Key Global RegTech investment stats in Q2 2025:
- Global RegTech deal activity grew by 22% YoY in Q2
- US companies secured 56% of all deals to cement their position as global RegTech leaders in the second quarter of the year
- Clearspeed, a US-based company specialising in AI-enabled voice analytics for risk assessment, secured one of the largest Global RegTech deals of the quarter with a $60m Series D funding round
Global RegTech deal activity grew by 22% YoY in Q2
In Q2 2025, the Global RegTech industry saw a sharp drop in funding despite a rise in deal activity.
The sector recorded 124 funding rounds, a 22% increase from the 102 deals completed in Q2 2024.
However, funding fell significantly to $1.2bn, a 41% decrease from the $2bn raised in Q2 2024.
Compared with Q1 2025, funding declined by 48% from $2.3bn, even as the number of deals increased slightly from 120.
This divergence highlights a challenging environment where more companies are securing rounds, but at lower average deal sizes, reflecting a cautious stance from investors.
US companies secured 56% of all deals to cement their position as global RegTech leaders in the second quarter of the year
The US remained the dominant RegTech market in Q2 2025, recording 93 deals (56% share), a 29% increase from the 72 deals in Q2 2024, further strengthening its global leadership in the sector.
The UK followed with 14 deals (8% share), replacing France, which had nine deals (6% share) in the same quarter last year.
Israel entered the top three with four deals (2% share), while India, which had recorded seven deals (5% share) in Q2 2024, dropped out of the leading group.
Despite the funding slowdown, the US expanded its share of global deal activity, reinforcing its position as the key hub for RegTech innovation.
Clearspeed, a US-based company specialising in AI-enabled voice analytics for risk assessment, secured one of the largest Global RegTech deals of the quarter 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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