Key Global RegTech investment stats in Q1 2025:
- Funding increased by 18% in Q1 2025 YoY
- Global RegTech funding projected to grow by over a third in 2025
- Deals over $100m doubled in the first quarter as investors prioritised larger deals
- Cybereason, a leading global cybersecurity company known for its advanced endpoint detection and response (EDR) solutions and expert consulting services, secured one of the largest RegTech deals in Q1 with a $120m funding round
Funding increased by 18% in Q1 2025 YoY
In Q1 2025, the Global RegTech market experienced a decline in deal volume but an uptick in overall funding compared to the same period in 2024.
A total of 121 deals were completed in the first quarter of 2025, marking a 17% drop from the 145 deals recorded in Q1 2024.
Despite this slowdown in activity, funding rose to $2.3bn, an 18% increase from the $1.9bn raised in Q1 2024.
This suggests a growing investor preference for fewer but higher-value opportunities.
The average deal size in Q1 2025 rose sharply to $18.9m, up from $13.4m in Q1 2024, highlighting a shift toward larger ticket investments.
Global RegTech funding projected to grow by over a third in 2025
If the Q1 2025 trend were to continue across the rest of the year, total 2025 funding would reach $9.1bn from around 484 deals.
This would represent a 39% increase in funding from the $6.5bn raised in 2024, and a 2.4x jump in deal volume from the 205 deals seen last year.
While these projections appear highly optimistic, they underscore the momentum in RegTech funding despite deal count compression in the latest quarter.
The numbers may ultimately stabilise in the coming quarters, but the current trend points to a more mature and confident investment landscape for regulatory technologies.
Deals over $100m doubled in the first quarter as investors prioritised larger deals
In Q1 2025, deals under $100m totalled $1.1bn, down 6% from $1.2bn in Q1 2024. Conversely, deals worth $100m or more surged to $1.2bn in Q1 2025, up 53% from $782m a year earlier.
For full-year 2024, deals under $100m accounted for $3.5bn of the $6.5bn total, while deals above $100m made up $3bn.
The current trajectory suggests a potential shift in the balance, with large-scale investments becoming more dominant.
This trend reflects increased confidence in established RegTech players, as well as a broader push for scalable compliance solutions in response to tightening global regulations.
Cybereason, a leading global cybersecurity company known for its advanced endpoint detection and response (EDR) solutions and expert consulting services, secured one of the largest RegTech deals of the quarter with a $120m funding round
The investment was led by SoftBank Corp., SoftBank Vision Fund 2, and Liberty Strategic Capital.
The funding underscores strong investor confidence in Cybereason’s capabilities to address increasingly complex cyber threats and solidifies its position as a trusted security partner for enterprises worldwide.
With clients in over 40 countries and a growing strategic partnership with Trustwave, the company is doubling down on its mission to support organisations through every stage of the incident lifecycle.
The capital injection will fuel Cybereason’s global expansion, strengthen its EDR and consulting offerings, and accelerate the adoption of its cutting-edge threat protection platform across highly regulated industries, reinforcing its prominence in the rapidly evolving RegTech space.
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