’24 — with the exception of the Iris Software buyout — the number of deals
remained quite robust; both the number of deals and deal sizes are expected to grow as
50
macroeconomic conditions improve.
$15.6 $21.1 $3.4 $5.3
$0 0 Risk and compliance drivers building the case for regtech
2021 2022 2023 2024*
Globally, a number of factors continued to come together to put a focus on regtech in H1’24,
Deal value ($B) Deal count including shifting regulatory requirements, more complex reporting requirements, and the
constantly evolving risk environment. This confluence of factors has put a lot of strain on
companies, which is driving interest in solutions and regtechs able to automate and
streamline specific activities.
#fintechpulse
18
Core areas of regtech still attracting significant Despite the geopolitical and
interest What to watch for in H2’24 macroeconomic challenges facing the
market today, the regtech space has
The definition of regtech has expanded considerably in • Continued focus on deployment of regtech as continued to evolve and grow. There is a
recent years to include activities like ESG, horizon scanning, risk and compliance functions seek to deliver real demand for solutions able to help
cybersecurity, and data privacy. Despite this expansion, the greater organizational value. organizations manage complex
major focus for investors in H1’24 continued to be core regulatory requirements, and ultimately
• Regtechs increasingly looking to take
regtech solutions, including anti-fraud, anti-money deliver greater value from risk,
advantage of GenAI and AI more broadly. compliance, and controls activities. Given
laundering, and customer identity management — with AI
• Increasing interest in regtechs able to provide this demand, we’ll likely continue to see
increasingly playing a role in such solutions. Ongoing good investment in the regtech space
regulatory pressures and the significant losses being solutions fit to complex multi-jurisdictional
heading into H2’24.
incurred by financial services firms will likely keep investment requirements.
in these areas strong for the foreseeable future. • Regulators and central banks’ adoption of
Growing focus on ESG — but a small percentage of machine learning and other technologies
the regtech market (suptech) will continue to drive a response in
the firms they supervise regtech.
Following on a trend seen in 2023, interest in ESG-related
technology solutions continued to grow during H1’24, with an • Regulators in a number of jurisdictions (e.g.
increasing number of regtechs offering ESG solutions. Hong Kong (SAR)) looking for ways to
Investments in ESG-focused fintech have remained relatively encourage regtech development and
small, however, particularly compared to the level of adoption.
Chris Steele
investment going into areas like AML. • Continued use of regulatory sandboxes and Partner, Banking Risk and Regulation
other tools to promote innovation within KPMG in the UK
financial services.
#fintechpulse
19
Author: Charles Jacco, Financial Services Cybersecurity Lead, KPMG International
Cybersecurity deals volume remains strong globally in H1’24, despite slightly soft investment
Total global funding activity (VC, PE and M&A) in cybersecurity 2021-2024* Global investment in cybersecurity was somewhat softer in H1’24, with $640 million in
investment — slightly less than half of the $1.4 billion seen during 2023. The number
$5.0 120 of cybersecurity deals (40), however, was quite strong — on pace to match the
105 second-best year for cybersecurity deal volume ever.
$4.5
100 The vast majority of cybersecurity deals occurred in the US during H1’24, led by the
$4.0 $235 million buyout of supply chain risk intelligence platform Sayari by TPG, and
80 $100 million VC raises by AI-investment accounting platform FundGuard and stake
$3.5
80 validation marketplace EigenLayer.
71
$3.0
Key H1’24 highlights from the cybersecurity sector include:
$2.5 60 AI a top priority for cybersecurity investors
$2.0 Within the cybersecurity space, AI continued to be an incredibly hot area of interest
40
40 and investment in H1’24, with investors focusing on a range of AI applications, from
$1.5 AI-driven risk intelligence platforms to AI-powered supply chain security solutions. In
addition to these operational applications of AI, investors have also shown increasing
$1.0
20 interest in cybersecurity solutions aimed at protecting and safeguarding AI activities,
$0.5 such as by ensuring the security of AI algorithms and protecting the integrity of data
$4.4 $1.7 $1.5 $0.6 being used by GenAI models.
$0.0 0
2021 2022 2023 2024*
#fintechpulse
20
Platform models gaining ground over smaller players There’s definitely a big focus on platform
What to watch for in H2’24 integration plays. We’re not seeing a lot of
During H1’24, the large platform players — both large
M&A activity around the smaller boutiques
cybersecurity platforms and the big tech players — continued • Intensifying focus on all aspects of AI, including at the moment, but we’re definitely seeing
to focus on expanding the breadth and reach of their solutions automating of activities in order to identify and the larger platform players winning a lot of
to improve their value propositions to clients. With respond to risks faster. the work. With the number of big players
cybersecurity activities increasingly consolidated within larger
throwing their hats into the ring, it’s going
platforms, it is becoming increasingly challenging for niche • Continued focus on building out platform-based
to be difficult for some of the smaller
cybersecurity players to gain attention and the funding needed cybersecurity models. players to be able to remain niche. More
to scale and grow. This could drive further consolidation in the
• Increasing consolidation as big players look to likely, we’ll see some looking to sell while
space over time as struggling smaller players look to sell.
others simply fade away.
gain new capabilities and niche platforms
Regulations shining a spotlight on cybersecurity
struggle and look to sell.
Evolving regulations continued to shine a spotlight on
• Growing focus on code security and ensuring
cybersecurity during H1’24, although direct VC, PE, and M&A
investment remained somewhat soft globally. In the EU, the the security of APIs.
Digital Operations and Resilience Act (DORA) — which is • Ongoing evolution of cybersecurity regulations
aimed specifically at enhancing the operational and IT security
and general regulations with cybersecurity
of banks and financial institutions — will come into force in
January 2025.11 A recent gap analysis performed by KPMG, impacts driving interest and investment in
showed that across the EU financial sector, only one-third related solutions.
(32 percent) of regulated entities, comply with all its • Managed services providers increasingly
requirements.12 This is driving affected companies to look for Charles Jacco
looking to embrace automation, either by
solutions able to help them comply and cybersecurity firms and Financial Services Cybersecurity Lead
platforms to focus their efforts on providing solutions that align acquiring automation platforms or partnering KPMG International
with shifting regulations. with large technology companies. Principal, Information Protection and
Cybersecurity Financial Services Lead
KPMG in the US
11. European Securities and Markets Authority (ESMA). "Digital Operational Resilience Act (DORA)." (16 January 2023).
12. KPMG International. "Decoding DORA for European banks." (6 May 2024).
#fintechpulse
21
Author: Leon Ong, Partner, Financial Services Advisory, KPMG in Singapore
Wealthtech investment off to a quiet start in H1’24; interest in AI-enablement rises

