Key European RegTech investment stats in Q1 2025:
- European RegTech funding halved in Q1 YoY
- European top 10 RegTech deals in Q1 saw nine countries represented as investors diversified
- ThreatMark, a Czech-based RegTech innovator specialising in behaviour-based fraud prevention, secured one of Europe’s largest RegTech deals of the quarter with a $23m funding round
European RegTech funding halved in Q1 YoY
In Q1 2025, the European RegTech sector recorded $134m in funding across 29 deals, representing a 52% decline in capital raised compared to the $280m secured in Q1 2024.
Deal volume also fell slightly by 15%, down from 34 transactions in the previous year’s first quarter.
This sustained reduction in funding points to a cautious investment environment across the continent, possibly influenced by ongoing regulatory changes, macroeconomic instability, and a broader pullback in venture capital activity across early-stage sectors.
The sharp fall in funding, despite only a moderate decline in deal count, may also suggest a shift toward smaller or more conservative investment rounds.
European top 10 RegTech deals in Q1 saw nine countries represented as investors diversified
There was a marked diversification in the geographical distribution of top 10 deals in Q1 2025.
While the United Kingdom led in Q1 2024 with five out of the top 10 deals, its presence dropped to just one in 2025.
In contrast, Q1 2025 saw a much more balanced spread, with the Czech Republic securing two top deals, while the United Kingdom, Denmark, Italy, the Netherlands, Germany, Ireland, Portugal, and Spain each secured one.
Germany and Denmark were the only countries beside the UK to appear in the top 10 for both periods, underlining their continued relevance in the European RegTech landscape.
This broadened geographical mix in 2025 reflects a more decentralised investment environment, with a wider range of European markets now attracting significant funding — an encouraging sign of the sector’s evolving maturity and increasing regional diversity.
ThreatMark, a Czech -based RegTech innovator specialising in behaviour-based fraud prevention, secured one of Europe’s largest RegTech deals of the quarter with a $23m funding round
The round comprised of $15m from Octopus Ventures and Riverside Acceleration Capital, and an $8m convertible note from Springtide Ventures Fund.
The company leverages advanced AI and machine learning to protect financial institutions against sophisticated online fraud schemes, including authorised push payment scams, by continuously analysing behavioural, transactional, device, and threat data to detect anomalies in real time.
ThreatMark’s platform offers a scalable and accessible fraud detection solution that enables mid-market banks to operate with the same level of defence as global tier-one institutions.
With online banking fraud losses reaching $486bn globally in 2023, the company’s approach to adaptive fraud detection has seen growing adoption, underpinned by a 75% year-over-year ARR increase.
The new capital will accelerate product development, bolster its AI capabilities—including predictive analytics and threat modelling—and support expansion across the UK and US markets, further cementing its position as a leader in digital fraud intelligence.
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