Key Global RegTech investment stats in Q3 2025:
- Global RegTech funding rebounded by 73% YoY in Q3
- Deals over $100m rose by 63% as investors preferred larger deals
- 1Kosmos, a New Jersey-based RegTech leader specialising in identity proofing and passwordless authentication, secured one of the biggest global RegTech deals of the third quarter with a $57m Series B funding round
Global RegTech funding rebounded by 73% YoY in Q3
In Q3 2025, the global RegTech sector recorded a strong rebound in both funding and deal activity compared to the previous year, as investor confidence continued to strengthen across the compliance technology space.
A total of 142 deals were completed in Q3 2025, up 30% from the 109 deals recorded in Q3 2024 and 15% higher than the 124 deals seen in Q2 2025.
Total funding reached $2.03bn, representing a 73% increase from the $1.176bn raised in Q3 2024 and a 70% rise from the $1.193bn recorded in Q2 2025.
The average deal size in Q3 2025 stood at $14.3m, up from $10.8m in Q3 2024 and $9.6m in Q2 2025, highlighting the sector’s growing ability to attract larger rounds as regulatory technology becomes increasingly central to financial institutions’ digital strategies.
Deals over $100m rose by 63% as investors preferred larger deals
Funding from deals under $100m reached $1.38bn in Q3 2025, up 78% from the $777m recorded in Q3 2024 and 16% higher than the $1.193bn raised in Q2 2025.
Meanwhile, larger deals valued at $100m or more accounted for $650m in Q3 2025, representing a 63% increase from the $400m recorded in Q3 2024.
This sharp rise in both small- and large-scale funding rounds underscores a broad-based resurgence in RegTech investment, driven by accelerating demand for solutions addressing data governance, compliance automation, and risk management.
The overall growth trajectory points to a maturing market where both early-stage innovation and late-stage scaling are being well supported by investors.
1Kosmos, a New Jersey-based RegTech leader specialising in identity proofing and passwordless authentication, secured one of the biggest global RegTech deals of the third quarter with a $57m Series B funding round
The round was led by Forgepoint Capital and Origami’s Oquirrh Ventures.
The company’s platform unifies live biometrics, verified identity, and phishing-resistant authentication to combat the growing threat of impersonation-based and account recovery attacks.
By integrating with IAM, CIAM, PAM, and zero trust frameworks, 1Kosmos enables enterprises to implement identity-first security at scale, providing a secure, user-controlled digital identity layer across workforce and customer access.
The funding, will be used to accelerate product innovation, expand globally across North America, EMEA, and APAC, and strengthen partnerships within the cybersecurity ecosystem.
A key milestone for the firm was achieving FedRAMP High authorisation, making it the only Kantara-certified credential service provider approved to manage the US government’s most sensitive workloads.
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