Total global funding activity (VC, PE and M&A) in wealthtech 2021-2024* Total investment in wealthtech was very subdued in H1’24, with only marginal levels
of investment seen globally. The VC market in the US saw a $63.8 million raise by
$1.0 70
investment management company Edward Jones, but otherwise investors in the
62
$0.9
wealthtech space held back from making major deals in H1’24 or focused on
59
60 internal innovation activities.
$0.8
Key H1'24 highlights from the wealthtech sector include:
$0.7 50
AI opportunities taking center stage
$0.6 AI was top of mind for many in the wealthtech space during H1’24 as both investors
37 40
and corporates looked to understand how AI can play a role in enhancing wealth
$0.5 management, particularly in terms of extending the capabilities of wealth managers
30 and the products that they can offer. While many AI applications in the wealthtech
$0.4
space have focused on enhancing back-office activities to date, there is growing
$0.3 18 interest in the use of AI to support data analytics, to enhance robo advisory
20
services, and to automate investment processes.
$0.2
Self-directed wealth management becoming a key focus
10
$0.1 Globally, investors have increasingly focused on the provision of self-directed
$0.9 $0.8 $0.2 $0.1 wealth management platforms and tools to enable individual investors — ranging
$0.0 0
from the digitally savvy to those with smaller amounts of wealth — to become more
2021 2022 2023 2024*
active in the wealth management space. This trend has been particularly noticeable
Deal value ($B) Deal count in Asia, where self-directed investment platforms are viewed as a means of
democratizing wealth management activities.
#fintechpulse
22
Increasing convergence of wealthtech with other While H1’24 has been relatively quiet
sectors What to watch for in H2’24 from an investment point of view, digital
wealth management platforms continue to
Recently, there has been an interesting convergence • Successful wealth management companies grow. There haven’t been any significant
between wealthtech and healthtech, driven in part by continuing to grow significantly and to look more high-profile failures in the space, which
insurance companies looking to gamify insurance like banks. bodes well for investment in the space
products. For example, a number of health tracking apps long term. Given the explosion of AI
• AI use cases increasingly targeting direct
have integrated mechanisms to provide savings, interest more broadly, it’s not surprising
interactions with customers, including the that there are a lot of investors interested
discounts, and other rewards to their users. provision of investment advice. in how AI can play a role in the evolution
ESG remains a focus for wealthtech investors • Wealthtechs taking a leading role in changing of wealth management — and looking out
for wealthtechs offering AI-powered
Globally, there continued to be interest in ESG-related the face of socially responsible investing.
solutions.
wealth management products and solutions from
individual investors, particularly high net worth individuals
looking to make ESG investments. The EMEA region
continued to lead the way on the ESG front, with a
number of large incumbents focused on enabling people
to make philanthropic investments and investments in
environmentally sustainable technologies or in socially
responsible companies.
Leon Ong
Partner, Financial Services Advisory
KPMG in Singapore
#fintechpulse
23
Authors: Debarshi Bandyopadhyay, Director, Financial Services, KPMG in Singapore and Kenji Hoki, Director, Financial Services, KPMG in Japan
Investment in crypto and blockchain stabilizing; deal volume up

Total global funding activity (VC, PE and M&A) in blockchain and cryptocurrency After faltering significantly in 2023, global investment in crypto and blockchain stabilized quite
2021-2024*
a bit in H1’24, accounting for $3.2 billion in investment globally. Large megadeals remained
$35 2,500 elusive compared to historical trends, with only five deals over $100 million — all in the VC
2,203 space: UK-based Revolut raised $139 million, while Hong Kong-based Hashkey Group,
2,124
$30 US-based Berachain, UK-based MAR mining, and US-based EigenLayer each raised
2,000 $100 million.
$25 While deal sizes in the crypto and blockchain space were relatively small, deal volume
remained good, with 677 deals completed during H1’24 — well on pace to exceed the number
1,500 of deals seen last year by a solid margin.
$20 1,268
Key H1’24 highlights from the crypto and blockchain space include:
Increasingly interconnected ecosystem between trad-fi and de-fi
$15
1,000
During H1’24, the lines between trad-fi and de-fi began to blur. In the US, traditional financial
677 instruments — such as bonds and treasury bills — were tokenized13 and brought into the de-fi
$10
world, while crypto assets were wrapped in traditional financial infrastructure to improve
500 investor confidence and enhance investment opportunities. Investors such as MiddleGame
$5 Ventures, that already invested earlier in Keyrock and Ripple, raised a new fund with targeted
EUR150 million to invest in startups at the intersection of blockchain and capital markets.14
$30.8 $22.3 $8.5 $3.2
$0 0
2021 2022 2023 2024*
Source: Pulse of Fintech H1'24, Global Analysis of funding in Fintech, KPMG International (data provided by PitchBook), *as of 30 June 2024. 13. Coindesk. “Over $1B in U.S. Treasury notes has been tokenized on public blockchains.” (28 March 2024).
14. Sifted. “Fintech firm MiddleGame Ventures raises €55m of targeted €150m fund.” (25 June 2024).
#fintechpulse
24
The SEC’s approval of the Bitcoin ETFs is

quite a significant move on the crypto
front. The ETF structure provides investors
EMEA and ASPAC leading on digital currencies Blockchain infrastructure continues to evolve: with exposure to bitcoin without having to
and digital asset tokenization Blockchain technology has been overshadowed directly buy or store cryptocurrencies.
somewhat by AI this year, although there continued to Investors can use their traditional risk
While the US focused primarily on cryptocurrency
methods and their traditional tax and
regulation in H1’24, the EMEA and ASPAC regions be a focus on embracing blockchain technologies for
advisory structures around that, while
focused more heavily on the development and launch of fraud detection, cybersecurity, and similar solutions.
still getting exposure to bitcoin. It’s been a
digital currencies and real- world digital asset While it is a much smaller amount than in 2021 and big move — and one that has brought a lot
tokenization. During H1’24, the Hong Kong Monetary 2022, investors are still putting money into these types of traditional investors — and a lot of
of enterprise solutions. money — into the crypto space.
Authority launched the next phase of its e-HKD pilot
project,15 while the European Central Bank (ECB)
published a report on its progress towards a digital euro
as part of its preparation phase which lasts until October
2025. The ECB outlined work conducted in designing
privacy standards to make online and offline digital
payments as close as possible to cash transactions, and
in addressing other contentious topics such as holding
limits and compensation for payment service
providers.16
Debarshi Bandyopadhyay
Director, Financial Services
Blockchain & Crypto
KPMG in Singapore
15. Hong Kong Monetary Authority. “Central Bank Digital Currency (CBDC).” (26 June 2024).
16. European Central Bank. “Progress on the preparation phase of a digital euro - First progress report. European Central Bank.” (2024).
#fintechpulse
25
A number of jurisdictions in the ASPAC

