RegTech seed deals set for new record & From clearing challenges to a revolution in trade surveillance: The Eventus Story

From clearing challenges to a revolution in trade surveillance: The Eventus Story

Travis Schwab – the CEO of Eventus – the global provider of state-of-the-art, at-scale trade surveillance software across all lines of defense – recently spoke to FinTech Global about the company’s journey in becoming a leading provider in trade surveillance. Read the full story?here.

Research highlight

Global RegTech seed deals on track to set new record in 2023, increasing 42% YoY

Global RegTech seed deal investment stats in H1 2023:

• Global RegTech seed deal activity is on track to reach 134 deals in 2023, a 11% increase YoY
• Global RegTech seed investment is on track to reach 314m in 2023, a 5% increase from 2022
• The USA was the most active RegTech seed deal country with 32 deals

RegTech is seeing continued innovation and growth with seed deals increasing in activity during 2023. The global number of seed deals in RegTech sector is poised to hit 134 in 2023, marking a significant 10.7% year-over-year growth. RegTech deal activity in H1 2023 remained similar to H1 2022 levels with one less deal. Global RegTech seed funding is expected to reach $314m in 2023, reflecting a 5% rise compared to the previous year.

Chaos Labs, a company specialising in automated on-chain economic security, had the largest global RegTech seed deal in H1 2023 after raising $20m from 32 investors. The investment round was led by Galaxy Venture Capital and PayPal Ventures. Chaos Labs will use the funding to expand its offerings and build out its suite of risk and security products. During its inaugural year in operation, Chaos Labs forged strategic alliances with prominent DeFi clients, such as Aave, Chainlink, Uniswap, BENQI, and Osmosis. These collaborations were aimed at fortifying and enhancing the security of their protocols, guarding against manipulation and unexpected market upheavals. In addition to this, Chaos Labs provided valuable insights and recommendations for optimizing capital utilization. Chaos Labs CEO and founder Omer Goldberg said, “As the world moves from the opacities of traditional finance to a more open DeFi system, financial risk management must advance accordingly. At Chaos Labs, we believe that every DeFi protocol must regularly conduct robust risk testing to verify and validate that their economic system is secure against hackers and unanticipated volatility. We’ve built a team of expert security and infrastructure engineers, and we’re working to solve for this by bringing world-class security and risk practices in running simulations of millions of economic scenarios on-chain.”

The USA was the most active RegTech seed deal country with 32 deals, a 47% share of total deals. The UK was second, securing four deals which represented a 6% share. Singapore, The Netherlands, and India jointly ranked third with three deals each.

RegTech news

• How Arctic Intelligence is leading the way in business-wide financial crime risk assessments -?In a recent post by Moody’s Analytics, the company offered a long-term perspective on the scourge of financial fraud and how much it costs us today.?Read the full story?here.
• How AI and ML are stepping up in the fight against financial fraud -?US fraud volumes and losses continue their alarming annual increase, exacerbating an already worrisome trend in the financial sector. Read the full story?here.
• How FinTech’s rise demands a proactive approach to regulatory management?- Flagright recently took a deep dive into the topic of firms adopting a proactive approach to regulatory change management.?Read the full story?here.

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Don’t miss the largest RegTech event where compliance leaders converge. Secure your place for our second edition in New York and shape the future of RegTech. Find out more?here.

Regulation news

• Is ESG reporting confidence waning amongst business leaders? -?A recent survey by KPMG suggests only 1 in 4 companies feel highly confident in meeting ESG reporting requirements across several jurisdictions. Read the full story?here.
• TNFD rolls out pivotal framework for nature-related financial disclosures -?The TNFD has unveiled its final recommendations for reporting on nature and biodiversity-linked risks and opportunities. Read the full story?here.
• U.S. Treasury unveils principles for climate-conscious financial institutions -?The U.S. Treasury has officially released its “Principles for Net-Zero Financing & Investment”. Read the full story?here.

RegTech Deal news

• Theta Lake expands partnership with RingCentral?-?Theta Lake Inc has revealed that it has extended its existing partnership with RingCentral?to bolster its compliance suite. Read the full story?here.
• Cato Networks clinches $238m investment at over $3bn valuation -?Cato Networks, the renowned cloud security platform provider, has announced a significant fundraising achievement this week. Read the full story?here.
• European decarbonisation leader Plan A secures $27m in funding?-?Plan A, a corporate carbon accounting, decarbonisation, and ESG reporting software provider, has successfully finalised a $27m funding round. Read the full story?here.

CyberTech news

• Cybersecurity firm Legit Security clinches $40m in Series B raise -?Legit Security, a cutting-edge cybersecurity enterprise, has celebrated a milestone by securing a substantial investment of $40m.?Read the full story?here.
• Dragos fortifies its cybersecurity lead with a $74m boost in funding -?Dragos, recognised for its cybersecurity for industrial controls systems (ICS)/OT environments, has unveiled a $74m Series D extension. Read the full story?here.
• CrowdStrike bolsters enterprise cloud security with $350m Bionic purchase -?CrowdStrike announced plans to acquire Bionic, a trailblazing startup in the Application Security Posture Management (ASPM) sector.?Read the full story?here.

Other RegTech news

• Navigating sustainability reporting: A comprehensive timeline for companies -?Position Green recently provided a comprehensive and detailed timeline for the sustainability journey of businesses.?Read the full story?here.
• What is the regulators role in the adoption of RegTech? -?The adoption of RegTech solutions is shooting through the roof – with companies in the space in more demand than ever before. Read the full story?here.
• TikTok faces $368m fine for neglecting children’s data privacy in Europe?-?TikTok recently received a $368m fine by European regulators for its negligence in ensuring children’s data privacy. Read the full story?here.