A quick review of #fintech 2025

I get regular emails with facts and stats, and one that I subscribe to regularly is from Fintech Global. Fintech Global provides research and, more importantly, connects senior decision-makers via industry-leading conferences.

Enough of the advertising as what intrigues me more is facts and stats, and their research gives an interesting reflection of the world of fintech in 2025, which is still a bit of a bloodbath (a term I first used in 2022 and again in 2024) unless you are one of the large, proven, well-established players like Tide, Cyera, PayU or Revolut.

In fact, that is the key point. The early start-ups are struggling but the big ones are getting the deals. In 2025, you need to be a big fish in a big pond, or you are struggling.

Here’s the lowdown:

Global FinTech funding dropped by 6% YoY

In the first three quarters of 2025, the global FinTech market saw a moderation in overall activity compared with the same period in 2024.

Q1-Q3 2025 recorded 2,654 deals, a 27% decline from the 3,625 deals completed in Q1-Q3 2024. Total funding over the same period fell to $64.9bn, a 6% drop from the $69.3bn raised a year earlier. Despite the slowdown in deal volume, the average deal size increased notably, rising to $24.5m in Q1-Q3 2025 from $19.1m in Q1-Q3 2024.

Key global FinTech investment stats in Q1 – Q3 2025:

• Global FinTech funding dropped by 6% YoY
• At current investment pace, deal activity is projected to drop by a fifth in 2025
• Deals under $100m dropped by 15% as investors grew cautious

If Q1-Q3 2025 performance were extended across the full year, total 2025 funding would reach $86.6bn with 3,539 deals. This would represent a 3% decline in funding compared with the $89.7bn raised in 2024, while deal volume would fall more sharply by 20% from the 4,401 deals completed last year. The projected average deal size for 2025 would therefore remain elevated, reinforcing the pattern of capital consolidation and signalling a maturing global FinTech investment landscape where later-stage and higher-value opportunities continue to command investor focus.

Deal size dynamics further illustrate this shift. Deals under $100m dropped by 15% as investors grew cautious. In Q1-Q3 2025, deals under $100m totalled $28.2bn, a 15% decrease from the $33bn recorded in Q1-Q3 2024. In contrast, deals of $100m or more edged up to $36.7bn, a 1% increase from the $36.3bn recorded a year earlier.

Using the 2025 projection methodology, full-year 2025 funding under $100m would reach $37.6bn, 7% below the $40.3bn seen in 2024. Meanwhile, funding from deals above $100m would reach $49bn, broadly in line with the $49.3bn recorded in 2024.

These figures highlight a market where smaller transactions are contracting more noticeably, while large-scale rounds remain comparatively resilient, underpinned by continued appetite for established FinTech platforms and proven business models.

Delving down into each region, the firm provides research on what is happening all over the world. By way of example:

European FinTech funding dropped by 42% YoY

Key European FinTech investment stats in Q3 2025:

• European FinTech funding dropped by 42% YoY
• UK firms secured half of the top 10 deals to cement the country’s position as the main European FinTech hub in the third quarter

In Q3 2025, the European FinTech sector recorded total funding of $2bn across 174 deals, representing a 42% decline in investment value from the $3.5bn raised in Q3 2024 and an 11% drop in deal volume from 196 transactions during the same period.

The fall in both funding and deal activity indicates a continued cooling of investor sentiment, potentially influenced by persistent macroeconomic headwinds, regulatory uncertainty, and more selective capital allocation across growth-stage companies.

Despite the overall contraction, investor interest in key markets such as the United Kingdom and Germany remained steady, highlighting ongoing confidence in their FinTech ecosystems and innovation capacity.

UK firms secured half of the top 10 deals to cement the country’s position as the main European FinTech hub in the third quarter

The top 10 deals in Q3 2025 were led by the UK, which strengthened its position with firms securing five major transactions compared to four in Q3 2024.

Germany also maintained a presence in both periods, underscoring its role as a consistent European FinTech hub.

Meanwhile, Turkey, Switzerland, Spain, and France each secured one top deal in 2025, signalling a geographically diverse spread of high-value activity across the region.

In contrast, France’s share of top deals dropped from three in Q3 2024 to just one, while Luxembourg and the Netherlands were absent from the latest list.

The broader distribution of countries in Q3 2025 reflects an expanding yet more competitive funding landscape, with emerging markets beginning to feature alongside traditional FinTech strongholds.

Then there is the USA.

Key US FinTech investment stats in Q1 - Q3 2025:

• US FinTech investment dropped by 7% YoY
• At current investment pace, deal funding is projected to decline by a 6% in 2025
• Deals over $100m dropped by 8% as investors grew more selective

Across the first three quarters of 2025, the US FinTech market saw a notable contraction in deal activity alongside a moderate decline in total funding compared with the same period in 2024.

Deal volume fell to 1,230, marking a 21% drop from the 1,557 deals completed during the first three quarters of 2024.

Total funding also slipped to $35.9bn, a 7% decline from the $38.7bn raised over the same period last year.

Despite this overall slowdown, the average deal size increased from $24.8m in the first three quarters of 2024 to $29.2m in the same period of 2025, indicating that capital is becoming more concentrated in higher-value transactions even as the number of deals decreases.

At current investment pace, deal funding is projected to reduce by 6% in 2025.

If activity from the first three quarters of 2025 were projected across the full year, total 2025 funding would reach $47.9bn from an estimated 1,640 deals.

This would represent a 6% decline in funding from the $51bn raised in 2024 and a 12% drop in deal volume from the 1,868 deals completed last year.

Under this projection, the average deal size for 2025 would remain elevated relative to 2024.

Funding patterns by deal size further highlight this shift.