region have been working on regulating
crypto for some time. Major hubs like
SEC’s approval of Bitcoin ETFs drives interest into Japan, Singapore, and Hong Kong (SAR)
crypto space What to watch for in H2’24 in particular have been working to balance
• Growth of real-world asset tokenization, especially innovation and regulation in a way that
Early in H1’24, the Securities Exchange Commission
with respect to traditional financial instruments. protects investors rights — especially retail
approved a number of spot Bitcoin ETFs,17 which has led to investors.
quite a significant flow of institutional money into the space • More digital currencies, including CBDCs, tokenized
through mainstream financial instruments. Spot Ethereum deposits, and regulated stablecoin becoming
ETFs are also well positioned to be approved during H2’24.
mainstream over the next six to twelve months.
• Increasing interest in Web3, with the ASPAC region
leading on crypto.
• Rising cryptocurrency valuations as more traditional
structures are put into place around them.
• Growing investment in blockchain-based solutions,
particularly enterprise blockchain solutions related
to digital identity management — which have now
been tried and tested.
Kenji Hoki
Director, Financial Services
KPMG in Japan
17. U.S Securities and Exchange Commission. “Statement on the approval of spot Bitcoin Exchange-Traded Products.” (10 January 2024).
#fintechpulse
26
Global insights | Fintech segments Regional insights
#fintechpulse
27
Author: Robert Ruark, Principal, Financial Services Strategy and Fintech Lead, KPMG in the US
Fintech investment in the Americas weakens slightly despite increase in deal volume
Total fintech investment in the Americas fell slightly — from $38.5 billion in H2’23 to $36.7 in H1’24 — although the number of fintech deals rose from 1,066 to 1,123 over the same
period. Given the high-interest-rate environment, geopolitical uncertainty, and lingering valuations challenges, fintech investors showed a subdued appetite for making the largest
deals. Growth stage VC investment was particularly weak in H1’24, with just $1.6 billion, compared to over $10.5 billion during all of 2023.
Key H1’24 highlights from the Americas include:
US attracts majority of fintech investment in Canada sets new record for fintech investment in Valuations gap persists in VC and PE space
Americas H1’24 as investment Within the Americas, the high-interest-rate environment
The US accounted for $27.4 billion of the $36.7 billion in Outside of the US, fintech investment in Canada was combined with a continued gap in valuations and the
fintech investment seen in the Americas during H1’24, particularly notable in H1’24, reaching a record high of search for quality assets kept VC and PE investment in
including the $12.5 billion acquisition of Worldpay by $7.8 billion for a six-month period. Two deals accounted fintech somewhat soft during H1’24. On the M&A front,
GTCR, the $4 billion buyout of B2B customer for the bulk of this funding — the $6.3 billion acquisition the focus of deals has shifted somewhat in H1’24;
engagement platform EngageSmart by Vista Equity of payments firm Nuvei by Advent International and the whereas in 2023 a number of larger organizations looked
Partners,18 the $930 million acquisition of financial $1 billion buyout of revenue solutions firm Plusgrade by to divest underperforming parts of their business in order
research firm Tegas by AlphaSense,19 and the General Atlantic.20 While fintech remains a big ticket for to concentrate on their core, the first half of 2024 saw
$685 million VC raise by capital markets platform investors in Brazil, investment in H1’24 was quite weak, companies looking at opportunities to make smaller
company Clear Street. with just $616 billion in investment compared to acquisitions aimed at enhancing their capabilities in
$1.8 billion in H2’23. specific areas.
18. Business Wire. “Vista Equity Partners completes acquisition of EngageSmart. (26 January 2024).
19. PR Newswire. “AlphaSense Completes Acquisition Of Tegus.” (8 July 2024).
20. Business Wire. “General Atlantic announces investment in PlusGrade, joining existing investor CDPQ.” (4 March 2024).
#fintechpulse
28
Growing interest in taking fintechs private We’re still seeing decent M&A activity in
Trends to watch for in H1’24 the fintech space, but it’s lower than prior
During 2021 and 2022, there was a significant amount of years. Compared to 2023, when larger
IPO activity in the fintech space, including a number of • Additional consolidation in the payments space, companies were looking to divest some of
fintechs going public via SPAC mergers. Since that time, a particularly niche fintechs being acquired by more their non-core assets, now we’re seeing
number of these companies have struggled given the mature fintechs looking to grow and scale. them looking to make smaller, more
challenging market environment. This has led to growing targeted acquisitions in order to enhance
interest in taking companies that went public early private • Regulators increasing their attention on issues like
their capabilities, such as their product set
again. During H1’24, the largest of these take-private deals data protection and privacy, particularly in the US. or market reach. The focus has definitely
was Nuvei – which was taken private by Advent shifted from ‘we need to get back to doing
• Wealthtech investments focusing more on B2B
International for $6.3 billion. what we do really well’ to ‘maybe there’s
support fintechs rather than on D2C businesses.
room in some small areas to continue to
• Growing focus on AI enablement, not only in the grow and expand non-organically through
regtech space, but in the insurtech sector as a M&A.
means for assessing risks.
Robert Ruark
Principal, Financial Services Strategy
and Fintech Lead
KPMG in the US
#fintechpulse
29
Overall, dealmaking could be evening out to levels similar to 2023
Total funding activity (VC, PE and M&A) in fintech in the Americas 2021-2024* Venture capital funding activity in fintech in the Americas 2021-2024*
$140 3,707 3,593 4,000 $80 3,098 3,129 3,500
$120 3,500 $70 3,000

3,000 $60 2,500
$100 2,374 2,017
2,500 $50
$80 2,000
2,000 $40
$60 1,500
1,123 1,500 $30 964
$40 $20 1,000
1,000
$20 500 $10 500
$121.9 $96.8 $78.5 $36.8 $70.0 $45.0 $25.8 $9.4
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
M&A activity in fintech in the Americas 2021-2024* PE growth activity in fintech in the Americas 2021-2024*
$60 546 600 $14 71 80
63 64
$50 500 $12
393 $10 60
$40 400
293 $8
$30 300 29 40
$6
$20 130 200
$4 20
$10 100 $2
$40.5 $46.8 $50.9 $26.8 $11.4 $5.0 $1.9 $0.6
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
#fintechpulse
30
Amid quieter dealmaking front, financing metrics suggest dealmakers are still bidding up when needed
VC activity in fintech with corporate participation in the Americas 2021-2024* Quartile post-money (VC, PE and M&A) valuations in the Americas 2021-2024*
$45 944 943 1,000 $180 $168.0
$40 $160
$35 800 $140
$120.9 $130.0
$30 $120
514 600
$25 $100
$20 $80 $94.5
400
$15 249 $60
$44.3 $35.9 $30.6 $49.0
$10 $40
200
$5 $20 $19.8
$39.6 $21.6 $14.5 $4.5 $13.7
$0 $15.0 $14.1
$0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
Deal value ($B) Deal count 25th Median 75th
Median M&A size ($M) in fintech in the Americas 2021-2024* Median pre-money valuations ($M) by stage in fintech in the Americas 2021-2024*
$160
$1,100.0
$140 $139.6
$120
$100 $755.0
$623.0
$80 $67.7
$60
$50.5 $46.8 $276.4
$40 $100.0
$120.0 $60.0
$50.0 $69.3
$20 $48.0 $45.0 $50.0
$0 $9.4 $12.0 $11.9 $16.0
2021 2022 2023 2024*
2021 2022 2023 2024*
Source: Pulse of Fintech H1'24, Global Analysis of funding in Fintech, KPMG International (data provided by PitchBook), *as of 30 June 2024. Pre-seed/Seed Early VC Later VC Venture growth
The 2024 YTD figure for median M&A sizes is based on a non-normative population size. The 2024 YTD figure for the median pre-money valuation at the
growth stage is based on a non-normative population size.
#fintechpulse
31
Dealmaking shows signs of flattening out at a level aligned with historical averages
Total funding activity (VC, PE, M&A) in fintech in the Americas 2021-2024* M&A activity in fintech in the Americas 2021-2024*
$50 1,400 $30 160
$45
1,200 140
$25
$40
120
$35 1,000
$20
100
$30
800
$25 $15 80
600
$20
60
$10
$15 400
40
$10
$5
200
$1.6
20
$29.1
$29.0
$34.2
$29.7
$45.7
$20.5
$10.3
$20.4
$30.2
$18.5
$20.0
$24.0
$12.7
$5
$10.6
$11.7
$26.2
$13.5
$17.3
$13.8
$14.3
$19.5
$9.8
$5.5
$9.9
$8.3
$5.6
$7.3
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024
#fintechpulse
32
VC dealmaking seems to be keeping a steady plateau going
Venture capital funding activity in fintech in the Americas 2021-2024* VC activity in fintech with corporate participation in the Americas 2021-2024*
$25 1,200 $12 350
1,000 300
$10
$20
250
800 $8
$15
200
600 $6
150
$10
400 $4
100
$5
200 $2
50
$10.1
$10.7
$15.6
$17.1
$20.2
$17.1
$17.4
$13.3
$11.4
$3.5
$1.4
$9.4
$9.5
$8.7
$7.1
$2.2
$8.9
$1.8
$2.5
$1.9
$2.5
$4.2
$8.3
$6.1
$4.7
$5.5
$4.2
$5.2
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024
#fintechpulse
33
Top 10 fintech deals in the Americas in H1 2024

