Key US RegTech investment stats in Q2 2026:
- US RegTech deal activity dropped 10% QoQ in Q2
- California retained its position as the main US RegTech hub as companies based in the state secured 30% of all deals
- Greenboard, an AI-native securities compliance platform serving more than 500 financial institutions, raised $20m in total funding, marking one of the biggest US RegTech deals of the quarter
US RegTech deal activity dropped 10% QoQ in Q2
US RegTech recorded 84 deals in Q2 2026, down 10% from 97 transactions in Q1 2026 and 10% from 93 deals in Q2 2025.
Funding fell to $521.5m, a 53% decline from $1.1bn in Q1 2026 and a 28% drop from $726.2m in Q2 2025.
Both measures retreated across the board in Q2 2026, pointing to a quarter of reduced investor activity following a stronger start to the year.
The scale of the sequential funding decline in particular suggests that Q1 2026 was buoyed by a small number of larger transactions that did not carry through into the following quarter.
California retained its position as the main US RegTech hub as companies based in the state secured 30% of all deals
California retained its position as the most active US RegTech market in Q2 2026, recording 25 deals and a 30% share of total activity.
This compares with 28 deals and a 30% share in Q2 2025, a modest 11% decline in volume that left its proportional standing unchanged.
New York held second place in both periods, slipping from 15 deals and a 16% share in Q2 2025 to 12 deals and a 14% share in Q2 2026, a 20% fall in volume and a slight narrowing of its share.
Texas retained third position, edging up from seven deals and an 8% share in Q2 2025 to eight deals and a 10% share in Q2 2026, a 14% rise in volume that also lifted its proportion of overall activity.
The ranking remained unchanged across both periods, which in the context of a broadly declining market points to a degree of stability in where US RegTech investment is concentrated, with the three leading states maintaining their relative positions even as overall activity pulled back.
Greenboard, an AI-native securities compliance platform serving more than 500 financial institutions, raised $20m in total funding, marking one of the biggest US RegTech deals of the quarter
The Series A was led by Base10 Partners, with participation from Y Combinator, General Catalyst, Wayfinder Ventures, Commerce Ventures, Transpose Platform, Liquid2 Ventures and a number of strategic industry investors.
Founded in 2023, Greenboard replaces fragmented legacy compliance tools with a single unified system covering employee compliance, communications supervision, marketing review, third-party oversight and firm compliance operations.
Alongside the funding, the company has launched GreenboardGo, a conversational AI layer built directly on top of a firm’s compliance books and records, enabling employees to receive instant answers to compliance questions rooted in their firm’s own policies, while routing decisions requiring judgement to the relevant compliance owner for review and sign-off.
Early adopters report meaningful efficiency gains, with Root Financial reclaiming around 24 hours per week previously consumed by manual tasks and JMG Financial Group cutting compliance onboarding time by 60% and consolidating three legacy systems into one.
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