Fintech Sector Investment Remains Muted While Opportunity Persists in 2024; Silicon Valley Bank Releases Fourth Edition of Future of Fintech Report

PR Newswire10-23

2024 report highlights Fintech founders diligently improving bottom line in 2024 despite investments dropping 91% since peak in 2021 SAN FRANCISCO, Oct. 23, 2024 /PRNewswire/ -- While fintech ...

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}","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2477586476","pubTimestamp":1729684800,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"2024 report highlights Fintech founders diligently improving bottom line in 2024 despite investments dropping 91% since peak in 2021. SAN FRANCISCO, Oct. 23, 2024 /PRNewswire/ -- Whilefintech companies face significant headwinds – from high interest rates to increasing regulatory oversight – they are also finding opportunity in 2024, according to the latest Future of Fintech Report from Silicon Valley Bank , a division of First Citizens Bank. Venture capital  investment remains muted, hovering near a six-year low for the sector, as deal flow has shifted toward the early stage, with more than three seed deals for every one series A. Artificial intelligence  is also emerging as a bright spot for the industry as investors and founders explore its growing role in the sector.The 2024 Future of Fintech Report provides a detailed analysis of the fintech market, including investment and fundraising trends. It also looks at the growing importance of AI in horizontal applications, including cust","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"VC":"伟世通","BK4211":"区域性银行","LU1815336091.USD":"THREADNEEDLE (LUX) GLOBAL SMALLER COMPANIES \"AUP\" (USD) INC","BK4124":"机动车零配件与设备","LU0757428866.USD":"THREADNEEDLE (LUX) GLOBAL SMALLER COMPANIES \"AE\" (USD) ACC","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","BK4589":"SVB概念","BK4207":"综合性银行","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","FTVI":"Fintech Acquisition Corp VI","FCNCO":"First Citizens BancShares, Inc","WRD":"文远知行","FCNCP":"First Citizens BancShares, Inc.","FCNCA":"第一公民银行股份","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC"},"translate_title":"金融科技行业投资依然低迷，而2024年机会依然存在；硅谷银行发布第四版金融科技未来报告","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FCNCA":1,"FTVI":1,"VC":1,"WRD":1,"FCNCO":0.9,"FCNCP":0.9},"content_text":"2024 report highlights Fintech founders diligently improving bottom line in 2024 despite investments dropping 91% since peak in 2021\nSAN FRANCISCO, Oct. 23, 2024 /PRNewswire/ -- While fintech companies face significant headwinds – from high interest rates to increasing regulatory oversight – they are also finding opportunity in 2024, according to the latest Future of Fintech Report from Silicon Valley Bank (SVB), a division of First Citizens Bank. Venture capital (VC) investment remains muted, hovering near a six-year low for the sector, as deal flow has shifted toward the early stage, with more than three seed deals for every one series A. Artificial intelligence (AI) is also emerging as a bright spot for the industry as investors and founders explore its growing role in the sector. \n\n  \n\nThe 2024 Future of Fintech Report provides a detailed analysis of the fintech market, including investment and fundraising trends. It also looks at the growing importance of AI in horizontal applications, including customer service and productivity, as well as vertical applications specific to finance.\n\"While fintech companies face challenges, we anticipate broader recovery in investment to begin in 2025 as we continue to see opportunities for the industry,\" stated Nick Christian, Head of National Fintech and Specialty Finance at Silicon Valley Bank. \"For example, US fintech companies are becoming more efficient with nearly 80% of fintech companies improving EBITDA margins year-over-year and nearly 30% now having six to 12 months of runway left, up from 20% last year. At the same time, generative AI is opening possibilities for value creation in fintech - whether it's legacy companies improving efficiencies by reducing labor costs, or AI-native companies building novel solutions.\"\nAdditional findings from the Future of Fintech 2024 report include:\nFintech Investment Key Data Points\n\nFintech-inclined VC fundraising dropped 91% since its peak in 2021, with funds raising $5B through September. Announced funds, including those that have not yet closed, totaled $9B, the lowest since 2020.\nOne in twelve VC dollars went to a fintech company in 2024, down from one in five dollars in 2021.\nVC firms have slowed their pace of deployments in fintech. In 2021, the most active 100 US fintech investors were closing more than two deals per month. That pace has dropped to less than one deal per month this year.\nIn 2021, fintech deals over $100M accounted for 65% of deal activity in the sector. In 2024 this number has dropped to 34%.\n\nAI Investment by the Numbers\n\nSince 2021, mentions of AI in fintech corporate earnings calls have increased 4x.\nAI-native fintech companies are experiencing an advantage in incorporating AI tools into early stage products while legacy fintechs are largely cutting human capital costs in order to embrace AI.\nNative AI companies in fintech create more value per dollar invested than Legacy/first-generation fintechs (i.e., median for 2024 VC deals was 4.0x for Native AI versus 2.7x for Legacy/First Generation AI).\n\nLearn MoreTo read the complete Future of Fintech 2024 report, click here: The Future of Fintech Report 2024 | Silicon Valley Bank (svb.com)\nA leader in providing market insights about the innovation economy, SVB has produced more than 10 new market reports in 2024. For the complete library of SVB's signature reports, please visit Market Research Industry Trends & Insights | Silicon Valley Bank (svb.com)\nAbout Silicon Valley BankSilicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com.\n View original content to download multimedia:https://www.prnewswire.com/news-releases/fintech-sector-investment-remains-muted-while-opportunity-persists-in-2024-silicon-valley-bank-releases-fourth-edition-of-future-of-fintech-report-302284110.html\nSOURCE Silicon Valley Bank","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477586476"}