2 1. Worldpay — $12.5B, Cincinnati, US — Payments — Buyout
2. Nuvei — $6.3B, Montreal, Canada — Payments — Public-to-private buyout
10 3. EngageSmart — $4B, Braintree, US — Payments — Public-to-private buyout

7 4. Plusgrade — $1B, Montreal, Canada — Institutional/B2B — Buyout
4
3
9 6 5. Tegus — $930M, Chicago, US — Information — M&A
8
1
6. Clear Street — $685M, New York, US — Institutional/B2B — Series B
7. Cadre — $500M, New York, US — Proptech — M&A
8. Corvus — $427M, Boston, US — Insurtech — M&A

5
9. Spiff — $419M, Sandy, US — Institutional/B2B — M&A
10. PayJoy — $360M, San Francisco, US — Payments — Series C
#fintechpulse
34
#fintechpulse
35
Authors: Hannah Dobson, Co-lead Fintech, KPMG in the UK, François Assada, Head of Fintech, KPMG in France and Dave Remue,
Fintech Lead, KPMG in Belgium With the new Labour government in
Fintech investment in EMEA drops to $11.4 billion in H1’24 situ with it’s focus on economic growth,
and the expectation of an interest rate
The EMEA region saw total fintech investment drop considerably in the first half of 2024, falling from $19.1 billion in H2’23 drop in the final quarter of 2024, there
to just $11.4 billion in H1’24 amid continued geopolitical uncertainty and a high-interest-rate environment that kept interest are hopes that UK fintech funding and
in large deals quite muted. The UK saw the largest share of fintech funding in the region during H1’24, attracting the deals market will start to show
$7.3 billion in investment, including the $4 billion buyout of financial software company IRIS Software Group by Leonard signs of recovery. The UK fintech
Green, a $999 million VC round by small-business-focused marketplace platform Abound, and a $621 million raise by market continues to be dominated by
neobank Monzo. The largest deals outside of the UK included the buyout of payments firm Banco BPM Gruppo for the payments sector and the growing
$652 million and the acquisition of Switzerland based e-invoicing company Pagero by Thomson Reuters.21 adoption and use of the services of
Key H1’24 highlights from the EMEA region include: challenger banks. Previously struggling
to gain the trust of customers, these
VC funding shows some resilience Regulations remain key focus in EMEA, particularly challenger banks now lead the way in
Compared to other regions, fintech-focused VC investment in the EU banking innovation and agility, and we
in the EMEA region showed resilience in H1’24, with expect their growth to continue.
The EMEA region continued to see the regulatory
$5.4 billion in investment. This resilience was likely helped environment evolve in H1’24, particularly in the EU. The EU
by small increases in VC investment in the UK, Germany, Parliament approved landmark legislation with the AI Act in
Nordics region, and Ireland. The region saw increasing March 2024; the new regulation will apply later in 2026, with
interest in early-stage deals as investors showed more some exceptions for specific provisions.22 Crypto was a
optimism than they have in recent months. This optimism particular focus, given the EU’s Markets in Crypto Assets
extended to the possibility of the IPO market reopening in (MiCA) regulation is set to come into effect in June 2024.23
H2’24, although any sustained opening would likely occur MiCA will require that crypto companies — such as
after the US presidential election. exchanges, wallet providers, and coin issuers — obtain a Hannah Dobson
license to operate in order to conduct operations in the EU. Partner and Fintech Lead
The regulatory environment could drive renewed interest KPMG in the UK
into the blockchain and crypto space as a result of growing
regulatory confidence.
21. Thomson Reuters Corporation. “Thomson Reuters Successful acquisition of Pagero paves the way for significant growth opportunities.” (26 February 2024).
22. European Parliament. “Artificial Intelligence Act: MEPs adopt landmark law.” (13 March 2024).
23. Eurofi. “Crypto regulation: MiCA implementation and global convergence.” (n.d.).
#fintechpulse
36
When it comes to AI, on one side of the

spectrum, the larger banks and
financial institutions are well positioned
to be winners given their access to data
B2B-focused fintechs attracting attention in EMEA
and a much more structured
During H1’24, B2B-focused fintech companies were of particular Trends to watch for in H2’24 organization. On the other side of the
interest to fintech investors across EMEA, likely in part driven by • Wealthtech gaining more attention, particularly spectrum, start-up/scale-up fintechs
their ability to produce recurring revenues. Deals in the space from big banks and investors looking to fill have progressively embedded AI in
gaps. their delivery model to demonstrate
ranged quite broadly, with a number attracting international
• Large financial institutions and fintechs looking their ability to improve their economics.
investors. During H1’24, for example, France-based accounting In the middle, smaller banks and
software firm Pennylane raised $43 million in VC funding from to leverage AI to drive operational efficiencies
and cost reductions. financial institutions could very quickly
investors, including Sequoia Capital and DST Global;24 the raise find themselves lagging behind and this
earned the company unicorn status. • Growing focus on AI-driven regtech and could be an additional factor to
cybersecurity solutions, including in areas like consider for further consolidation in the
UK-based fintechs taking different approaches to KYC and AML and fraud prevention. sector, especially in the context of
international growth • An increasing focus on open banking and open regulatory harmonization across
finance in the UK following the general Europe and more national barriers
A number of mature fintechs in the UK have targeted
election. being erased.
international expansion as a means to drive growth; however,
• Potential increase in IPO activity, although any
these activities have been relatively hit or miss given the unique
major rebound will likely hold off until 2025.
differences in banking practices in various target countries. This
• Growing interest in blockchain and crypto as
has led some mature fintechs, including Starling Bank and Oak
startups mature and evolving regulatory
North, to pursue other avenues for international expansion, environment provides more confidence to
including selling their technology internationally as banking investors.
SaaS platform plays.
François Assada
Partner, Head of Fintech
KPMG in France
24. Tech.eu. “Parisian fintech Pennylane raises €40M at €1B valuation.” (8 February 2024).
#fintechpulse
37
Dealmakers continue to close deals, but at a still-cautious pace
Total funding activity (VC, PE and M&A) in fintech in EMEA 2021-2024* Venture capital funding activity in fintech in EMEA 2021-2024*
$90 2,637 3,000 $35 2,500

