PitchBook has released their latest Enterpise Fintech ecosystem.
PitchBook’s Fintech ecosystem reports notes that deal value and count in Q2 2024 was fairly steady. As stated in the repot, enterprise fintech companies have “secured $4.6 billion in VC funding across 315 deals.”
PitchBook pointed out that while deal count “was down 6.3% QoQ and 13.7% YoY, deal value was up 27.1% YoY and 2.2% QoQ, suggesting recent rounds have seen higher deal sizes.”
PitchBook also mentioned that enterprise fintech startups continued to “capture the majority share of VC deal value, making up 51.9% of total fintech venture capital in Q2.”
However, PitchBook pointed out that this is “the smallest share held by enterprise fintech companies since Q1 2021.”
The research report also noted that key deals included segments with “the highest deal value in Q2 were capital markets ($1.6 billion), CFO stack ($1.2 billion), and financial services infrastructure ($672.7 million).”
As stated in the comprehensive research report from PitchBook, notable deals that closed in Q2 “include Clear Street’s $685.0 million Series B, AlphaSense’s $650.0 million acquisition financing to acquire competitor firm Tegus, QI Tech’s $250.0 million Series B (inclusive of a $50.0 million extension), Kapital’s $165.0 million Series B ($40.0 million equity, $125.0 million debt), Ramp’s $150.0 million Series D2, and Celcoin’s $125.0 million Series C.”
Deal sizes: YTD, enterprise fintech companies “have logged a median VC deal size of $5.0 million, up 11.3% from 2023’s median of $4.5 million.”
PitchBook furhter noted that at the stage level, “late-stage deals increased 20.1% in median deal size to $9.9 million.”
Other stages decreased “from their 2023 medians, with pre-seed/
seed declining 22.8% to $2.2 million, early-stage VC declining 6.2% to $5.0 million, and venture growth declining 31.5% to $17.0 million.”
Pre-money valuations: The YTD median pre-money valuation for enterprise fintech companies now sits at $24.8 million, up 24.2% from the 2023 median.
Medians from all deal stages “have increased compared with 2023.”
The pre-seed/seed median “increased 1.3% to $10.6 million, the early-stage median increased 62.9% to $45.6 million, and the late-stage median increased 18.1% to $50.0 million.”
Notably, the venture-growth median “increased 875.4% to $1.4 billion; however, the dataset for this deal stage is sparse and currently much smaller than those for other deal stages.”