As the sizzling hot summer of 2026 rolled through, equally intense was the climbing investment in the RegTech sector seen through the third quarter of the year.
Despite total funding across the top deals for July, August and September 2026 being down on the second quarter, the performance seen for big deals across the three months was strong, especially September.
The watchword identified continuously across the biggest deals was security. Areas such as endpoint and data security figured considerably, however, the most dominant sub-sector seen for investments was AI security.
Going into the fourth quarter of the year, the investment scene in RegTech continues to show positive momentum, as the need for technologies that protect firms and help them stay compliant only becomes more needed in the modern world.
Here is a month-by-month look back at the third quarter.
July
There was $923m raised across the biggest deals in RegTech reported on in July, showcasing healthy demand for regulatory technologies. Dominating the table for the month were firms focused on areas surrounding security.
ThreatLocker lands $190m as AI threats reshape security
ThreatLocker, a global player in Zero Trust cybersecurity, has raised $190m in a Series F round as it looks to counter the growing security risks posed by AI agents and machine-generated exploits.
The round was led by Elephant, with ongoing backing from D. E. Shaw Ventures and Arthur Ventures, alongside a substantial first-time commitment from Koch Disruptive Technologies.
The fresh capital will be channelled into deepening the firm’s controls for AI-related security risks, enhancing its Zero Trust Platform, and pushing into new international markets, starting with a new office in Reading in the UK.
Can AI fix endpoint security? Glow bets $180m it can
Glow, an AI-powered endpoint security company built around a prevention-first model, has come out of stealth with $180m in funding and a valuation of $1.2bn.
Sequoia, Cyberstarts, Greenoaks and Redpoint Ventures co-led the round, joined by Index Ventures, Swish Ventures, Lux Capital, Operator Collective and Holly Ventures. The capital is earmarked for scaling the company’s go-to-market operation in the US and building out Glow Labs, its dedicated research unit.
The company’s argument is that AI has fundamentally altered the endpoint, which has become the entry point for AI into the enterprise as staff take up new tools and connect agents more quickly than security teams can vet them.
Gauntlet raises $125m to set the rules for DeFi capital
Gauntlet, a digital asset risk and optimisation firm, has secured $125m in a Series C round as it looks to expand its footprint across the markets and institutions building the onchain economy.
The round was led by SBI Holdings through its American subsidiary, SBI Holdings USA. The fresh capital is earmarked for three near-term priorities: building out infrastructure to deepen Gauntlet’s presence in traditional capital markets, including widening stablecoin coverage from USD and EUR to MXN, JPY and additional foreign currencies; expanding its global headcount with an AI-supported operating model; and deploying capital to launch and accelerate new onchain products.
Gauntlet currently curates more than $1.5bn in supplied assets through vaults operating across the world’s largest digital asset markets.
Norm Ai raises $120m to expand AI-native legal platform
Norm Ai, an AI legal technology company, has raised $120m in Series C funding at a $1.2bn valuation to expand its AI-native legal platform and accelerate the deployment of AI agents across regulated industries.
The funding round was led by Khosla Ventures and included participation from Blackstone, Bain Capital Ventures (BCV), Craft Ventures, Coatue, Vanguard, New York Life, TIAA, Tony James, Jeff Hammes and Fenwick LLP, bringing the company’s total funding to more than $260m since it was founded less than three years ago.
Norm Ai was designed to embed legal and regulatory requirements into AI agents by combing AI engineering with legal expertise.
Onyx raises $113m to keep humans in control of AI agents
Onyx, a security company behind the Secure AI Control Plane, has closed a $113m Series B round to help enterprises govern the growing number of AI agents operating inside their organisations.
The round was led by Bessemer Venture Partners, with backing from Cyberstarts, TCV, Conviction, FirstMark, Vintage Investment Partners, QuantumLight and G Squared.
According to the company, the capital will be used to expand a platform designed to preserve human oversight as autonomous agents take on a rising share of enterprise work, rather than to compete within an established product category.
Neo lands $100m as agentic AI outpaces security teams
Neo has emerged from stealth with $100m in funding to help enterprises govern the rapid spread of AI agents across their software estates.
The round was led by Andreessen Horowitz and Bessemer Venture Partners, with Craft Ventures and Merlin Ventures also taking part. The fresh capital will be channelled into an aggressive expansion of Neo’s engineering and go-to-market functions, as businesses race to lock down security around fast-growing agentic software adoption.
