Key European RegTech investment stats in Q1 2025:
- European RegTech deal activity dropped by 20% YoY in Q1 2025
- UK companies continued to dominate European RegTech deal activity with 21% share of all transactions
- Wultra, a Czech cybersecurity startup specialising in post-quantum authentication for financial institutions, secured one of the biggest European RegTech deals of the quarter with a $3m funding round
European RegTech deal activity dropped by 20% YoY in Q1 2025
In Q1 2025, the European RegTech market continued its downward trend, with both funding and deal volume experiencing notable declines compared to the previous year.
Total funding dropped to $133m, representing a 51% decrease from the $281m raised in Q1 2024 and a 22% decline from the $170m recorded in Q4 2024.
While the number of deals showed a slight 2% increase from 42 in Q4 2024 to 43 in Q1 2025, it remained 20% lower than the 54 deals completed in Q1 2024.
These figures reflect a challenging funding climate in the European RegTech sector, with investor activity still subdued despite a small uptick in deal count QoQ.
UK companies continued to dominate European RegTech deal activity with 21% share of all transactions
The United Kingdom maintained its lead as the most active European RegTech market in Q1 2025, completing nine deals (21% share), though this represented a 47% drop from the 17 deals seen in Q1 2024.
Germany followed with five deals (12% share), a 29% decline from seven deals a year earlier.
The Netherlands emerged as the third most active market with four deals (9% share), replacing France, which had ranked third in Q1 2024 with three deals.
Despite the overall decrease in absolute deal numbers, the UK and Germany retained their dominant positions, with their share of total activity holding steady or improving slightly in a market marked by continued caution.
Wultra, a Czech cybersecurity startup specialising in post-quantum authentication for financial institutions, secured one of the biggest European RegTech deals of the quarter with a $3m funding round
The funding round was led by Tensor Ventures, Elevator Ventures, and J&T Ventures.
As quantum computing poses a growing threat to conventional cryptographic methods, Wultra is at the forefront of building authentication systems capable of withstanding quantum-level attacks.
Its flagship solutions, including a widely adopted smartphone authenticator and a hardware-based device called Talisman—already shipping in the thousands—are trusted by major financial players like Raiffeisen Bank International and Global Payments.
Designed for rapid deployment, Wultra’s developer-friendly tools utilise NIST-endorsed, quantum-resistant cryptography and comply with evolving global standards such as PSD3/PSR1 and eIDAS 2.0.
With plans to expand into Western Europe and Southeast Asia, including a new Singapore office in 2025, the funding will support Wultra’s continued innovation and growth as a critical provider of secure, scalable RegTech infrastructure.
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