2,588 2,169 2,167
$80 $30
2,500 2,000
$70
$25
$60 1,747 2,000 1,427
$20 1,500
$50
1,500
$40 $15 1,000
$30 689 1,000 569
$10
$20 500
500 $5
$10 $76.5 $50.6 $27.0 $11.4 $29.6 $29.0 $12.9 $5.4
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
M&A activity in fintech in EMEA 2021-2024* PE growth activity in fintech in EMEA 2021-2024*
$50 500 $8 62 70
412 $7 56
60
$40 359 400
$6 50
279 41
$30 300 $5
40
$4
$20 200 30
$3 18
102 20
$2
$10 100
$1 $0.4 10
$44.4 $18.7 $6.7 $5.6 $2.5 $3.0 $7.5
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
#fintechpulse
38
Valuations hold steady or inch back up, suggesting some adaptation
VC activity in fintech with corporate participation in EMEA 2021-2024* Quartile post-money (VC, PE and M&A) valuations in EMEA 2021-2024*
$20 624 616 700 $70
600 $60 $57.6 $60.0 $62.7
$15 500 $50
363
400 $40 $40.0
$10
300 $30
168 $16.6
200 $20 $15.4
$5 $14.3 $16.1
100 $10 $5.9 $6.0
$12.2 $15.5 $5.9 $5.2 $6.2
$2.2 $0
$0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
Median M&A size ($M) in fintech in EMEA 2021-2024* Median pre-money valuations ($M) by stage in fintech in EMEA 2021-2024*
$70
$108.1
$60.3
$60
$50 $82.2
$78.9
$43.0
$40
$34.5 $38.7
$30
$28.8 $46.0
$20 $29.1
$19.5
$10 $11.1 $11.7 $19.0
$11.0
$12.2
$5.6
$0 $6.3 $7.1 $5.4
2021 2022 2023 2024* 2021 2022 2023 2024*
The median M&A size for 2024 YTD is based on a non-normative population size. The 2023 venture growth figure for median pre-money valuations is based on a Pre-seed/Seed Early VC Later VC Venture growth
non-normative population size; all 2024 YTD medians are likewise.
#fintechpulse
39
Dealmaking continues to lose momentum, yet outlier deals can occur
Total funding activity (VC, PE and M&A) in fintech in EMEA 2021-2024* M&A activity in fintech in EMEA 2021-2024*
$30 900 $25 120
800
$25 100
$20
700
$20 600 80
$15
500
$15 60
400
$10
$10 300 40
200
$5
$5 20
$1.5
100
$1.0
$0.9
$0.7
$14.1
$28.5
$16.2
$19.6
$12.2
$19.8
$13.8
$21.0
$11.7
$9.9
$6.8
$4.4
$3.5
$5.4
$3.4
$8.1
$7.2
$4.6
$9.3
$2.6
$3.8
$3.0
$4.1
$4.1
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024
#fintechpulse
40
Outlier deals help skew Q2 VC invested tallies
Venture capital funding activity in fintech in EMEA 2021-2024* VC activity in fintech with corporate participation in EMEA 2021-2024*
$12 800 $7 250
700
$6
$10
200
600
$5
$8
500
150
$4
$6 400
$3
100
300
$4
$2
200
50
$2
$0.6
$1
$0.5
100
$10.4
$1.0
$3.3
$3.1
$3.5
$2.3
$5.8
$5.0
$2.9
$1.9
$1.8
$2.6
$1.6
$2.6
$7.1
$8.7
$7.0
$6.9
$9.3
$5.9
$3.4
$3.3
$3.2
$3.8
$1.6
$3.9
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024

#fintechpulse
41
Top 10 fintech deals in EMEA in H1 2024
1. IRIS Software Group — $4B, Slough, UK — Institutional/B2B — Secondary

4 buyout
1 10
8
5 2. Abound — $999.6M, London, UK — Consumer finance — Series B
7
3. Banco BPM Gruppo — $652.6M, Milan, Italy — Payments — Corporate
2 divestiture
6 3
4. Monzo — $621M, London, UK — Banking — Series I
9
5. Pagero — $429M, Gothenburg, Sweden — Institutional/back-office — M&A
6. Flagstone — $174.85M, London, UK — Back-office — PE growth
7. Pliant — $163M, Berlin, Germany — Payments — Series A
8. Revolut — $139.4M, London, England — Payments — Late-stage VC
9. Voxel — $127.8M, Barcelona, Spain — Institutional/back-office — M&A
10. Cloover — $114M, Stockholm, Sweden — Institutional/B2B — Seed
#fintechpulse
42
#fintechpulse
43
Authors: Andrew Huang, Head of Fintech, KPMG China and Daniel Teper, Head of Fintech, KPMG Australia
A number of financial institutions in China
Fintech investment in ASPAC drops to $3.7 billion; Q2’24 slowest quarter since Q3’17 have introduced AI-driven applications,
such as digital customer service
Fintech investment in the ASPAC region dropped from $4.6 billion in H2’23 to $3.7 billion in H1’24, despite a small uptick providers and AI robots to help answer
in deal volume from 406 to 438 deals over the same time frame. Much smaller deal sizes accounted for this decline; the questions. Some have also started to use
largest deals in the region during H1’24 included a $280 million raise by China-based capital markets solutions firm Yi’an generative AI internally to help with the
Enterprise, a $209 million raise by India-based personal loan platform KreditBee, a $195 million raise by Thailand-based compilation of computer code for
digital financial solutions company Ascend, and $150 million raises by China-based ESG financial solutions platform software design and other limited use
MioTech and Australia-based performance management firm Camms. cases. During H2’24, we’ll likely continue
to see these kinds of activities grow,
Key H1’24 highlights from the Asia-Pacific region include: many with the help of fintechs, but it will
Fintech investment in ASPAC slows across the board Despite investment lull, innovation in financial services likely take time before any applications
as uncertainty remains high still a priority in China really mature.
Following broader investment trends in the region, fintech Investment in China remained quite subdued compared to
investment in ASPAC remained weak in H1’24, with total historical trends, with only $624 million in total investment
investment declining in China, India, Singapore, Australia, during H1’24, compared to $754.6 million in H2’23. Despite
and Japan. M&A and PE investments were particularly soft the lull in fintech-focused VC, PE, and M&A investment,
in the region during H1’24, with M&A accounting for just financial services continued to be a key priority for China’s
$300 million in deal value and PE accounting for just central government, with five subsectors identified as
$7.8 million. Fintech investors remained quite cautious — priorities: technology finance, green finance, inclusive
particularly corporates, which leaned heavily towards cost finance, pension finance, and digital finance.25 As part of
and risk management during the quarter rather than on this Five Finance strategy, China’s central government is
fintech investment. working to encourage financial institutions to support Andrew Huang
startups in these spaces — which could lead to additional Head of Fintech
investments over time. ESG finance came under the KPMG China
spotlight somewhat in H1’24 given the $150 million raise by
ESF finance company MioTech.26
25. National Financial Regulation Administration (NFRA). “Promoting high-quality financial development and boosting Asian financial cooperation.” (n.d.).
26. Times of Startup “MioTech completes funding round to solidify APAC Climate Tech leadership” (26 January 2024).
#fintechpulse
44
Fintechs focusing on AI value propositions; solutions A number of jurisdictions within the

