Key global RegTech investment stats in 2025:
- Global RegTech deal activity grew by 26% YoY in 2025
- Californian companies dominated the US RegTech marketplace with 40% of all deals from the country
- Vanta, a leading RegTech specialising in AI-powered trust management, secured one of the biggest RegTech deals of the year with a $150m Series D funding round at a $4.15bn valuation
Global RegTech deal activity grew by 26% YoY in 2025
In 2025, the US RegTech market showed signs of stabilisation following the severe contraction seen in 2024.
Total funding reached $5.9bn, representing a 17% increase from the $5bn raised in 2024, while deal activity also improved, with 381 transactions, up 26% from the 303 deals recorded the previous year.
Despite this rebound, activity remained well below historic levels, with both funding and deal volumes still sharply lower than in 2021, when the sector attracted $14.1bn across 796 deals, highlighting how far the market has retrenched from its earlier peak.
Californian companies dominated the US RegTech marketplace with 40% of all deals from the country
At state level, California retained its position as the leading RegTech hub in 2025, completing 151 deals (40% share), a 62% increase from the 93 deals (31% share) recorded in 2024.
New York followed with 58 deals (15% share), marking a 26% rise from 46 deals (15% share) the year before.
Texas ranked third with 25 deals (7% share), replacing Florida, which had logged 19 deals (6% share) in 2024.
Although overall activity remains well below previous highs, the growing concentration of deals in California and New York indicates that these core markets are strengthening their dominance within the US RegTech landscape.
Vanta, a leading RegTech specialising in AI-powered trust management, secured one of the biggest RegTech deals of the year with a $150m Series D funding round at a $4.15bn valuation
The funding round was led by Wellington Management alongside existing backers including Goldman Sachs Alternatives, Sequoia, J.P. Morgan and Atlassian Ventures.
Founded in 2018, Vanta has evolved from helping startups automate SOC 2 compliance to offering a full-stack platform that enables over 12,000 companies across 58 countries to continuously monitor risk, manage compliance, and prove trust in real time.
Its technology integrates zero-touch verification, vendor risk management, access reviews and real-time Trust Centers, moving security from static checks to continuous, automated assurance.
AI innovations such as the Vanta AI Agent and Questionnaire Automation streamline evidence collection, accelerate security reviews, and cut response times by over half, saving teams up to 12 hours per week.
The new funding brings Vanta’s total capital raised to $504m since 2021 and will be used to expand AI-driven solutions in areas such as third-party risk and government compliance, reinforcing its position as a global leader in reshaping the governance, risk, and compliance (GRC) landscape.
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