Why traceability is vital for compliance & UK RegTech deals plummet 59% in 2024

Why traceability and trust are vital for compliance technology

In an age where the regulatory landscape is getting more complex and multifaceted by the year, compliance as a box-ticking activity is becoming a step not far enough for many financial firms. To meet the moment, many businesses are needing to demonstrate more traceability and accountability in their compliance operations. ?

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Research highlight

UK RegTech deal activity dropped by 59% in 2024 with no deals over $100m

Key UK RegTech investment stats for 2024:

? UK RegTech deal activity dropped by 59% YoY

? There were zero deals over $100m in 2024 as investors prioritised smaller, early-stage deals

? MirrorWeb, a leading provider of digital communications archiving and regulatory compliance software secured $63m in a funding round making it the biggest UK RegTech deal in 2024

UK RegTech deal activity dropped by 59% YoY

The UK RegTech market saw a sharp decline in deal volume in 2024, with only 27 deals completed, marking a 59% drop from the 66 funding rounds recorded in 2023 and an 88% decline from the 223 deals seen in 2020.

Despite this, total funding in 2024 reached $318m, a slight 1% increase from the $310m raised in 2020 but a steep 48% decline from the $612m secured in 2023.

The average deal size surged to $11.8m in 2024, representing a 27% increase from $9.3m in 2023 and a massive 416% jump from $1.4m in 2020. ?

There were zero deals over $100m in 2024 as investors prioritised smaller, early-stage deals

Notably, all funding in 2024 came from deals under $100m, totalling $318m.

This represents a 36% increase from the $234m recorded in 2023 and a 51% rise from the $210m secured in 2020.

However, unlike in previous years, there were no deals exceeding $100m in 2024, in contrast to the $378m raised from larger deals in 2023 and the $100m recorded in 2020.

This signals a cautious investment environment, where funding is being directed toward smaller-scale deals rather than high-value transactions.

MirrorWeb, a leading provider of digital communications archiving and regulatory compliance software secured $63m in a funding round making it the biggest UK RegTech deal in 2024

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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