The company argues that enterprise environments are transforming more quickly than legacy security programmes can keep pace with.
Can Oak’s $60m seed fix the identity security crisis?
Oak, a security company building what it calls an Identity Operating System, has stepped out of stealth with $60m in seed capital to take on the fragmented identity governance market.
The round was co-led by Accel, Greylock Partners and CRV, with additional backing from Hetz Ventures, AlphaDrive Ventures and a group of strategic angel investors. Rather than remaining a concept, Oak’s platform is already generally available and running inside enterprise customers.
The company argues that identity has become the front door of the modern enterprise and, as a result, the primary route attackers use to break in. Despite this, many organisations remain unable to state with confidence who can access their systems at any moment.
Why Mate Security’s context play just raised $35m
Mate Security, an AI-native security operations platform provider, has surpassed $50m in total funding after closing a $35m Series A round just eight months after leaving stealth.
The round, first reported by Axios, was led by Canaan Partners and drew backing from Insight Partners, Team8 and M12, the venture arm of Microsoft. Existing investors also returned for the raise, which builds on the oversubscribed $15.5m Seed round unveiled when the firm came out of stealth.
The capital injection comes amid rapid commercial momentum, with the company claiming growth of over 500% since Q3 2025.
August
As summer rolled on, the top RegTech deals for August came to a strong $976m in total raises. The deals that stood out were focused on areas surrounding AI security, showcasing the growing demand in the sector for safety.
Horizon3 triples valuation with $250m raise for AI security
Horizon3 has secured $250m in Series E funding at a valuation exceeding $2bn, a threefold jump from the $650m it commanded at Series D just over a year ago.
The oversubscribed round was co-led by existing backers NightDragon and NEA. Seven new investors joined, comprising Acrew Capital, Blue Cloud Ventures, Demeter Group, Singapore’s EDBI, PSG, SAIC and Sapphire Ventures, alongside five returning shareholders: Craft Ventures, Prosperity7 Ventures, Qualcomm Ventures, Ridge Ventures and SignalFire.
As part of the deal, NightDragon founder and CEO Dave DeWalt, who previously led FireEye and McAfee, and NightDragon managing director Morgan Kyauk will take seats on Horizon3’s board.
Socure hits $5.2bn valuation in fraud-fighting AI push with $176m raise
Socure has landed a strategic growth investment valuing the business at $5.2bn, alongside its acquisition of Fravity, an agentic platform built to automate fraud, risk and compliance operations.
The funding round was led by Summit Partners, with backing from Goldman Sachs Alternatives, Wells Fargo, Docusign and other participants. The deal combines fresh primary capital with a secondary tender offer that allows existing employees to sell shares.
Socure frames the twin announcement as evidence of its widening footprint as a trust infrastructure provider at a moment when artificial intelligence has reshaped both the scale of fraud and money laundering and the tools used to counter them.
Alice raises $140m as AI attacks outpace defences
Alice, an AI trust, safety and security business that shields billions of internet users from online manipulation, has closed a $140m funding round as enterprises race to contain the risks of giving AI systems real autonomy.
The round was led by the Apax Digital Funds, with fresh backing from Samsung, SentinelOne, Maj Invest, MoreTech and Phoenix Insurance. Existing backers Resolute Ventures, Grove Ventures, CRV, Highland Europe, Vintage Investments, Norwest Venture Partners, NFX and Claltech also took part, lifting Alice’s total funding to $280m.
The raise lands as pressure builds across the industry to keep pace with adversaries who are exploiting AI at speed. Alice built its foundations by tracking how bad actors abuse the internet’s biggest platforms, amassing a proprietary record of real-world attacks that it now applies to forecasting and blocking threats against AI systems specifically.
Zenity lands $125m as AI agent security race heats up
Zenity, the AI security and governance platform built specifically for AI agents, has closed a $125m Series C round.
The round was led by Norwest, with new backers Qumra Capital, SoftBank Vision Fund 2, Hitachi Ventures and LG Technology Ventures joining existing investors Vertex Ventures, Third Point Ventures, DTCP and Intel Capital. The capital will fund global expansion, further platform development and rising enterprise demand for agent-focused security.
While much of the cybersecurity industry has concentrated on defending models or inspecting individual prompts, Zenity argues the threat has moved on.
Obsidian Security lands $85m to police rogue AI agents
Obsidian Security, a platform securing non-human identities and AI agents across third-party applications, has closed an $85m Series D funding round.
