A total of $5bn was raised by RegTech companies in 2025, according to a new report assessing the current market state.
RegTech Analyst and Parker & Lawrence Research recently collaborated on a new industry report, ‘The Global State of RegTech 2026’, offering a comprehensive assessment of the global RegTech market to date.
The report offers a deep dive into the sector, including an adoption ranking for sectors, barriers to adoption, market challenges and the factors financial institutions consider important when looking for a new partner.
As part of its research, it assessed the scale of funding into RegTech solutions. The report notes that there are now over 4,000 products from over 1,300 vendors.
While the global RegTech sector reached $5bn raised in 2025, the lion share of this came from companies based in the US. RegTechs based in the country raised a combined total of $3.17bn.
The second largest market was Israel, which saw its RegTechs raise a total of $566m. IT was then followed by the UK with $412m, Australia with $280m, Italy with $200m, France with $145m and Portugal with $80m.
In terms of deal sizes, the majority of funding rounds were completed by companies in their early stages, with a total of 145 deals. Companies in this size raised a combined total of $1.85bn. Mid-sized venture deals were the second most common, with a total of 34 deals completed, however, they raised slightly more with a combined investment value of $1.9bn. Private equity deals were the fewest, with just 17 deals and $1.1bn invested.
The report notes that while the RegTech sector has experienced consolidation over recent years, the vendor landscape is fragmenting again. However, the new market entrants with their AI-first focus look very different to the established players at the other end.
The report also notes that while platforms are still vital in the market, there is a rising importance for lower-cost solutions.
The report also explores the investors and who the major players in 2025 were, both in terms of value of deals and volume. General Catalyst invested the most into the RegTech sector, deploying a total of $751m across four deals. It’s primary market of focus was North America.
Evolution Equity Partners was the second largest investor, with a total of $595m through three deals. Other big investors were Goldman Sachs Growth Equity ($585m), Brookfield Growth (435m), CapitalG ($435m) and Sequoia Capital ($345m).
In terms of volume of deals, Y Combinate completed the most investments with a total of eight. It invested a total of $265m into the sector during 2025. Ballistic Ventures was close behind with seven deals but deployed slightly more capital at $295m.
Other frequent RegTech investors in 2025 were Lightspeed Venture Partners (seven), Andreessen Horowitz (six), Insight (six), Insight Partners (five) and General Catalyst (four).
For more insights into RegTech funding, and the Global RegTech market, read the full report here.
Read the daily FinTech news
Copyright © 2026 FinTech Global
Copyright © 2018 RegTech Analyst