Deals over $100m dropped by 8% as investors grew more selective.

In the first nine months of 2025, deals under $100m accounted for $15.2bn, a 5% decrease from the $16.1bn recorded in the equivalent period of 2024.

Meanwhile, deals worth $100m or more totalled $20.7bn, down 8% from the $22.6bn seen a year earlier.

Based on the 2025 projection method, full-year funding for deals under $100m would reach around $20.3bn, slightly above the $19.2bn recorded in 2024.

Conversely, funding from deals above $100m would total an estimated $27.6bn, representing a 13% decline from the $31.8bn raised in 2024.

These figures illustrate a market in which smaller deal activity remains comparatively resilient, while large-scale investment rounds have softened, pointing to a recalibration of investor appetite amid evolving macroeconomic and regulatory conditions.

Over in Asia, funding is down too.

Asian FinTech funding dropped by 19% YoY in Q3

Key Asian FinTech investment stats in Q3 2025:

• Asian FinTech funding dropped by 19% YoY in Q3
• Deals over $100m fell by 62% as investors tightened their purse strings

In Q3 2025, the Asian FinTech market saw a clear pullback in overall funding compared with the previous year, although deal activity showed some recovery from the prior quarter.

The quarter recorded 117 deals, an 11% decline from the 131 deals completed in Q3 2024 but an 18% increase from the 99 deals seen in Q2 2025.

Total funding fell to $1.6bn, marking a 19% drop from the $2bn raised in Q3 2024 and a 35% decrease from the $2.5bn recorded in Q2 2025.

The average deal size in Q3 2025 reached $13.7m, down from $15.1m in Q3 2024 and significantly below the $25.1m reported in Q2 2025, pointing to a shift away from large-scale financing rounds.

Deals over $100m fell by 62% as investors tightened their purse strings

Funding patterns across deal sizes further underline this trend.

Deals under $100m totalled $1.3bn in Q3 2025, representing a 6% increase from the $1.2bn recorded in Q3 2024 and a 32% rise from the $1bn raised in Q2 2025.

In contrast, deals of $100m or more fell sharply to $278m, a 62% drop from the $726m seen in Q3 2024 and an 81% decline from the $1.5bn recorded in Q2 2025.

The steep fall in high-value activity illustrates a more cautious funding environment across Asia, with investors concentrating capital in smaller and mid-sized transactions while pulling back from major late-stage commitments.

India is also down.

Indian FinTech funding dropped by 48% QoQ in Q3

Key Indian FinTech investment stats in Q3 2025:

• Indian FinTech funding dropped by 48% QoQ in Q3
• Average deal value fell to $11.9m as investors grew cautious

In Q3 2025, the Indian FinTech sector experienced a decline in funding compared to both the previous quarter and the same period last year, even as deal activity reached its highest level in recent quarters.

A total of 48 deals were recorded in Q3 2025, marking a 7% increase from the 45 deals completed in Q3 2024 and a 45% rise from the 33 deals seen in Q2 2025.

This uptick in deal volume indicates a resurgence of investor interest in the Indian FinTech space, particularly in early-stage and mid-sized transactions. However, the increase in activity did not translate into higher funding levels.

Total funding in Q3 2025 stood at $573m, representing a 24% decline from the $753.6m raised in Q3 2024 and a 48% drop from the $1.1bn recorded in Q2 2025.

This steep contraction highlights a cautious funding environment, as investors continue to assess valuations and capital efficiency in the face of tighter global liquidity and slower economic growth.

Average deal value fell to $11.9m as investors grew cautious

The average deal value in Q3 2025 was $11.9m, a 64% decline from the $33.3m average in Q2 2025 and a 27% fall from the $16.8m average in Q3 2024.

This significant reduction underscores a strong investor preference for smaller deal sizes, with funding shifting towards early-stage companies rather than large-scale growth rounds.

While the rising number of deals signals continued confidence in India’s long-term FinTech potential, the smaller average deal size reflects the impact of ongoing market uncertainty and investor prudence in capital deployment.

In fact, the only region that had a good year is …

LatAm FinTech investments increased by 44% QoQ in Q3

Key LatAm FinTech investment stats in Q3 2025:

• LatAm FinTech investments increased by 44% QoQ in Q3
• Average deal value grew by 37% to $14.3m driven by renewed investor interest

In Q3 2025, the LatAm FinTech market recorded strong growth in both deal activity and funding compared with the same quarter last year.

A total of 40 deals were completed in Q3 2025, representing a 33% increase from the 30 deals recorded in Q3 2024.

Funding also rose sharply, reaching $572m in Q3 2025 – an 82% increase from the $314.7m raised in Q3 2024.

The combined rise in both deal volume and capital deployment indicates renewed investor appetite and expanding momentum across the region’s FinTech ecosystem.

When comparing Q2 to Q3 2025, there was again a clear increase in market activity.

The number of transactions climbed from 25 to 40, marking a 60% QoQ increase, while funding grew from $398.1m in Q2 to $572m in Q3, a 44% rise quarter-over-quarter.

This simultaneous uplift in funding and deal count suggests that investors engaged more actively across the region, backing a wider mix of FinTech propositions during Q3.

Average deal value grew by 37% to $14.3m driven by renewed investor interest

The average deal value in Q3 2025 was $14.3m, a 37% increase from the $10.5m average in Q3 2024.

Compared with Q2 2025, where the average deal size stood at $15.9m, Q3 2025 reflected a 10% decrease, indicating that while more capital was invested overall, it was distributed across a larger number of transactions.

This pattern highlights growing diversification of investment across the LatAm FinTech sector as investors broaden exposure to emerging opportunities in the region.