The round was led by Crescent Cove Advisors, with participation from existing backers Greylock Partners and Menlo Ventures. It follows a period of accelerating customer growth for Obsidian, with more than 100 customers now spending over $100K a year on the platform and upwards of 14 customers spending more than $1m annually.
The raise comes as businesses roll out AI agents built on leading models, including Anthropic’s Claude, OpenAI’s ChatGPT and Microsoft Copilot Studio, and look for ways to govern how those agents behave once embedded in the third-party applications that underpin daily operations.
OLIGO Security raises $60m to counter AI-speed attacks
OLIGO Security, the runtime security company, has raised $60m in fresh funding as it races to help organisations keep pace with attacks that are now being planned and executed by AI at machine speed.
The round takes OLIGO’s total funding to $140m and drew backing from Ballistic Ventures, Canon Capital, Greenfield Partners, Lightspeed Venture Partners, Red Dot Capital Partners and TLV Partners, alongside angel investors including Eyal Waldman, the co-founder of Mellanox Technologies, which NVIDIA acquired for $6.9bn.
The company said the raise caps a strong year of growth, with revenue climbing 300% year-on-year and its valuation more than doubling since its Series B.
Corma raises $60m to fix AI’s cyber defence gap
Corma has raised $60m in seed funding, with the round led by Sequoia Capital and joined by Khosla Ventures and Coatue.
The company, which already counts Fortune 100 clients among its customers, is building what it describes as the first foundation model designed specifically for defensive cybersecurity work.
The raise comes as Corma highlights a widening gap between offensive and defensive capabilities in AI-driven cybersecurity.
inforcer’s $50m Series C targets AI-driven cybercrime
inforcer has secured $50m in a Series C round headed by global software investor Insight Partners.
Insight Partners has taken a minority position in the business, joining existing backers Meritech Capital and Dawn Capital. The investor brings extensive experience from its portfolio across cloud, security and infrastructure, which features Kaseya, Veeam, SentinelOne, Darktrace, Mimecast and Wiz.
Mindgard raises $30m to tackle AI security risks
Mindgard, an AI security company headquartered in Boston and London that grew out of more than a decade of research at Lancaster University, has closed a $30m Series A funding round.
The round was led by Album VC, with participation from Karma Ventures alongside existing backers .406 Ventures, Atlantic Bridge, IQ Capital and Lakestar.
Mindgard intends to put the fresh capital towards scaling its product, engineering, sales and marketing functions as it responds to growing customer demand.
September
September proved to be a red-letter month for RegTech deals, with a whopping $1.74bn raised across the biggest deals. It was a month dominated by big deals, with standouts being seen in the security space.
Here are the deals.
Island lands $400m Series F at $6.4bn valuation
Island, the enterprise-focused agentic control plane provider, has closed a $400m Series F funding round that lifts its valuation to $6.4bn, more than twice the figure it reached in 2024.
Evolution Equity Partners headed the investment, joined by a mix of new and returning backers.
The fresh capital will support the next stage of Island’s expansion and product development as businesses increase their use of AI agents and overhaul the way work is carried out. The company positions its technology as the layer that gives organisations the oversight, control and auditing capabilities required in the AI era.
Cyera lands $400m from Goldman Sachs to secure AI agents
Cyera, a data security company building a unified data and identity platform for enterprises, has secured a $400m investment from Goldman Sachs to strengthen control over what AI agents can access and do.
The capital comes from Growth Equity at Goldman Sachs Alternatives as an extension to Cyera’s Series G, which was led by Evolution Equity. The funding supports the company’s goal of creating one platform to govern access for every human, machine and AI agent operating within an organisation.
Cyera plans to put the money towards new features on its AI Security product roadmap. It will also use the funding to expand further into the federal market and to keep growing internationally across EMEA and APAC, regions where enterprises increasingly want oversight of their agents.
Upwind becomes first unicorn in modern cloud security with $250m
Upwind has raised $250m in a Series B funding round, propelling the company to unicorn status just two years after it emerged from stealth.
The new investment takes Upwind’s total funding to date beyond $430m, a figure that places the company among the most heavily capitalised businesses tackling cloud security challenges.
The milestone marks what the firm describes as the first instance of a unicorn valuation being reached in the modern cloud security space, a distinction it frames as validation of demand for its approach rather than an end point.
Cylake raises $245m to challenge cloud-first cybersecurity
Cylake has raised $245m through a convertible note ahead of the beta launch of its next-generation product.
