Key European RegTech investment stats in Q1 2026:
- European RegTech funding surged by 2.1x in Q1
- Deal activity is projected to grow by 8% in 2026
- Average deal value rose by 83% YoY as investors gained confidence in the market
- Zepo Intelligence, a RegTech platform helping organisations defend against AI-powered social engineering attacks, raised $15m in a seed round, making it one of the biggest European RegTech deals of the quarter
European RegTech funding surged by 2.1x in Q1
European RegTech raised $275.6m across 33 deals in Q1 2026, representing a 2.1x increase in funding compared to the $133.6m recorded across 29 deals in Q1 2025, with deal activity also rising by four transactions over the same period.
Measured against 2025, which saw $1.09bn raised across 122 deals, Q1 2026 has already accounted for 25% of that annual funding total within just one quarter.
Deal activity is projected to grow by 8% in 2026
Should the current pace be sustained across all four quarters of 2026, the sector would be on course to raise $1,10bn across around 132 deals for the year, representing a 1% increase in funding and an 8% rise in deal activity compared to 2025.
Average deal value rose by 83% YoY as investors gained confidence in the market
The average deal value in Q1 2026 came in at $8.4m, 83% higher than the $4.6m average recorded in Q1 2025, though marginally below the $9m average seen across all deals completed in 2025.
The fact that Q1 2026 is tracking so closely to 2025’s average deal size, despite the significant step up from Q1 2025, suggests the sector is consolidating around a more consistent investment threshold.
That pattern points to growing investor confidence in the underlying quality of European RegTech businesses, even as broader market conditions remain selectively demanding.
Zepo Intelligence, a RegTech platform helping organisations defend against AI-powered social engineering attacks, raised $15m in a seed round, making it one of the biggest European RegTech deals of the quarter
The round was backed by Kibo Ventures, eCAPITAL and TIN Capital.
Zepo addresses one of the most pressing compliance challenges facing organisations today: the human layer.
As regulators place greater scrutiny on cyber resilience frameworks and insider threat controls, platforms that can demonstrate measurable reduction in human-driven risk are becoming central to institutional compliance programmes.
Zepo’s platform simulates real-world AI-driven attacks, including deepfakes, voice calls and personalised phishing, maps individual employee vulnerabilities and delivers behavioural training tailored to each person, going well beyond the tick-box awareness programmes regulators have increasingly flagged as insufficient.
Founded in 2021 and operating across New York, Madrid, Tel Aviv and Mexico City, the company has reported five times year-on-year revenue growth.
The fresh capital will fund global expansion of its technology and team, with a particular focus on Europe and the US, against a backdrop in which social engineering attacks have surged 200% since the emergence of generative AI.
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