still nascent Trends to watch for in H2’24 ASPAC region are four or five years
behind markets like the US and UK in
AI continued to grow on the radar of both fintech investors • Regulators within the region intensifying their focus terms of fintech market maturity. We
and fintechs, following a trend seen broadly both across on data security and privacy. simply don’t have as many larger, more
ASPAC and globally. During H1’24, the AI focus came
mature fintech players — which has likely
predominantly from traditional financial institutions looking • Fintechs in the region looking for new geographies
put a bit more stress on the ecosystem.
to leverage AI to drive operational improvements and in which to grow, including areas like the Middle Once the market does reopen, the
efficiencies. Fintechs in the region have also enhanced the East, Latin America, and parts of Southeast Asia. companies that have survived will be well
emphasis of any AI components of their solutions and positioned to grow quickly, however, as
offerings, although many of these solutions remain quite • Increasingly mature generative AI and AI
they’ll have proven the sustainability of
nascent, with more sophisticated applications yet to come. applications tailored to the financial services sector.
their business models under quite
Business model sustainability becoming a critical • A number of mature fintechs considering IPO exits challenging circumstances. At the back
focus for fintech investors as IPO markets begin to open up in H2’24 or H1’25. end, we’ll have a much stronger market
and fintechs as a result.
Prior to 2023, the fintech market in ASPAC was fairly frothy, • A continued shift from empire building to empire
even in smaller markets; in Australia, for example, a
consolidating within the most mature fintech
number of neobanks and other fintechs were able to raise
subsectors, including payments.
money quite easily. Over the last year, however, with the
cost of capital rising and investors growing more
conservative with their investments, the sustainability of
these companies has come intense scrutiny. This has
driven an increasing interest in consolidation, some fintechs
choosing to pivot away from their initial value propositions, Daniel Teper
and investors narrowing their funding to companies they Partner, M&A and Head of Fintech
KPMG Australia
believe can be profitable and sustainable long term.
#fintechpulse
45
Dealmaking slides again after a slow 2023
Total funding activity (VC, PE and M&A) in fintech in ASPAC 2021-2024* Venture capital funding activity in fintech in ASPAC 2021-2024*
$60 1,834 2,000 $25 1,664 1,800

1,587 1,432 1,600
$50 $20
1,500 1,400
$40 1,200
985 $15 864 1,000
$30 1,000
800
$10
$20 438 402 600
500 400
$10 $5
$3.8 200
$30.1 $50.3 $12.5 $22.3 $14.8 $10.9 $3.5
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
M&A activity in fintech in ASPAC 2021-2024* PE growth activity in fintech in Asia Pacific 2021-2024*
$40 145 160 $3,000 26 30

129 25
$35 140
$2,500 25
$30 103 120
$2,000 18 20
$25 100
$20 80 $1,500 15
$15 60
$1,000 10
31 5
$10 40
$500 5
$5 20
$5.3 $33.9 $1.3 $0.3 $2,483.5 $1,646.1 $321.2 $7.8
$0 0 $0 0
2021 2022 2023 2024* 2021 2022 2023 2024*
Deal value ($B) Deal count Deal value ($M) Deal count
#fintechpulse
46
Sample sizes are small, yet some deals can still close at robust levels
VC activity in fintech with corporate participation in ASPAC 2021-2024* Quartile post-money (VC, PE and M&A) valuations in ASPAC 2021-2024*
$14 715 800 $120
700 $111.1
$12 605 $100
600 $84.4
$10 $83.5
500 $80
$8 $72.5
400 $60
$6 315
300 $45.6
171 $40
$4 200 $23.1 $22.1
$2 $20 $15.7
100 $7.5 $8.2 $13.6
$13.0 $8.4 $7.3 $1.8 $5.7
$0 0 $0
2021 2022 2023 2024* 2021 2022 2023 2024*
Median M&A size ($M) in fintech in ASPAC 2021-2024* Median venture pre-money valuations ($M) by stage in fintech in ASPAC 2021-2024*
$30
$27.9
$25 $574.0
$432.0
$20
$16.5 $341.7
$15
$289.9
$10 $10.0
$9.9
$5 $75.0
$43.5 $40.6 $16.7 $15.3 $49.2
$11.6 $28.8
$0
2021 2022 2023 2024* $4.8 $6.9 $6.6 $11.0
2021 2022 2023 2024*
The median M&A size for 2024 YTD is based on a non-normative population size. The median pre-money valuations for venture growth for 2022 and 2023 Pre-seed/Seed Early VC Later VC Venture growth
are based on a non-normative population size; likewise are all 2024 YTD figures.
#fintechpulse
47
Even after a muted 2023, deals slide even further
Total funding activity (VC, PE and M&A) in fintech in ASPAC 2021-2024* M&A in fintech in ASPAC 2021-2024*
$40 600 $35 60
$35
$30
500 50
$30
$25
400 40
$25
$20
$20 300 30
M&A activity in fintech in Asia Pacific $15

2020—2024*
$15
200 20
$10
$10
100 10
$3.5
$3.2
$3.3
$2.8
$2.5
$5
$2.2
$1.8
$2.0
$5 $2.1
$30.6
$11.9
$36.8
$0.1
$0.5
$0.7
$4.0
$0.7
$0.5
$0.2
$0.4
$0.2
$0.4
$0.1
$0.2
$7.4
$6.9
$7.8
$4.7
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024
#fintechpulse
48
VC financing activity shows only consistency across the fintech ecosystem
Venture capital funding activity in fintech in ASPAC 2021-2024* VC activity in fintech with corporate participation in ASPAC 2021-2024*
$9 600 $6 250
$8
500 $5
200
$7
$6 400 $4
150
$5
300 $3
$4
M&A activity in fintech in Asia Pacific
100
2020—2024*
$3 200 $2
$2
50
100 $1
$1
$1.5
$2.0
$4.8
$4.8
$3.2
$2.6
$1.4
$1.3
$3.3
$2.1
$1.0
$1.0
$0.8
$1.0
$3.3
$2.8
$4.1
$7.0
$7.8
$5.7
$4.3
$2.6
$2.2
$4.4
$2.2
$1.5
$1.9
$1.6
$0 0 $0 0
2021 2022 2023 2024 2021 2022 2023 2024

#fintechpulse
49
Top 10 fintech deals in ASPAC in H1 2024

1. Yi’an Enterprise — $280.9M, Shanghai, China — B2B/information —
Series B
1 2. KreditBee — $209.4M, Bengaluru, India — Lending — Series D

10
4 3. Ascend (Holding Company) — $195M, Bangkok, Thailand —
Institutional/B2B — Late-stage VC
7 8
4. MioTech — $150M, Shanghai, China — AI — Series C
3
9 2
5. Camms — $150M, Melbourne, Australia — Institutional/B2B — Add-on
6. Bridgit — $139.6M, Sydney, Australia — Proptech — Series A
7. Hashkey Group — $100M, Hong Kong (SAR) — Blockchain/crypto —

Series A
8. LongBridge Security — $100M, Hong Kong (SAR) — Institutional — Late-

6 stage VC
5
9. SwiffyLabs — $100M, Bengaluru, India — Lending/payments — Add-on
10. Guosheng Inclusive Finance — $90.45M, Qingdao, China — Lending —

