The second quarter of 2026 proved to be another powerful period for RegTech investment, with over $2bn raised across the industry.
Funding was down slightly on the first quarter, which saw close to $3bn raised across the first three months of the year.
In the second quarter, the conversation has broadened beyond traditional compliance. Firms are increasingly focusing on how AI is reshaping fraud, identity abuse and financial crime, while geopolitical tensions and cyber threats continued to raise concerns about operational resilience and the stability of the wider financial system.
As a result, investment priorities increasingly centred on platforms that can deliver better data connectivity, faster detection and more adaptive controls in an environment where risks are becoming both more complex and more dynamic.
Some of the biggest deals this quarter came for firms that specialise in areas related to AI security as well as real-time security positioning. This reflects the shifting sands of the industry, and the growing requirements of modern firms.
Here is a month-by-month look back at the first quarter.
April
Across the month of April, $342m was raised across the big deals reported on. The month proved to have a smaller amount of deals, but with said investments bringing in a higher amount of capital.Here are this month’s deals.
AI security lab depthfirst raises $80m Series B round
DepthFirst, an applied AI lab focused on securing software infrastructure, has raised $80m in a Series B funding round.
The round was led by Meritech Capital, with participation from Forerunner Ventures and The House Fund, alongside existing backers including Accel, Box Group, Liquid 2 Ventures, Alt Capital, and Mantis VC.
The latest raise comes fewer than 90 days after the company emerged from stealth mode with a $40m Series A, bringing its total capital raised to $120m.
Cloudsmith lands $72m to govern AI-generated software
Cloudsmith, a cloud-native universal artifact management platform serving some of the world’s largest enterprises, has closed a $72m Series C funding round co-led by TCV and Insight Partners, alongside contributions from other existing investors.
The raise, which comes just one year after Cloudsmith’s Series B, will be directed towards accelerating product development and expanding the company’s go-to-market capabilities. TCV led the previous round and has returned to co-lead alongside Insight Partners for this latest raise, reflecting continued investor conviction in Cloudsmith’s leadership, product and market position.
AI security startup Artemis exits stealth with $70m
Artemis has emerged from stealth mode with $70m in combined seed and Series A funding — just six months after its founding.
The Series A round was led by venture capital firm Felicis, with continued backing from existing investors and notable figures from across the cybersecurity industry. The total raise combines the seed and Series A tranches, though individual round sizes were not disclosed.
The funding comes as AI-driven cyberattacks become increasingly difficult to counter with conventional tools.
Censys bags $70m to expand internet intelligence platform
Censys, the internet intelligence and insights platform, has raised $70m in a combined funding round to accelerate the development of its AI-driven security solutions.
The raise comprises a $40m Series D led by Morgan Stanley Expansion Capital, alongside $30m in debt financing. The round also saw participation from Decibel Partners, Greylock Partners, GV, Intel Capital, and a number of other undisclosed investors.
The company provides internet intelligence capabilities, helping enterprises, governments, and critical infrastructure providers track and respond to threats across their internet exposure.
Linx Security raises $50m Series B to tackle identity risk
Linx Security, an identity security and governance platform, has raised $50m in a Series B funding round led by global software investor Insight Partners, with continued participation from existing backers Cyberstarts and Index Ventures.
The round brings the company’s total funding to $83m, and comes as identity-related failures are emerging as one of enterprise security’s most pressing challenges. The 100-person startup has already secured multimillion-dollar contracts with banks, healthcare companies, and Fortune 500 firms, with its platform governing millions of identities across those organisations.
Founded in 2023 by cybersecurity veterans Israel Duanis and Niv Goldenberg, Linx Security offers an AI-native platform that continuously maps, monitors, and governs all identities across an enterprise — spanning employees, machines, services, and AI agents.
Horizon Technology Finance backs Stellar Cyber with $25m
Horizon Technology Finance Corporation, a Monroe Capital affiliate and specialty lender to venture-backed technology businesses, has extended a delayed draw senior credit facility of up to $25m to Stellar Cyber, an AI-native cybersecurity platform provider, to fund its continued expansion.
The facility will be used to accelerate development of Stellar Cyber’s AI-driven platform, broaden its go-to-market activities, and strengthen the open, unified security operations capabilities it delivers to managed security service providers (MSSPs) and enterprise security teams.
Stellar Cyber’s platform is purpose-built to serve MSSPs and enterprise security teams, bringing together security information and event management (SIEM), network detection and response, identity threat detection, and multi-layer AI into a single environment.
May
May was overall the quietest month of the three in Q2, with only $295m raised across the deals reported on. The biggest deal was focused on real-time security, a real pressure point for financial firms today.
Here are May’s biggest raises.
Exaforce’s $125m Series B bets on real-time security reasoning
Exaforce, a CyberTech firm pioneering agentic security operations, has secured $125m in a Series B funding round — one of the largest raises in the emerging AI security operations centre (SOC) market to date.
