Fintech funding continued to drop in 2024, partly due to macroeconomic conditions, but investors expect funding to stabilize in 2025. 

Funding through the first nine months of 2024 stood at $24.6 billion, compared to $32.5 billion during the first nine months of 2023, down 24.3% year over year, according to CBInsights’ State of Fintech Funding Q3 2024 report, the most recent data available, released on Oct. 15. 

Funding is returning to pre-pandemic levels, Carey Ransom, managing director at BankTech Ventures, told Bank Automation News.

Money went to more mature companies compared to startups in 2024, Ransom said, adding that in 2025, more mature companies might consider IPOs, which “could spur more capital to the next wave of startups.” 

Venture capitalists will prioritize AI-driven fintechs that use tech for core functions like operations, compliance, pricing, underwriting, customer experience, customer relationship management and personalization, Ransom said. 

“AI continues to capture a lot of energy and capital and … we’ve seen a big shift back to excitement about crypto [and] blockchain with the new administration coming to Washington,” Ransom said. 

“Lower [interest] rates could help fuel a new investment boom” in 2025, but companies that can provide services faster will attract significant capital, Ransom said. 

These fintechs recently secured funding: 

Databricks closes biggest AI funding round of 2024

Data and AI startup Databricks raised $10 billion in a series J round led by Thrive Capital, Andreessen Horowitz and DST Global, according to a Dec. 17 Databricks release. 

In what Crunchbase called the biggest AI funding round of 2024, the company’s valuation was set at $62 billion. The money will be used for:  

• AI product development;  

• Acquisitions; and  

• Significant expansion of Databricks’ international operations. 

Databricks also has a venture capital arm through which it invests in AI-driven companies. The San Francisco-based company has invested in AI-driven chatbot provider Glean and AI model provider Mistral AI. 

HSBC, Mastercard, CashApp and Nasdaq are among Databricks’ clients, according to the company. 

Upvest secures $105.1M in series C round

Berlin-based investment infrastructure startup Upvest on Dec. 12 announced it raised 100 million euros ($105.1 million) in a series C round led by London-based investment firm Hedosophia with participation by Menlo Park, Calif.-based investor Sapphire Ventures. 

Upvest plans to use the money to accelerate expansion in the United Kingdom after obtaining a service license from the U.K.’s Financial Conduct Authority in October, according to a company release.  

Upvest’s investment API is used by multiple banks, fintechs and wealth management companies, including: 

• $57.9 billion savings platform Raisin; 

• $22.1 billion fintech Revolut; 

• $7.4 billion digital bank Bunq; 

• $5.8 billion real estate investment firm Publity; and 

• $3 billion neobank N26. 

Upvest has raised $199.1 million across eight rounds since its 2017 founding and has estimated annual revenue of $50 million to $100 million, according to the online financial database Crunchbase. Upvest said in the release that its revenue increased 25% per month in 2024 and that it processed more than 20 million investment orders. 

Jiko raises $29M in series C

Money movement and storage service provider Jiko raised $29 million in a series C round from Upfront Ventures, Red River West and Airbus Ventures, among others, according to a release from Jiko on Dec. 12. 

Jiko uses APIs to connect its platform to banks and other asset managers’ systems to provide customers with 24/7 money movement capabilities, according to the company. 

The company plans to use the money to meet the growing demand for the safety of U.S. Treasury bills across all sectors, a spokesperson told BAN. 

“We’ll be focusing on speed, automation and reporting improvements for our corporate treasury clients,” the spokesperson said. “We’re going to be announcing a few key partnerships that will make Jiko available from some of the most popular treasury and cash management platforms.” 

The company has raised $118 million since its inception in 2016, according to Crunchbase. 

Jiko uses APIs to connect its platform to banks and other asset managers’ systems to provide customers with 24/7 money movement capabilities, according to the company. 

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