US FinTech deal activity grew 33% YoY in Q1 2026 driven by surge in deals under $100m

US FinTech companies raised $11.1bn across 466 deals in Q1 2026, a 16% increase in funding and a 33% rise in deal count compared to the $9.6bn and 350 transactions recorded in Q1 2025.

Both measures moved in the same direction, a relatively uncommon combination that points to genuine broadening of activity rather than a small number of large deals flattering the headline figure.

The average deal size in Q1 2026 came in at $23.8m, down 13% from $27.4m in Q1 2025 and below the $32m average seen across 2025, consistent with a market in which capital is being distributed across a greater number of opportunities.