The round drew participation from HarbourVest, Peak XV, Mayfield, Khosla Ventures, Seligman Ventures, and AICONIC. The fresh capital arrives just 12 months after the company’s $75m Series A, pushing its cumulative funding to $200m. Exaforce intends to deploy the proceeds to scale its AI-native security platform, strengthen its real-time reasoning capabilities, and grow its international presence.
Open source security gap drives Socket’s $60m raise
Socket, a software supply chain security platform founded in 2020, has closed a $60m Series C funding round at a $1bn valuation, as enterprises race to secure the surge of open source code now entering production through AI-accelerated development.
The round was led by Thrive Capital, with participation from a16z, Abstract Ventures, and Capital One Ventures. The capital will support Socket’s next phase of growth as demand rises among organisations seeking to govern third-party code without disrupting engineering output.
The raise reflects growing urgency around software supply chain risk. The OWASP Top 10:2025 community survey ranked supply chain failures as the leading concern among security professionals, while a 2025 Linux Foundation report found that fewer than four in ten organisations assess the direct dependencies of open source components before incorporating them into their systems.
Frame Security raises $50m to tackle human cyber risk
Frame Security, a human risk security company using AI to defend organisations against social engineering and deepfake attacks, has made its public debut alongside a $50m funding round.
The raise was led by Index Ventures, Team8, and Picture Capital, with notable participation from Wiz CEO Assaf Rappaport and prominent technology investor Elad Gil. Gil initially backed the company as an angel investor before subsequently doubling down through his vehicle, Gil Capital.
The funding reflects growing concern about the vulnerability of employees to increasingly sophisticated cyber threats.
XBOW secures $35m as customers turn investors
XBOW has raised $35m in an extension to its Series C round, with the fresh capital coming from a group of strategic investors that includes several of the firm’s own customers and ecosystem partners.
The extension was backed by Accenture Ventures, DNX Ventures, Liberty Global Tech Ventures, NVentures (NVIDIA’s venture capital arm), Samsung Ventures and SentinelOne S Ventures.
The raise builds on XBOW’s previously announced $120m Series C and signals a notable trend: large enterprises are not merely deploying the platform, but committing capital to it as they look to defend against increasingly sophisticated, AI-driven threats.
Sardine lands $25m
Sardine, an agentic risk platform focused on combating financial crime, has secured a $25m Series C extension led by National Bank of Canada, bringing its total funding raised to $170m.
The investment follows a live platform evaluation in which Sardine demonstrated improved fraud detection and a reduction in false positives, with the bank citing these results as the basis for its decision to deepen the commercial relationship. As part of the multi-year partnership agreement, National Bank of Canada will roll out Sardine’s device intelligence and real-time risk scoring capabilities across its retail, commercial, and wealth operations.
June
The final month of Q2 was a highly powerful month for raises, with $1.3bn brought in across all the biggest deals. The biggest deal of the month saw an eye-watering $600m raised in the area of AI security, reflecting a fierce demand in this area.
Have a look at June’s deals below.
$600m raise propels Cyera to AI security leadership
Cyera, an AI-native data security company building what it describes as an enterprise trust layer for the agentic era, has secured $600m in its latest funding round, pushing its valuation to $12bn, a fourfold increase over the past 18 months.
The round was led by Evolution Equity Partners, with Cyberstarts and Temasek joining alongside all existing backers, including Accel, AT&T Ventures, Blackstone, Coatue, and Spark Capital, among others. The raise takes Cyera’s total funding beyond $2bn and cements its position among the most highly valued privately held security companies globally.
The capital injection arrives against a backdrop that Cyera says is forcing enterprises to confront a structural problem: as of 2026, 68% of organisations are unable to distinguish between human and AI agent activity within their own systems.
Summit Partners backs Quantifind in $200m growth round
Quantifind, an AI-native risk intelligence provider serving financial institutions and government agencies, has secured $200m in a growth investment led by Summit Partners.
The round drew participation from existing investors Citi Ventures, S&P Global, Deloitte and Stephens Group. Summit Partners managing director Chris Dean has joined Quantifind’s board of directors as part of the deal.
The capital will be used to accelerate the company’s international expansion across Europe, Asia-Pacific and the Americas, with efforts focused on strengthening regional partnerships, advancing regulatory alignment and extending localised risk intelligence capabilities to help multinational financial institutions and government agencies counter increasingly sophisticated financial crime.
Coralogix raises $200m in Series F funding
Coralogix, a data and AI platform specialising in observability, has closed a $200m Series F funding round, bringing the company’s total capital raised to $550m.
The round was co-led by Advent, CPPIB, and Greenfield, with additional participation from Brighton Park Capital.
The investment arrives as conventional observability tools face growing pressure from AI-driven workloads. Modern AI-powered applications produce telemetry data at volumes, speeds and complexity levels that legacy monitoring platforms were never designed to accommodate.
