Find out who made the RegTech100 & European RegTech deals double in Q3

Eighth RegTech100 highlights top industry players in the regulatory technology sector

RegTech Analyst has unveiled the latest edition of its RegTech100 ranking, underlining some of the top RegTechs you need to keep an eye on in the RegTech industry.

Read the full story here.

Research highlight

European RegTech Q3 deal activity doubled QoQ despite zero deals of $100m or over

Key European RegTech investment stats in Q3 2024:

• In the third quarter of 2024, the European RegTech market demonstrated mixed performance, with notable year-over-year changes in deal volume and funding.
• Global RegTech deal activity doubled in Q3 QoQ
• Global RegTech deal activity reached 38 deals in Q3, a sharp 88% decrease from the 310 deals recorded in Q3 2023, but over a 2x increase from the 18 deals seen in Q2 2024.

In the third quarter of 2024, the European RegTech market demonstrated mixed performance, with notable year-over-year changes in deal volume and funding.

Global RegTech deal activity doubled in Q3 QoQ

Global RegTech deal activity reached 38 deals in Q3, a sharp 88% decrease from the 310 deals recorded in Q3 2023, but over a 2x increase from the 18 deals seen in Q2 2024.

Total funding in Q3 2024 amounted to $234m, reflecting a 13% increase over the $208m raised in Q3 2023 and almost a 4x rise from the $81m recorded in Q2 2024. Despite increased funding levels, the drastic reduction in deal activity year-over-year highlights a challenging investment environment.

European RegTech funding projected to halve for 2024

Trend analysis shows that the deal count for 2024 would be 114 deals, marking a 47% decline from the 215 transactions completed in 2023.

Total funding would close at $582m, a 54% decline from the $1.3bn raised in 2023.

This stark contrast underscores the cautious investment climate, where fewer deals are being struck despite rising deal sizes, as the market continues to adapt to regulatory and economic pressures.

There have been no deals of $100m or over since Q3 2024

Significantly, no deals over $100m have been recorded in the European RegTech market since Q3 2023.

All funding in Q3 2024 was raised through deals under $100m, totalling $234m, more than double the $108m recorded in Q3 2023 and a staggering 4x increase from the $81m seen in Q2 2024.

The absence of high-value deals underscores a strategic pivot toward smaller, more manageable investments as investors navigate regulatory uncertainties.

MirrorWeb, a leading UK provider of digital communications archiving and regulatory compliance software secured $63m in a funding round making it the biggest European RegTech deal in Q3

Known for its innovative Insight platform, MirrorWeb supports financial institutions in meeting complex regulatory requirements by enabling comprehensive archiving across websites, mobile, email, instant messaging, and social media channels.

This latest investment will drive the company's product development and customer support capabilities, ensuring continued regulatory readiness for its clients.

With Mainsail’s support, MirrorWeb is positioned to enhance its value for financial services firms needing dependable, real-time compliance solutions, solidifying its impact on the RegTech sector in the UK.

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RegTech Deal news

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• LexisNexis Risk Solutions bolsters AI fraud detection with acquisition of IDVerse - LexisNexis Risk Solutions announces its definitive agreement to acquire IDVerse, enhancing its document authentication and fraud detection capabilities. Read the full story here.

CyberTech news

• Astrix Security secures $45m to enhance identity protection in the AI era - Astrix Security, a leader in the cyber security space, announced a significant boost in funding with a $45m Series B round. Read the full story here.
• Sublime Security secures $60m in Series B to bolster email security tech - Sublime Security, a Washington, D.C.-based startup, has secured a substantial $60m in its latest Series B funding round.?Read the full story here.
• Silent Push secures $10m in Series A to boost global cybersecurity efforts - Silent Push, a Reston, VA-based company, has recently completed a $10m Series A funding round. Read the full story here.

Other RegTech news

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• Leveraging AI for enhanced sustainability reporting under CSRD - In the realm of corporate responsibility, the European CSRD stands as a formidable challenge, urging enterprises to extend their disclosure beyond mere financial metrics to encompass ESG impacts. Read the full story here.