Key French RegTech investment stats for 2024:
- French RegTech funding dropped by a fourth in 2024
- There were zero deals over $100m as investors prioritised lower risk investments
- Dotfile, a Paris-based RegTech company specialising in AI-driven compliance automation, secured one of the top French RegTech deals of the year with a $6.7m funding round
French RegTech funding dropped by a fourth in 2024
The French RegTech market saw a notable decline in total funding in 2024, with deal volume staying constant with 2020 levels.
The year closed with 22 deals, down 27% from the 30 recorded in 2023 but remaining stable compared to the 22 deals in 2020.
Total funding in 2024 amounted to $127m, reflecting a 26% drop from the $171m raised in 2023 and a 63% decline from the $343m secured in 2020.
The average deal size in 2024 stood at $5.8m, marking a slight 1% increase from $5.7m in 2023 but a steep 63% fall from the $15.6m recorded in 2020, indicating a significant shift away from larger deals.
There were zero deals over $100m as investors prioritised lower risk investments
Funding from deals under $100m totalled $127m in 2024, representing a 26% drop from the $171m recorded in 2023 but an 11% increase from the $143m seen in 2020.
Notably, no deals exceeding $100m were recorded in either 2023 or 2024, marking a shift from 2020 when such deals contributed $100m to total funding.
The absence of high-value transactions for a second consecutive year highlights a more conservative investment environment, with investors favouring smaller, lower-risk deals.
The downturn in overall funding suggests that the sector is facing increased challenges in securing capital, as economic uncertainty and regulatory pressures weigh on investment decisions.
Dotfile, a Paris-based RegTech company specialising in AI-driven compliance automation, secured one of the top French RegTech deals of the year with a $6.7m funding round
The round was led by Seaya Ventures, alongside Serena and Hexa.
The investment will accelerate Dotfile’s R&D efforts and international expansion as it continues to transform compliance processes for financial institutions and regulated businesses.
Its all-in-one compliance platform streamlines Know Your Business (KYB) verification, reducing the cost and complexity of regulatory adherence while mitigating fraud risks.
By leveraging AI, Dotfile automates customer onboarding and Anti-Money Laundering compliance, helping businesses verify partners and customers in just 10 seconds.
With compliance costs reaching up to 10% of banks’ revenues and legacy systems struggling to keep pace, Dotfile’s innovative approach positions it at the forefront of the industry.
The company, which already serves over 50 clients across 10 countries, including fintech leaders like Spendesk and Younited Credit, aims to expand further into key financial markets following its recent London office launch.
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