FT Partners Research is announcing the release of their Q3 2024 FinTech Insights report, providing a review of FinTech deal activity with analysis across private company financings, IPOs, M&A transactions.
The third quarter wrapped up with public markets “at all-time highs,” again, much-awaited interest rate cuts and a “positive US economic outlook.”
Still, a level of “hesitation” hangs in the air with unknown “outcomes of the imminent US presidential election” as well as the ongoing “global armed conflicts.”
The FinTech sector built further momentum in Q3 as it “worked through the ongoing period of recalibration.”
The “bid-ask spread” between entrepreneurs and investors seems to be narrowing as “deals come to fruition.”
In fact, the total number of transactions, across “M&A and financing, rose more than 35% year-over-year.”
Annualizing total FinTech deal volume for the first three quarters of the year implies 2024 “reaching somewhere above the lows of 2023 and 2022, and just under the levels from 2019 and 2020.”
Total deal activity volume has already surpassed “full-year 2023, even when excluding the pending $35 billion merger of Discover and Capital One announced in Q1.”
Private company funding volume appears to be normalizing, recording an average “of $13 billion over the last eight quarters, with Q3 2024 right above that level at $13.5 billion.”
Notable late-stage financing activity “included $1 billion capital raises for wealth management platform FNZ and insurance claims tech solutions provider Sedgwick.”
Further, Revolut reached a valuation “of $45 billion, a $12 billion increase from its valuation in 2021, and Stripe’s valuation rose to $70 billion, though still down from its peak valuation of $95 billion in 2021.”
Taking a look at early-stage activity, so far in 2024, the Financial Management Solutions sector (which includes Office of the CFO solutions) leads as the most active in terms of “number of Series A rounds, while the most money has been poured into Crypto & Blockchain Series A deals, nearly $1.3 billion, as positive sentiment around the future of crypto swells.”
Private equity-led M&A activity continued to strengthen in Q3, ‘with 2024 YTD volume already up more than 60% over the full-year 2023 level.”
The two largest M&A transactions announced in the quarter “were multi-billion-dollar take-private buyouts of R1 RCM and Envestnet.”
Strategic acquisition activity was on the rise as well, with deal count growing 40% over the year-ago period, with “notable acquisitions by Mastercard, Visa, SS&C, Experian and more.”
One US FinTech IPO took place in Q3 – enterprise financial management platform OneStream “raised $490 million in gross proceeds, climbing 70% over its IPO price by the end of Q3 – for a total of nine FinTech IPOs so far this year, globally.”
FT Partners’ data, analytics, and insights on FinTech stem from domain knowledge and the Firm’s database.
The FT Partners Research Team assembles and “curates this information through primary research and it represents years of focus and diligence.”
Selected Recent FT Partners-Advised Transactions are as follows:
- Truebill’s $1.3 billion Sale to Rocket Companies
- Payrix’s ~$800 million Sale to FIS
- Cross River’s $620 million Series D Financing
- Velocity Global’s $400 million Series B Financing
- SpotOn’s $300 million Series F Financing
- Neon’s $300 million Series D Financing
Lendable’s ~$275 million Financing - Payzer’s $250 million Sale to WEX
- CAIS’s $225 million Series C Financing at a $1 billion+ Valuation
- Bilt’s $200 million Financing at a $3.1 billion Valuation
- Newfront’s $200 million Financing
- Accelerant’s $193 million Financing
- Blend’s $150 million Financing
- Capital on Tap’s $110 million Funding
- Nymbus’ $70 million Series D Financing
- Cart. com’s $60 million Series C Financing at a $1.2 billion Valuation
- Thunes’ $60 million Series C Financing
- Route’s $40 million Series C Financing at a $1.4 billion Valuation
- Cover Whale’s $28 million Financing
- Docupace’s Sale to Genstar Capital
- EMS’ Sale to BharCap Partners
- NeuroID’s Sale to Experian
- Acorns’ Acquisition of GoHenry
- Salucro’s Sale to US Bank
- Taulia’s Sale to SAP
