Distribution of Lower Middle Market FinTech M&A Deals Smaller transactions remain the primary driver of M&A activity, accounting for over 60% of total volume in 2024
M&A Deals by Sector
65% of M&A deals were valued under $50M
72% of M&A deals were valued under $50M
InsurTech
10%
Select FE Deals in 2024
13%
Credit / Lending Tech
6% <1%
PaymentTech
Crypto / Blockchain
35%
17%
22%
11%
45%
Payment Tech
23%
2023
2024
Financial Management Solutions
Sold to
13%
2024
Banking Tech
17%
28%
30%
15%
15%
Financial Data & Risk
WealthTech
$0 - $25M $25 - $50M $50 - $100M $100M+
• Strategic acquirers continued to be the primary drivers of M&A activity, with 16 of the top 20 deals. • Despite a shift towards larger deals, smaller transactions below $50 million remained a key driver of M&A activity.
• Payment and Banking tech sectors had approximately 40% of the deal volume in 2024 – Increasing use of AI and Open Banking will continue to transform payment processes, offering new opportunities • Intensifying FinTech regulation will continue to drive deal flow in ‘Financial Data & Risk’ sector as regulators implement stricter rules to ensure consumer protection and operational resilience
Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed.
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