Behavox raises $175m
Behavox, an AI-native controls platform serving global banks, asset managers, hedge funds, and commodity firms, has raised $175m in preferred equity from HPS Investment Partners, a global credit investment firm operating as part of BlackRock.
The funding will be used to accelerate Behavox’s international expansion, broaden its Unified Controls Platform, and pursue disciplined mergers and acquisitions. HPS joins an existing roster of institutional backers that includes SoftBank, Citigroup, Index Ventures, and Hoxton Ventures.
Alongside the investment, Behavox fully repaid and retired a $70m venture-debt facility with Hercules Capital, which had been secured in autumn 2024 to support strategic expansion.
Ent’s $100m seed signals a shift in cybersecurity thinking
Ent, an intent-aware workspace security company, has emerged from stealth with $100m in seed financing, aiming to shift the cybersecurity industry’s focus from reaction to prevention in an era of AI-accelerated attacks.
The round was led by Decibel, with participation from Sequoia, Crosspoint Capital Partners, Craft Ventures, Shield Capital, Felicis, and In-Q-Tel (IQT).
Ent’s platform is designed to identify and intervene in risky behaviour by both humans and AI agents before those actions escalate into security incidents. The company says it is already live with Global 2000 customers across the hospitality, financial services, and defence sectors.
$66m bet on fixing enterprise identity for the AI era
NewCore, a security-first identity platform built to govern humans, machines, and AI agents within the enterprise, has emerged from stealth with $66m in funding, marking one of the most significant early-stage bets on identity security for the agentic era.
The seed round was backed by Cyberstarts, Index Ventures, and Evolution Equity Partners. The company was founded by a team of cybersecurity and enterprise IT veterans whose prior track record includes the acquisition of Dome9 by Check Point.
NewCore argues that identity has become the primary attack surface across enterprise environments.
Straiker raises $64m to lock down the AI agent era
Straiker, an agentic security firm purpose-built to protect AI agents operating inside enterprise environments, has closed a $64m Series A funding round, lifting its total capital raised to $85m.
The round was co-led by Marathon Management Partners, Citi Ventures, Illuminate Financial and Workday Ventures, with Bain Capital Ventures and Lightspeed both continuing their backing. Gokul Rajaram, founding partner at Marathon, will join the company’s board of directors as part of the deal.
The funding arrives as demand for AI agent security accelerates sharply. Straiker has expanded its run-rate revenue more than 15-fold in under a year, driven by enterprise customers deploying both in-house and third-party agents across sensitive systems. The company counts frontier AI labs and Fortune 500 firms among its clients.
Gray Swan raises $40m to secure AI at the frontier
Gray Swan, an AI security company founded out of Carnegie Mellon University’s AI safety research programme, has raised $40m in a Series A funding round as it moves to bring frontier-grade security to enterprise AI deployments.
The round was co-led by Wing Venture Capital and Madrona, with additional backing from Obvious Ventures, Snowflake Ventures, Hudson River Trading, Samsung Next, and existing investor Magarac Venture Partners. The capital will be used to accelerate Gray Swan’s go-to-market operations, deepen its relationships with leading AI labs, and grow the team supporting organisations seeking to deploy AI rapidly without undermining security.
AI compliance startup Compuvi secures $40m seed round
Compuvi, the LegalTech and RegTech artificial intelligence company behind compliance platform Confinaid, has closed a seed funding round at a $40m post-money valuation.
The round is backed by Turkish investor Islam Yildiz and Istanbul-based Ozay Law Firm, led by founding partner Merter Ozay. Ozay Law Firm takes a dual role in the deal, participating as both a financial backer and Compuvi’s strategic legal partner in the region. Further institutional and strategic investors are expected to be named in the months ahead.
Andera raises $37m to automate internal audit
Andera, an AI-native platform built to automate the internal audit function, has secured $37m in a Series A funding round led by Lightspeed Venture Partners.
The investment marks Lightspeed’s conviction that the audit sector has reached a pivotal moment for AI-driven transformation. The venture firm spent several months building its thesis before committing capital, consulting with finance and audit leaders across Fortune 500 companies spanning technology, financial services, healthcare, and consumer sectors, alongside Big Four partners and former Public Company Accounting Oversight Board (PCAOB) officials.
Lightspeed concluded that a genuine opportunity had opened for a new entrant, driven by two converging forces: the arrival of large language model reasoning capable of handling complex audit workflows, and mounting pressure from CFOs demanding efficiency gains of 200-300% from back-office functions.
A Security’s $37m bet on stopping weaponised AI threats
A Security, an autonomous offensive security platform designed to identify and close real-world attack paths before adversaries can exploit them, has emerged from stealth mode after raising $37m in funding from Lightspeed Venture Partners, Cyberstarts, and a group of prominent angel investors.
The round attracted backing from high-profile names including Wiz CEO Assaf Rapaport, Cyera CEO Yotam Segev, and Cerca Partners. A Security intends to deploy the capital to accelerate growth and expand its platform’s capabilities, as demand for autonomous security tools continues to mount across enterprise markets.
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