findexable’s Post

A buyer’s market - Fintech in 2024 What’s focusing the minds of #fintech founders and investors in 2024? See below for a great review of Q1 2024 fintech #M&A in the 🇺🇸US from the team PitchBook - trends that will iterate globally throughout 2024: 3P’s for 2024: 💸💸 #Profitability: The venture winter is focusing minds on fintechs’ core mission, shutting down non-core services and getting to positive cashflow and a path to profitability. And, if that’s not an option, exploring options for exit or sale (see below). 🧭 Pragmatism: A wave of fintech-to-fintech acquisitions driven by fintechs (especially smaller firms) that have reached break-even will drive ‘verticalization’ during 2024. 🔮 Practicalities: An improving economic picture and subsiding fears of a recession will inspire ‘Big FS’ and ‘Big fintech’ to make bold strategic bets through acquisitions – in the case of industrial-scale fintechs the strong will get stronger... Other notes 🚨 In 2023, fintech companies venture funding in the US and Canada raised $34.6 billion – just over half the 2022 total. 🚨 Private equity firms are biggest buyers of scaled fintechs between 2020 and 2023 – with the concentration on enterprise fintech: 8 out 10 deals (and over 90% of M&A transaction value) in 2023 went to enterprise fintech (specifically capital markets and FS infrastructure tech) as B2C models struggle in tough market conditions. Mingzulu Ewan MacLeod Arjun Vir Singh Alvaro Rojo Ben Lloyd Anastasiya Kizima Grant Niven James Ulan Rudy Yang Brendan Le Grange Matteo Rizzi findexable