CB Insights has released the State of Fintech Q3’25 Report as part of a collaborative effort with Money20/20. The quarterly breakdown of the trends shaping fintech’s next wave of growth have been unveiled in a comprehensive report.
Some of the main takeaways from the CB Insights Fintech report include the following:
- Fintech funding is flat vs. Q2’25, but capital is concentrating in mega-rounds. Fintech funding hit $10.9B in Q3’25. Deal count declined 9%, mirroring the slowdown in dealmaking across venture. But mega-rounds accounted for 40% of all funding as investors continue to shift toward fewer, larger bets: year-to-date, average and median deal sizes are more than 35% above 2024 levels, even as deal count declines. If this trend continues, smaller competitors may face increased pressure, potentially accelerating consolidation and strategic acquisitions in the sector.
- AI captures nearly one-quarter of fintech funding as agentic solutions gain market traction. Five of the top 10 deals went to AI-powered finance platforms like Ramp and AppZen, positioning AI leaders to widen their competitive gap as AI-first and agentic solutions scale.
- Investors shift to more established fintechs. In Q3’25, mid- and late-stage fintech deal share reached its highest level since 2021 at 22%. As investors look for clearer paths to scale, funding, high valuations, and exits are concentrating among more mature players, potentially limiting opportunities for early-stage startups.
- The recovery in fintech exit activity continues. Fintech exits accelerated in Q3’25, with M&A deals rising 19% to 249 — the highest in more than 3 years — and IPOs for the quarter reaching 15, a 16-quarter high. Digital assets remain a key driver: many of the largest M&A and public offerings were in crypto, underscoring growing institutional interest. The rebound signals growing investor confidence and could spur further consolidation, particularly into crypto-focused fintech.
- Wealth tech maintains momentum, with funding on pace to nearly double 2024 totals and companies ramping up hiring activity. Wealth tech’s YTD funding of $4.2B has already surpassed its 2024 level, making it one of the few fintech sectors with strong momentum across the year. Companies in the sector are also expanding rapidly: according to CB Insights talent signals, 3 of the top 5 fastest-growing tech markets in year-over-year hiring are in wealth tech, signaling strong confidence in digital-first wealth management solutions. AI is accelerating this momentum, with applications that can quickly enhance investment and advisory tools, driving faster adoption.
As reported earlier this year in July of 2025, the fintech sector continued to show resilience and evolution, with CB Insights’ State of Fintech Q2’25 Report revealing steady funding of $10.5 billion in the second quarter of 2025.
This had marked the second consecutive quarter surpassing $10 billion, a milestone not seen since early 2023.
While funding had (as reported in July of this year) remained below the peaks of 2022, the report highlighted a sector in recovery, driven by strategic investments in mature companies and a growing focus on B2B solutions and artificial intelligence (AI).