Key Global RegTech investment stats in Q1 2025:
- Global RegTech funding bounced back by two-thirds in Q1 2025
- The growth in funding was driven by deals over $100m as it surged by 68% QoQ
- Norm Ai, a leading Regulatory AI agent company transforming legal and compliance processes for enterprises, closed one of the biggest global RegTech deals of the quarter with a $48m funding round
Global RegTech funding bounced back by two-thirds in Q1 2025
In the first quarter of 2025, the Global RegTech market saw a notable rebound in both deal volume and funding.
Q1 2025 closed with 121 deals, marking a 36% increase from the 88 deals recorded in Q4 2024, though still 17% lower than the 145 deals seen in Q1 2024.
Total funding in Q1 2025 reached $2.3bn, representing a 63% rise from the $1.4bn raised in Q4 2024 and an 18% increase over the $1.9bn secured in Q1 2024.
The average deal size for Q1 2025 increased to $19m, up from $16m in Q4 2024 but down slightly from the $21m seen a year earlier.
These figures suggest a cautious return of investor confidence, buoyed by growing demand for compliance solutions and digital risk management tools.
The growth in funding was driven by deals over $100m as it surged by 68% QoQ
Funding from deals under $100m totalled $1.1bn in Q1 2025, down 6% from the $1.2bn recorded in Q1 2024 , but showing a healthy 58% increase from the $686m raised in Q4 2024.
Larger deals valued at $100m or more accounted for $1.2bn, a 68% surge from the $715m recorded in Q4 2024 and a 53% rise compared to the $782m raised in Q1 2024.
This renewed activity in high-value deals points to growing investor willingness to back major RegTech players, indicating optimism for scalable solutions amidst tightening regulatory landscapes and ongoing digital transformation across the financial services sector.
Norm Ai, a leading Regulatory AI agent company transforming legal and compliance processes for enterprises, closed one of the biggest global RegTech deals of the quarter with a $48m funding round
The funding round brought the company’s total capital raised over the past 18 months to $87m.
Backed by a strong syndicate including Coatue, Craft Ventures, Blackstone Innovations Investments, Citi Ventures, and Bain Capital.
Norm Ai delivers a “compliant by design” platform that integrates regulatory compliance directly into business workflows.
Its proprietary Legal Engineering Automation Platform (Leap) allows legal experts to convert complex regulatory obligations into AI-powered systems, enabling organisations to automate compliance across AI-generated content, internal documentation, marketing materials, and contractual communications.
This innovation supports large enterprises in embedding compliance into day-to-day operations, improving efficiency and mitigating regulatory risk.
With growing global demand for AI compliance infrastructure, Norm Ai is at the forefront of defining regulatory standards in the age of automation.
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