Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Wednesday, May 21, 2025
18.1 C
London

Fintech Funding in Ireland Plummets 90% in First Half of 2024

Funding for the fintech sector in Ireland has witnessed a staggering 90% decline in the first half of 2024 compared to the same period last year, according to a new report by Finch Capital. The sector raised only €22 million during this period, a sharp drop from €212 million in the first half of 2023.

While venture capital and buyout activity in Ireland remains consistent with last year’s levels, the report highlights a significant 40% decrease in average fund sizes. The largest deal in the sector during the first half of this year was a €10 million funding round for Zartis, a company based in Cork.

Finch Capital attributes this dramatic contraction in fintech funding to broader market trends, including cautious investor sentiment and ongoing economic challenges. However, the report also expresses optimism for a potential recovery next year, citing an expected resurgence in investor confidence and an increase in deal volumes.

Mike Brennan, Partner at Finch Capital, stated, “The challenges that fintech faced in 2023 were necessary for the sector to mature and become more sustainable. While funding may be down overall, and unicorn chasing has slowed, there is plenty of opportunity for companies that are capital-efficient and have a clear path to profit.”

On a broader European scale, total capital invested in fintech companies decreased by 25%, falling from €3.8 billion in the first half of 2023 to €2.9 billion in the same period this year. Nevertheless, the report indicates early signs of recovery in Europe’s fintech job market, which expanded by 10% year-on-year. This growth suggests that resilience in the sector could support a rebound in investment activity.

The UK accounted for two-thirds of the total volume of fintech deals, while the Netherlands also demonstrated stability with consistent deal volumes. Both Ireland and France have implemented government-supported initiatives to foster growth in the fintech sector.

Looking ahead, Brennan noted that with artificial intelligence transforming the industry and significant capital still available, the next 12 to 18 months could be pivotal for fintech in Europe. He remarked, “The next wave of fintech success stories will likely be built on sound financials rather than rapid revenue growth alone. The industry is shifting from unicorns to ‘half-a-corns,’ with £500 million valuations becoming the new benchmark.”

As the fintech landscape evolves, it remains crucial for companies to adapt to changing market conditions and investor expectations to secure funding and drive future growth.

Hot this week

From the Danube to the Highlands: Unexpected Similarities Between Scotland and Hungary

At first glance, Hungary and Scotland seem like two...

Teacher Supplies That Keep Your Students Engaged, Organised and Motivated

Teachers wear a hundred hats every day. From lesson...

European Commission Warns of US-Linked Risks Despite Robust Irish Growth Forecast

The European Commission has flagged significant risks to Ireland’s...

Government Unveils Ambitious “Silicon Island” Strategy to Supercharge Ireland’s Semiconductor Sector

The Irish Government has launched a comprehensive national strategy...

US Vice President JD Vance Meets EU Chief in Rome Amid Trade Tensions

United States Vice President JD Vance met with European...

Topics

Teacher Supplies That Keep Your Students Engaged, Organised and Motivated

Teachers wear a hundred hats every day. From lesson...

European Commission Warns of US-Linked Risks Despite Robust Irish Growth Forecast

The European Commission has flagged significant risks to Ireland’s...

US Vice President JD Vance Meets EU Chief in Rome Amid Trade Tensions

United States Vice President JD Vance met with European...

Tragedy as Young Boy Dies in Water Incident at Sligo Beach

A community is in mourning following the death of...

Moody’s Downgrades U.S. Credit Rating, Citing Soaring National Debt

The United States has lost its last perfect credit...

Vatican Bank’s Controversial Past and Financial Power Laid Bare in New Report

The Vatican Bank, officially known as the Institute for...

Related Articles

Popular Categories