Fintech funding hit a four-year low in the first quarter of 2024, partly driven by the higher cost of capital and a change in priorities for investors.  

Global fintech funding clocked in at $7.3 billion in Q1, down 54% year over year, while the number of deals completed fell to 904, down by 28% YoY, according to an April 18 report by think tank CBInsights. 

“Investors are simply making smaller deals in fintech, and the big money is going toward AI,” an analyst from CBInsights told Bank Automation News. 

While fintech funding slowed, broader venture funding increased by 11% during the quarter, the analyst said, noting, “that jump was largely spurred by massive deals to fund capital-intensive generative AI companies like Anthropic, for example, (which raised a $2.75 billion round from Amazon).” 

Mega-funding rounds of more than $100 million also recorded a four-year low, with only 12 deals completed in Q1, raising $1.9 billion, a drop of 79% YoY, the report stated. 

Restrictive monetary policy is hurting funding and “rate cuts have the potential to make cash flow more freely,” the analyst said. 

The following fintechs raised money recently: 

Ramp raised $150M in series D

Expense management fintech Ramp raised $150 million in a series D round from Founders Fund and Khosla Ventures, according to Ramp’s April 17 release. 

Will Petrie, Ramp vice president of strategic finance, told BAN that the money will go toward three core areas: 

• Expanding product capabilities to deliver new features that help companies save time and money; 
• Continuing to grow the team while maintaining a results-focused company culture; and 
• Pursuing select partnerships, investments and acquisitions that accelerate Ramp’s ability to serve customers. 

Ramp’s customers include Shopify, eventbrite and Glossier, according to the company’s website. 

“We’re building more sophisticated accounts payable features, deepening our accounting automation and integrating more productivity software,” Petrie said. “We’re also enhancing our AI capabilities to automate more finance-related tasks, including collecting memos, predicting expenses and categorizing transactions more accurately.” 

The recent funding round has valued Ramp at $7.7 billion, Petrie said, adding that the company is “open to select acquisitions as another way to deliver more value for our customers.” 

Brim Financial raised $85M in series C

Toronto-based Brim Financial raised $85 million in a series C round from Epic Ventures and Zions Bank, according to the company’s April 3 release. 

The money will be used to expand Brim’s services globally and penetrate the U.S. market more deeply and will aid in product development, the release stated. 

“This funding will accelerate Brim’s growth and fuel our international expansion,” Rasha Katabi, chief executive and founder of Brim, said in the release. “We will continue to execute on our robust product road map, focus on platform automation and integrate open banking capabilities.” 

Laurentian Bank and Canadian Western Bank use Brim’s credit-card-as-a-service offering, according to the company’s website. 

The company has raised $110 million since its inception in 2015, according to Crunchbase. 

Novidea raises $30 million in series C

Cloud-based insurtech provider Novidea raised $30 million from Battery Ventures, Cross Creek and KT Squared, according to an April 9 release. 

The money will be used for product innovation and geographic expansion of Novidea’s services into the United States, Europe and Southeast Asia, a Novidea spokesperson told BAN. The company will also “explore the possibilities of making strategic acquisitions in this space,” the spokesperson said.  

The company has raised $120 million since its inception in 2009, according to Crunchbase. 

Novidea appointed Jeff Heine as chief revenue officer this month to grow the company’s global revenue and sales, according to the company’s April 11 release. 

Goalsetter secures $9.6 million in series A

Financial education and planning platform Goalsetter has raised $9.6 million in a series A round from Edward Jones and MassMutual’s Catalyst Fund, according to the company’s March 25 release. 

The investment allows Goalsetter to expand its partnerships with companies and financial institutions to provide “Americans with pathways toward building wealth and fiscal fitness,” a Goalsetter spokesperson told BAN. 

The money will help Goalsetter forge partnerships with banks and credit unions to reach the next generation of customers, the spokesperson said. The company’s white-label, youth-banking solution offers financial education and help in meeting financial goals for young customers in an engaging way, the spokesperson said. 

“Goalsetter has raised over $30 million to advance its mission of helping families to become more sound savers, spenders, investors and owners through its platform centered on building financial literacy for youth and their families,” the spokesperson said.