Key US RegTech investment stats in 2025:
- US RegTech funding rose by 17% YoY in 2025
- California continued to dominate the US RegTech marketplace as companies based in the state secured 60% of the top 10 deals for the year
- Quavo Fraud & Disputes, a Delaware-based RegTech specialising in automated fraud and dispute management for financial institutions, secured one of the top US RegTech deals of the year with a $300m investment
US RegTech funding rose by 17% YoY in 2025
In 2025, the US RegTech sector recorded 294 transactions, representing an increase of 29% from the 228 deals completed in 2024.
Total investment also rose, with funding increasing to $5.9bn in 2025 from $5bn in 2024, reflecting a 17% uplift in capital deployed.
The stronger growth in deal volume relative to funding suggests a slight moderation in average deal sizes, although overall activity levels indicate renewed momentum and improved investor confidence across the US RegTech landscape.
California continued to dominate the US RegTech marketplace as companies based in the state secured 60% of the top 10 deals for the year
The top 10 deals in 2025 were increasingly concentrated in California, which strengthened its dominance by securing six top deals compared with four in 2024.
New York and Texas both maintained a presence across the two periods, although New York declined from two deals to one while Texas remained steady with one deal in each year.
Virginia and Delaware emerged as new entrants in 2025, each recording one top deal. In contrast, Washington and Massachusetts, which together accounted for three top deals in 2024, did not feature in the 2025 rankings.
Overall, the shift highlights a growing concentration of large RegTech transactions in California alongside a rotation in secondary state participation.
Quavo Fraud & Disputes, a Delaware-based RegTech specialising in automated fraud and dispute management for financial institutions, secured one of the top US RegTech deals of the year with a $300m investment
The investment was from Spectrum Equity.
The company provides cloud-based solutions that enable banks, FinTechs, and credit unions to streamline and automate fraud resolution and chargeback processes.
Its flagship platform, QFD, leverages artificial intelligence and advanced automation to manage intake, investigation, recovery, and client communications, reducing manual workloads by up to 80% and improving recovery rates to as high as 85%.
Serving more than 12.5 million consumer disputes annually and having recovered over $1.4bn for fraud victims, Quavo is redefining how financial institutions handle fraud and dispute workflows while strengthening customer trust.
The new capital will accelerate product innovation, expand AI-led capabilities, and enhance its go-to-market operations to meet growing demand.
With a proven record of 60% annual revenue growth since 2022, Quavo continues to position itself as a leading force in RegTech, enabling financial institutions to achieve greater compliance efficiency, customer satisfaction, and operational resilience.
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