Early-stage VC
#fintechpulse
50
Global insights | Fintech segments | Regional insights
The financial services industry is transforming with

the emergence of progressive new products,
channels and business models. This wave of
change is driven primarily by evolving customer
expectations, digitalization as well as continued
regulatory and cost pressures.
KPMG firms are passionate about supporting

clients to successfully navigate this transformation,
mitigating the threats and capitalizing on the
opportunities.
KPMG fintech professionals include partners and

staff in over 50 fintech hubs around the world,
working closely with financial institutions and
fintech companies to help them understand the
signals of change, identify the growth opportunities,
and develop and execute their strategic plans.
Visit kpmg.com/financialservices
#fintechpulse
51
KPMG firms recognized as one of the KPMG firms recognized as an M&A KPMG ranks #1 across multiples
“2023 World’s Best Management Innovator by ALM Pacesetter Research categories in risk consulting in the
Consulting Firms” in Banks, Insurances Source Perceptions of Risk Firms 2023
KPMG was recognized for M&A services in the ALM
and Financial Institutions by Forbes report
Pacesetter Research: M&A Services 2022-2023
KPMG firms have been recognized by Forbes as report. ALM Intelligence reviewed over 70 global KPMG firms have received top rankings across
one of the “2023 World’s Best Management professional services firms and named KPMG firms multiple categories in the Source client perceptions
Consulting Firms,” receiving stars in all 27 industries as an M&A Innovator, a distinction given to only one- study: Perceptions of Risk Firms 2023. According to
and categories, including Banks, Insurances and third of firms. the client perception survey, KPMG leads as the top
Financial Institutions. Forbes awarded KPMG firm for being first choice in “financial risk” and “third
ALM also named KPMG firms top five in the
Financial Services professionals with a top five-star party assurance,” and is ranked first for client
business model and brand eminence categories,
rating, for being “very frequently recommended” by advocacy in risk.
indicating strengths adapting core capabilities to
thousands of customers and consultants in
evolving client needs and generating quality insights, Additionally, the report indicates that KPMG is the
numerous countries around the globe.
research and marketing. top firm for “competitive resilience in risk consulting”
The annual ranking recognizes KPMG firms for its and is among the top scorers for quality in “cyber
capabilities in delivering insights-driven consulting security” by clients.
services to commercial and public sector clients
across the globe.
#fintechpulse
52
We’d like to acknowledge the contribution of the following individuals across KPMG member firms who assisted in the development of
this publication.
Andrew Huang Daniel Teper James Brennan Ram Meon
Head of Fintech Partner, M&A and Head of Fintech Managing Director, Financial Due Diligence Global Lead, Deal Advisory, Insurance
KPMG China KPMG Australia KPMG in the US Partner
E: [email protected] E: [email protected] E: [email protected] KPMG in the US
E: [email protected]
Anna McFarlane Dave Remue Karim Haji
Partner, Financial Services Director, Head of Fintech, Advisory Global Head of Financial Services Robert Ruark
KPMG in New Zealand KPMG in Belgium KPMG International Principal, Financial Services Strategy and
E: [email protected] E: [email protected] E: [email protected] Fintech Lead
KPMG in the US
Anton Ruddenklau Debarshi Bandyopadhyay Kenji Hoki
Global Head of Fintech and Innovation Financial Director, Financial Services Director, Financial Services
Services Blockchain and Crypto KPMG in Japan Samantha Dann
KPMG International KPMG in Singapore E: [email protected] Manager, Global Program Delivery
E: [email protected] E: [email protected] KPMG International
Leah Fegan
Charlie Jacco Eric West Director, Global Marketing, Financial Services
Financial Services Cybersecurity Lead KPMG Director, Deal Advisory and Strategy KPMG International Timothy Johnson
International KPMG in the US E: [email protected] Global Head of Deal Advisory,
Principal, Information Protection and Cyber E: [email protected] Financial Services
Leon Ong
Security Financial Services Lead KPMG International
François Assada Partner, Financial Services, Advisory
KPMG in the US Partner, Advisory,
Partner, Head of Fintech KPMG in Singapore
E: [email protected] Transaction Services Leader
KPMG in France E: [email protected]
KPMG in the US
Chris Steele E: [email protected]
Matteo Musso E: [email protected]
Partner, Banking Risk and Regulation
Hannah Dobson Associate Director, Risk Services,
KPMG in the UK
Partner and Fintech Lead Banking & Capital Markets
KPMG in the UK KPMG Australia
Courtney Trimble E: [email protected] E: [email protected]
Global Lead, Payments
Ilanit Adesman Navon Priti Mishra
KPMG International
Partner, Head of Insurance and Fintech Director, Financial Services
Principal, Financial Services
KPMG in Israel KPMG in New Zealand
KPMG in the US
E: [email protected] E: [email protected]
#fintechpulse
53
Methodology
The underlying data and analysis for this report (the ‘Dataset’) Fundings received as part of an accelerator program are not Corporate venture capital: Financings classified as corporate
was provided by PitchBook Data, Inc (‘PitchBook’) on 30 June included; however, if the accelerator continues to invest in follow- venture capital include rounds that saw both firms investing via
2024 and utilizes their research and classification methodology on rounds, those further financings are included. established CVC arms or corporations making equity fundings off
for transactions as outlined on their website at balance sheets or whatever other non-CVC method actually
Angel, seed/pre-seed, seed: PitchBook defines financings as
https://pitchbook.com/news/articles/pitchbook-report- employed.
angel rounds if there are no PE or VC firms involved in the
methodologies. The Dataset used for this report considers the
company to date and it cannot determine if any PE or VC firms Corporate/Growth: Corporate rounds of funding for currently
following funding transactions types: Venture Capital (including
are participating. In addition, if there is a press release that states venture-backed startups that meet the criteria for other PitchBook
corporate venture capital) (‘VC’), private equity (‘PE’) funding and
the round is an angel round, it is classified as such. Finally, venture financings are included in the Pulse of Fintech as of
Mergers and Acquisitions (‘M&A’) for the fintech vertical within
if a news story or press release only mentions individuals making March 2018. Growth: Financings tagged as Series E or later or
the underlying PitchBook data. Family and friends, incubator and
fundings in a financing, it is also classified as angel. As for seed, deals involving companies that are at least seven years old and
accelerator type funding rounds are excluded from the Dataset.
when the investors and/or press release state that a round is a have raised at least six VC rounds will be included in this
Due to the private nature of many of the transactions, the Dataset seed financing, or it is for less than $500,000 and is the first category.
cannot be definitive, but is an estimate based on industry-leading round as reported by a government filing, it is classified as such.
Private equity fundings
practice research methodology and information available to If angels are the only investors, then a round is only marked as
PitchBook at 30 June 2024. Similarly, due to ongoing updates to seed if it is explicitly stated. Pre-seed and seed were added as a PitchBook includes both buyout investors, being those that
PitchBook’s data as additional information comes to light, data new type of methodology in the January 2024 edition; details are specialize in purchasing mainly a controlling interest of an
extracted before or after that date may differ from the data within at the report methodologies page on PitchBook’s website. established company (in a leveraged buyout) and
the Dataset. growth/expansion investors, being those that focus on investing
Early-stage VC: Rounds are generally classified as Series A or
in minority stakes in already established businesses to fund
Only completed transactions regardless of type are included in B (which PitchBook typically aggregates together as early stage)
growth. Transaction types include leveraged buyout (‘LBO’);
the Dataset, with deal values for general M&A transactions as either by the series of stock issued in the financing or, if that
management buyout; management buy-in; add-on acquisitions
well as venture rounds remaining un-estimated if this information information is unavailable, by a series of factors, including the
aligned to existing fundings; secondary buyout; public to private;
is not available or reliably estimated. age of the company, prior financing history, company status,
privatization; corporate divestitures; and growth/expansion.
participating investors and more.
Venture capital deals Acquisition financing transactions will be included as of June
Late-stage VC: Rounds are generally classified as Series C or D 2023 if they do not fall under the PE growth transactional
PitchBook includes equity fundings into startup companies from
or later (which PitchBook typically aggregates together as late umbrella.
an outside source. Funding does not necessarily have to be
stage) either by the series of stock issued in the financing or, if
taken from an institutional investor. This can include funding from
that information is unavailable, by a series of factors, including
individual angel investors, angel groups, seed funds, venture
the age of the company, prior financing history, company status,
capital firms, corporate venture firms and corporate investors.
participating investors and more.
#fintechpulse
54
Methodology (cont’d)
M&A transactions verticals, some of which are defined in existing PitchBook verticals, 5. Insurtech — Companies utilizing technology to increase the
PitchBook defines M&A as a transaction in which one company yet others that are not and required a bespoke methodological speed, efficiency, accuracy and convenience of processes
purchases a controlling stake in another company. Eligible approach: across the insurance value chain. This includes quote
transaction types include control acquisitions, leveraged buyouts 1. Payments/transactions — Companies whose business model comparison websites, insurance telematics, insurance domotics
(LBOs), corporate divestitures, reverse mergers, mergers of revolves around using technology to provide the transfer of (home automation), peer-to-peer insurance, corporate
equals, spin-offs, asset divestitures and asset acquisitions. Debt value as a service including both B2B and B2C transfers. platforms, online brokers, cyber insurance, underwriting
restructurings or any other liquidity, self-tender or internal software, claims software and digital sales enabling.
2. Blockchain/cryptocurrency — Companies whose core
reorganizations are not included. More than 50 percent of the business is predicated on distributed ledger (blockchain) 6. Wealthtech — Companies or platforms whose primary
company must be acquired in the transaction. Minority stake technology with the financial services industry and/or relating to business involves the offering of wealth management services
transactions (less than a 50-percent stake) are not included. Small any use case of cryptocurrency (e.g. bitcoin). This vertical using technology to increase efficiency, lower fees or provide
business transactions are not included in this report. As of June includes companies providing services or developing differentiated offerings compared to the traditional business
2023, acquisition financing transactions not covered under the PE technology related to the exchange of cryptocurrency, the model. Also includes technology platforms for retail investors to
growth umbrella will be included. storage of cryptocurrency, the facilitation of payments using share ideas and insights both via quantitative and qualitative
The fintech vertical cryptocurrency and securing cryptocurrency ledgers via mining research.
A portmanteau of finance and technology, the term refers to activities. 7. Regtech — Companies that provide a technology-driven
businesses who are using technology to operate outside of 3. Lending — Any non-bank that uses a technology platform to service to facilitate and streamline compliance with regulations
traditional financial services business models to change how lend money often implementing alternative data and analytics or and reporting as well as protect from employee and customer
financial services are offered. Fintech also includes firms that use any company whose primary business involves providing data fraud.
technology to improve the competitive advantage of traditional and analytics to online lenders or investors in online loans. 8. AI & ML, ESG — These companies are either tagged with
financial services firms and the financial functions and behaviors of 4. Proptech — Companies that are classified as both fintech and fintech and the existing PitchBook vertical of AI & ML, meaning
consumers and enterprises alike. PitchBook defines the fintech who are developing and leveraging technology intended to help they operate within both fintech and employ AI & ML tools,
vertical as “Companies using new technologies including the facilitate the purchase, management, maintenance and funding models, etc. For ESG, this segment was defined utilizing
internet, blockchain, software and algorithms to offer or facilitate into both residential and commercial real estate. This includes existing PitchBook ESG-related verticals (e.g. cleantech) and
financial services usually offered by traditional banks including sub-sectors such as property management software, IoT home the fintech vertical.
loans, payments, wealth or funding management, as well as devices, property listing and rental services, mortgage and
software providers automating financial processes or addressing lending applications, data analysis tools, virtual reality modeling
core business needs of financial firms. Includes makers of ATM software, augmented reality design applications, marketplaces,
machines, electronic trading portals and point-of-sale software.” mortgage technology and crowdfunding websites.
Within this report, we have defined a number of fintech sub-
#fintechpulse
55
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.
kpmg.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to
provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate
in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal
entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure
please visit kpmg.com/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.
Throughout this document, “we”, “KPMG”, “us” and “our” refers to the global organization or to one or more of the member firms of KPMG International Limited
(“KPMG International”), each of which is a separate legal entity.

