Key Global RegTech investment stats in 2025:
- Global RegTech funding recovered by 31% YoY in 2025
- Deals under $100m increased by 55% as investors prioritised smaller deals
- 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 funding recovered by 31% YoY in 2025
In 2025, the global RegTech market recorded a notable recovery in both deal volume and funding compared with 2024, although activity remained well below the peak levels seen in 2021.
The year closed with 546 deals, marking a 23% increase from the 443 funding rounds recorded in 2024 but still a 48% decline from the 1,054 deals completed in 2021.
Total funding in 2025 reached $8.5bn, representing a 31% rise from the $6.5bn raised in 2024 but a 59% drop from the $20.9bn recorded in 2021.
The average deal size in 2025 stood at $15.6m, slightly above the $14.7m recorded in 2024 but below the $19.8m average seen in 2021, suggesting that while activity has strengthened year on year, deal sizes have yet to return to earlier cycle highs.
Deals under $100m increased by 55% as investors prioritised smaller deals
Funding from deals under $100m reached $5.4bn in 2025, up 55% from the $3.5bn recorded in 2024 but down 37% from the $8.7bn raised in 2021.
Larger deals valued at $100m or more accounted for $3.1bn in 2025, representing a modest 2% increase from the $3bn recorded in 2024 but a steep 75% decline from the $12.2bn raised in 2021.
This pattern indicates that the recovery in the RegTech sector during 2025 was driven primarily by a resurgence in sub-$100m transactions, while high value deal activity remained relatively stable compared with the previous year but far below the levels seen during the 2021 investment peak.
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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