Global startup funding fell by 23% in Q2 2024 compared to the previous quarter, with $108.5 billion invested across 7,651 deals. The BFSI sector, traditionally a hotbed for innovation, has not been immune to this downturn, with a notable decline in fintech investments.
Economic uncertainties, rising interest rates, and cautious investor sentiment have led to a slowdown in venture capital funding. The number of new unicorns—startups valued at $1 billion or more—has also declined significantly, reflecting the challenging environment.
Despite these headwinds, experts believe that sectors like insurtech, payments, and cybersecurity will continue to attract investment, albeit at a slower pace. Startups focusing on profitability and sustainable growth are expected to fare better in securing funding.
