AML Tech seed funding grows in 2022

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Research highlight

Global AML Tech seed deal activity grows 48% in 2022

Global AML Tech seed investment stats in 2022:

• The Global average AML Tech seed deal in 2022 was $1.8m
• Global AML Tech seed deal activity reached 98 deals in total for 2022, a 48% increase from 2021
• The USA was the most active AML Tech seed deal country with a 36% share of deals

Anti Money Laundering (AML) technology saw an innovative year with seed deal activity reaching 98 deals in total for 2022, a 48% increase from the pervious year. Total deals in the AML Tech sector saw a slight 6% drop over the same period. The average Tech AML seed deal in 2022 globally was $1.8m, a 12% increase from 2021.

Blowfish, which detects and prevents fraud for web3 wallets, was the largest AML Tech seed deal in 2022 raising $11.8m from 16 investors, led by Paradigm. Blowfish has developed a service aimed at detecting malicious intent in transactions on behalf of wallets and forwarding them to the network. This creates an additional layer of security that can safeguard users against phishing and hijacking attacks. The technology behind this service includes an API featuring warning symbols and guidance, which makes transactions safer for crypto users. Given the alarming rate of crypto hacks and scams, such a tool is necessary, as $1.9 billion worth of cryptocurrency was stolen in the first seven months of 2022. Blowfish has already partnered with Phantom to provide their users with top-notch transactional security. Since the integration of their API, Blowfish has scanned more than 125 million proposed transactions and prevented over 11,000 wallet-draining transactions from being signed by users.

The USA was the most active AML Tech seed country in 2022 with 35 deals raised by USA based AML companies, a 35% share of total seed deals. The UK was the second most active AML seed country with 13 deals announced, a 13% share of deals and Germany was third with a 5% share.

The US based Financial Crimes Enforcement Network (FinCEN) has issued a final rule in Jan 2023 implementing the Corporate Transparency Act (CTA), which requires certain types of corporations, limited liability companies, and similar entities in the US to report beneficial ownership information. The aim is to deter money laundering and other illicit activity conducted through shell companies by enhancing corporate transparency. The rule will affect tens of millions of companies and will go into effect on 1 January 2024, with violators subject to civil and criminal penalties.

RegTech news

• Theta Lake brings compliance to digital whiteboards on Mural?- Theta Lake, a leader in collaboration compliance and security solutions, has partnered with visual collaboration platform Mural. Read the full story?here.
• Age Partnership taps Aveni to enhance customer outcomes and ease risks?- Aveni?has been selected by equity release advisory firm Age Partnership to revolutionise its quality assurance systems. Read the full story?here.
• ACA Group unveils solution to meet outsourced compliance program demand?- RegTech firm ACA Group has launched ACA Signature, a solution that is focused on meeting the compliance needs of financial firms. Read the full story?here.

Regulation news

• EBA unveils new set of indicators to identity potential consumer harm causes?- The European Banking Authority (EBA) has published a new set of indicators aimed at identifying potential causes of consumer harm.?Read the full story?here.
• ECB publishes climate-related financial disclosures for corporate and policy portfolios?- The European Central Bank (ECB) has published its first climate-related financial disclosures for its corporate sector and non-monetary policy portfolios.?Read the full story?here.
• FCA names new joint exec directors of enforcement and market oversight?- The Financial Conduct Authority (FCA) has appointed Therese Chambers and Steve Smart as joint executive directors of enforcement and market oversight.?Read the full story?here.

RegTech Deal news

• Communication compliance startup LeapXpert raises $22m?-?LeapXpert, which stylises itself as the responsible business communication pioneer, has netted $22m for its Series A+ funding round. Read the full story?here.
• ESG firm Atlas Metrics bags €5.2m investment?-?Atlas Metrics, a company on a mission to make ESG impact more transparent and accurate, has raised €5.2m in a funding round. Read the full story?here.
• Veriff partners with Salv to fight financial crime?-?Global identity verification provider?Veriff?has partnered with RegTech firm Salv to strengthen the fight against financial crime.? Read the full story?here.

CyberTech news

• Cloud identity security platform Britive lands $20.5m Series B?-?Britive, a cloud identity security platform, has secured $20.5m in a Series B funding round headed by Pelion Venture Partners. Read the full story?here.
• Identity security firm Spera nets $10m seed funding?-?Spera, an Israel-based cybersecurity startup offering protection from identity-driven threats, has scored $10m in seed funding. Read the full story?here.
• Right-Hand Cybersecurity lands $5m in Series A raise?-?Right-Hand Cybersecurity, a firm focused on human risk management for cybersecurity, has scored $5m in a Series A funding round. Read the full story?here.

Other RegTech news

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• Is the UK open banking sector at a crossroads??-?Recent research conducted by the Coalition for a Digital Economy (Coadec) has cautioned that the open banking industry is at a ‘vital crossroads’.?Read the full story?here.
• CSI taps Hawk AI to boost fraud and AML product offering?-?CSI, a provider of end-to-end FinTech and RegTech solutions, has partnered with?Hawk AI?to deliver its latest WatchDOG Fraud and WatchDOG AML products.?Read the full story?here.