TechFlow, April 13 — According to a report by market intelligence and business analytics firm CB Insights, global deals declined for the fourth consecutive quarter. Amid mixed funding trends, several high-performing sectors stood out: artificial intelligence, cryptocurrency, and digital banking. Key findings from the report include:
- Fintech funding received a major boost from Binance: Financing for fintech companies grew 18% in Q1 2025, the largest increase in three quarters. This metric surpassed $2B for the first time in a decade, driven by one large deal: a $2B minority equity investment in cryptocurrency exchange Binance. Excluding this transaction, Q1 2025 funding would have trailed Q4 2024.
- AI is gaining traction in fintech: AI companies raised a record 16% of fintech deals in Q1 2025. The share of AI deals has been steadily increasing, aligning with broader venture capital market trends.
- Cryptocurrency is regaining investor interest: More than half (52%) of large early-stage deals went to companies developing digital asset solutions, including blockchain technology, cryptocurrency exchanges, payment platforms, and security.
- Digital banking remains resilient: Despite declines in funding and deal volume in Q1 2025, digital banking firms achieved the highest CB Insights Mosaic scores among all fintech verticals, a metric measuring business health and growth potential. Challenger banks are driving these high scores: six out of the seven digital banking companies with Mosaic scores above 900 fall into this category.
Add to Favorites
Share to Social Media