Pof h1 2024

Uploaded by

Copyright:

Available Formats

Pof h1 2024

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pof h1 2024

Uploaded by

Copyright:

Available Formats

Global analysis of fintech funding

Fintech segments Regional insights

4. Business Wire. “Travelers completes acquisition of Corvus Insurance.” (2 January 2024).

Here are our top predictions for fintech in H2’24.

The payments space will continue to attract the lion’s share of

Regtech will attract additional attention and investment: Regtech

Dealmaking remains subdued at best

$250 8,215 10,000 $140 6,967 8,000

$120 1,104 1,200 $18 160 180

Even amid subdued dealmaking, financing metrics are robust

$50 358 400

$70 2,296 2,174 2,500 $60

Dealmaking momentum could be entering a plateau

$120 3,000 $70 350

VC financing sees first bump in several quarters, in terms of aggregate VC invested

$40 2,500 $20 800

$20 $10 400

Top 10 global fintech deals in H1 2024

2. Nuvei — $6.3B, Montreal, Canada — Payments — Public-to-private buyout

3. IRIS Software Group — $4B, Slough, UK — Institutional/B2B — Secondary

8 8. Clear Street — $685M, New York, US — Institutional/B2B — Series B

9. Banco BPM Gruppo — $652.6M, Milan, Italy — Payments — Corporate

10. Monzo — $621M, London, UK — Banking — SeriesI

Author: Courtney Trimble, Global Lead, Payments, KPMG International

Insurtech funding falls to lowest level in a decade

Total global funding activity (VC, PE and M&A) in insurtech 2021-2024*

Author: Courtney Trimble, Global Lead, Payments, KPMG International

Global investment in regtech strengthens in H1’24

Author: Charles Jacco, Financial Services Cybersecurity Lead, KPMG International

Deal value ($B) Deal count

Author: Leon Ong, Partner, Financial Services Advisory, KPMG in Singapore

Wealthtech investment off to a quiet start in H1’24; interest in AI-enablement rises

Investment in crypto and blockchain stabilizing; deal volume up

Deal value ($B) Deal count

The SEC’s approval of the Bitcoin ETFs is

A number of jurisdictions in the ASPAC

Overall, dealmaking could be evening out to levels similar to 2023

$140 3,707 3,593 4,000 $80 3,098 3,129 3,500

$120 3,500 $70 3,000

$50 1,400 $30 160

VC dealmaking seems to be keeping a steady plateau going

$25 1,200 $12 350

Top 10 fintech deals in the Americas in H1 2024

2. Nuvei — $6.3B, Montreal, Canada — Payments — Public-to-private buyout

10 3. EngageSmart — $4B, Braintree, US — Payments — Public-to-private buyout

7. Cadre — $500M, New York, US — Proptech — M&A

8. Corvus — $427M, Boston, US — Insurtech — M&A

10. PayJoy — $360M, San Francisco, US — Payments — Series C

When it comes to AI, on one side of the

Dealmakers continue to close deals, but at a still-cautious pace

$90 2,637 3,000 $35 2,500

Valuations hold steady or inch back up, suggesting some adaptation

Dealmaking continues to lose momentum, yet outlier deals can occur

$30 900 $25 120

Outlier deals help skew Q2 VC invested tallies

$12 800 $7 250

2021 2022 2023 2024 2021 2022 2023 2024

Deal value ($B) Deal count Pre-seed/Seed

Top 10 fintech deals in EMEA in H1 2024