The round saw participation from Lightspeed Venture Partners, Picture Capital and Redpoint Ventures, and pushes the company’s total funding to $290m, following a $45m seed round closed in March 2026 under the leadership of Greylock Partners.
Cylake intends to direct the new capital towards further development of its AI-native, fully sovereign cybersecurity platform, alongside continued expansion of its workforce.
HiddenLayer bags $100m to guard enterprise AI agents
HiddenLayer, the AI security company that protects agentic, generative and predictive AI applications for enterprises, has closed a $100m Series B funding round.
The round was led by Delta-v Capital, with additional backing from Ten Eleven Ventures, Morgan Stanley, M12, Microsoft’s Venture Fund and Booz Allen Ventures.
HiddenLayer plans to put the capital towards expanding its enterprise platform, with a particular focus on its Agentic Runtime Security offering and a newly launched product called Agent Harness Security.
MCO lands $100m+ growth financing from Accel-KKR
MCO (MyComplianceOffice), a compliance management software specialist serving the financial services sector, has secured more than $100m in strategic growth financing from Accel-KKR Credit Partners.
The funding comes from Accel-KKR Credit Partners, a private credit vehicle run by Accel-KKR, the Silicon Valley-based investment firm focused on software businesses worldwide. MCO plans to put the money towards its long-term growth ambitions. That includes speeding up product development, deepening its work on AI, and pushing into new markets.
The deal arrives as financial institutions face growing regulatory pressure. They must oversee staff conduct, communications, transactions and relationships with third parties. MCO has been adding capabilities over the last 12 months to help clients cope.
MIND raises $72m as AI turns data security urgent
MIND, the AI-native data loss prevention platform, has raised $72m in Series B funding, marking its second raise in just over a year as it scales efforts to protect enterprise data in the age of artificial intelligence.
The round was led by Crosspoint Capital Partners, with continued backing from existing investors YL Ventures and Paladin Capital Group. It follows MIND’s $30m Series A close a year earlier and takes the company’s total funding to $112m.
The raise lands at a pivotal juncture for the multibillion-dollar DLP sector, as artificial intelligence simultaneously widens the exposure of sensitive information and hands security teams new tools to contain it.
Reco raises $55m to secure the agentic enterprise
Reco, an agentic security company that protects AI agents and the environments they operate in, has closed an additional $55m in funding, lifting its total capital raised to $140m.
AT&T Ventures took part as a strategic investor, while Forestay and Quadrille Capital joined as new backers. The company plans to put the capital towards growing its sales, partnerships, channels and customer support functions.
The raise comes as Fortune 500 firms increasingly look for ways to manage AI agents, which are now spreading across applications, collaboration software, browsers, copilots and automated processes.
Luzern Risk raises $45m Series B led by Insight Partners
Luzern Risk, a full-service captive manager specialising in alternative risk solutions, has closed a $45m Series B funding round.
The round was led by Insight Partners, with participation from Trust Ventures and existing backer Caffeinated Capital, which previously led the company’s seed round in 2023 and its $12m Series A in 2025.
Luzern Risk has built an AI-native technology platform designed to significantly shorten the time needed to launch and run bespoke captive insurance programmes at scale.
Guardio raises $40m as scammers turn to AI at scale
Guardio, a consumer-focused cybersecurity company that shields individuals from scams, phishing attempts and AI-generated fraud, has raised $40m and reached a valuation of $1.1bn.
The milestone follows a $40m funding round backed by Wiz co-founder and CEO Assaf Rappaport, alongside returning investors ION Crossover Partners, Union Tech Ventures, Vintage Investment Partners, Cerca Partners and Emerge Ventures.
The fresh capital takes Guardio’s cumulative funding to date to $167m.
Baselayer lands $35m to verify AI agents before fraud hits
Baselayer, an identity and risk infrastructure provider used by one in five US financial institutions, has secured $35m in Series A funding and unveiled a product designed to verify autonomous software before it transacts.
M13 led the round, joined by Torch Capital, Picus Ventures, Afore Capital and Socure’s Matt Thompson. Alongside the raise, Baselayer introduced its Agentic Identity Suite, which it describes as the first interoperable trust layer and agentic fraud consortium built for the global agentic economy.
The company argues that commerce driven by AI agents is expanding faster than the safeguards needed to support it. Stripe revealed in June that AI agents now generate 70% of the commands used to pull data through its API.
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
