Interest in prediction markets has reportedly fueled an increase in FinTech venture funding.
Financial technology companies worldwide raised $55.94 billion from venture groups during 2025, Bloomberg News reported Wednesday (Dec. 31), citing PitchBook data. That’s up 25% from the $44.75 billion the sector earned in 2024.
Prediction markets Kalshi and Polymarket made up $3.71 billion of that figure, the report added, enjoying the largest U.S. funding rounds of the year and two of the top five in the world.
Polymarket is now valued at $9 billion, raising $2 billion in October. Kalshi raised $300 million the same month and another $1 billion more recently, and is now valued at $11 billion.
These mega-rounds, Bloomberg writes, have become increasingly rare in the FinTech space in recent years, particularly outside high-profile industry players like Stripe and Plaid.
“We have not seen these types of very large primary capital raises in some time,” said Matt Streisfeld, general partner at FinTech investment firm Oak HC/FT.
The last time the volume of FinTech venture funding increased was 2021, driven by extremely low interest rates. However, companies that year raised more than double 2025’s figure, at nearly $124 billion. And there were fewer deals in 2025 compared to last year: 3,712, a 19% drop from 2024.
Bloomberg points to Ramp as one of the market’s new “venture darlings,” with the financial automation company raising roughly $1 billion this year, and seeing its valuation climb from $13 billion to $32 billion.
“You’re going to see more doubling down on the perceived market winners in each category,” Streisfeld told Bloomberg. “The last thing we need is 10 new players to be added into the actual five players that are already in the market.”
PYMNTS examined the venture funding environment for FinTechs last month in a conversation with Kamran Ansari of Infinity Ventures.
“The exits have been drier than at any point I’ve seen in my venture career,” he told PYMNTS CEO Karen Webster. “The M&A pipeline is quieter than ever, and that’s forcing FinTech founders to grow sustainably and prove they can be profitable.”
He added that his firm is betting big on B2B payments as the next frontier for FinTech innovation, and “a much larger space than consumer.”
“It’s still old-school — checks, invoices, PDFs,” Ansari said, citing the example of Coast, a portfolio company simplifying payments for fleet operators.
“They’re targeting HVAC, plumbing and electrical companies,” he said. “Those businesses run on credit cards and invoices, and we’re modernizing that.”
