California remains a leader in the US RegTech market as deal activity grew by 40% in H1

US RegTech deals H1 2025

Key US RegTech investment stats in H1 2025:

  • US RegTech deal activity grew by 40% in H1 compared to the last six months of 2024
  • California secured 37% of all deals as they remained the leader in the US RegTech market
  • Clearspeed, a US-based company specialising in AI-enabled voice analytics for risk assessment, secured one of the largest US RegTech deals of the first half of the year with a $60m Series D funding round

US RegTech deal activity grew by 40% in H1 compared to the last six months of 2024

In H1 2025, the US RegTech market showed a strong recovery in both funding and deal activity compared to the previous six-month period.

The sector recorded 177 deals, up 40% from the 126 deals completed in H2 2024, and matching the volume seen in H1 2024.

Funding also rebounded significantly, reaching $2.8bn in H1 2025 — a 46% increase from the $1.9bn raised in H2 2024, though still slightly below the $3.1bn raised in H1 2024.

The sharp dip in H2 2024 followed by a rebound in early 2025 highlights ongoing volatility in the RegTech funding landscape, with investor confidence appearing to return after a period of contraction.

California secured 37% of all deals as they remained the leader in the US RegTech market

California remained the dominant hub for RegTech activity, leading with 66 deals in H1 2025, representing a 37% share — a notable rise from the 49 deals (28% share) recorded in H1 2024.

New York followed with 30 deals (17% share), up from 22 deals (12% share), while Texas completed 13 deals (7% share), replacing Washington, which had 11 deals (6% share) in H1 2024.

While the overall number of deals in the US remained consistent across the first halves of 2024 and 2025, the regional distribution of activity shifted towards greater concentration in key states, particularly California and New York, underscoring their growing influence in the RegTech ecosystem.

Clearspeed, a US-based company specialising in AI-enabled voice analytics for risk assessment, secured one of the largest US RegTech deals of the first half of the year with a $60m Series D funding round

The round was led by Align Private Capital.

The company’s technology supports rapid, frictionless risk decisioning across insurance, government, defence, and banking sectors, providing early detection of fraud and security threats.

The funding will be used to accelerate Clearspeed’s global expansion and enhance its technology capabilities, particularly in secure, high-integrity screening solutions.

With backing from new and existing investors, including IronGate Capital Advisors, Bravo Victor Venture Capital, KBW Ventures, and General David Petraeus, Clearspeed is doubling down on high-trust sectors and further positioning itself as a critical layer in the modern RegTech stack.

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