Key US RegTech investment stats in Q3 2025:
- US RegTech deal activity increased by 15% QoQ
- Californian companies secured 37% of all deals to cement the states’ position as the leader in the US RegTech market for Q3
- WorkFusion, a RegTech firm specialising in AI agents for financial crime compliance, secured one of the biggest US RegTech deals of the third quarter with a $45m funding round
US RegTech deal activity increased by 15% QoQ
In Q3 2025, the US RegTech market recorded 107 deals, a 15% increase from the 93 deals in Q2 2025 and a significant 62% rise from the 66 deals completed in Q3 2024.
Funding also strengthened notably, reaching $1.4bn, marking an 86% increase from the $726.2m raised in Q2 2025 and a 59% rise from the $848.2m secured in Q3 2024.
This strong rebound suggests renewed investor confidence in US RegTech solutions, particularly those addressing compliance automation, financial crime prevention, and emerging AI-driven regulatory technologies, following a more cautious investment environment seen earlier during the previous year.
Californian companies secured 37% of all deals to cement the states’ position as the leader in the US RegTech market for Q3
California maintained its position as the leading RegTech hub in Q3 2025, with companies in the state completing 40 deals (37% share), though this represents a 54% increase from the 26 deals (39% share) in Q3 2024.
New York ranked second with 19 deals (18% share), reflecting a 73% increase from the 11 deals (17% share) recorded last year.
Virginia entered the top three with 9 deals (8% share), replacing Texas, which had only 2 deals (3% share) in Q3 2024.
Although California’s percentage share edged down slightly, its absolute deal volume grew substantially, and both New York and Virginia increased their presence, illustrating a broadening of activity across the US RegTech landscape as investment momentum accelerated.
WorkFusion, a RegTech firm specialising in AI agents for financial crime compliance, secured one of the biggest US RegTech deals of the third quarter with a $45m funding round
The round was led by Georgian, marking a significant step in scaling its automation technology across the $155bn FCC operations market.
The company develops AI-driven agents that automate labour-intensive compliance processes such as sanctions screening, adverse media checks, KYC reviews and fraud alert investigations, with its solutions already deployed at major global banks and automating over 1m alert hits daily.
Backed by a wide group of investors including Serengeti Asset Management, Nokia Growth Partners III, Teralys Capital and Chubb, the new capital will support WorkFusion’s push to widen adoption of its agentic AI platform, which it positions as a faster and more cost-effective alternative to traditional hiring or outsourcing models.
Having undergone a strategic restructuring in 2022, the firm now aims to capitalise on rising demand for compliance automation, enabling financial institutions to scale operations more efficiently while reducing risk and alleviating mounting pressures on compliance teams.
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