Key European RegTech investment stats in 2025:
- European RegTech deal activity held steady at 165 transactions in 2025
- UK continued to dominate the European RegTech market as companies in the country secured 27% of all deals from the region
- Feedzai, a Portugal-founded RegTech platform specialising in AI-driven financial crime prevention, transaction monitoring and AML compliance infrastructure, completed one of the biggest European RegTech deals of the year with a $75m Series E funding round
European RegTech deal activity held steady at 165 transactions in 2025
In 2025, the European RegTech market showed a recovery in funding levels while deal activity remained flat year-on-year.
The sector recorded 165 deals, unchanged from 165 deals in 2024, but representing a substantial 60% decrease compared with the 413 deals completed in 2021.
Total funding increased to $1.1bn, marking a strong 51% increase from $724.2m in 2024, although this still represents a 55% decline from the $2.4bn raised in 2021.
While capital deployment rebounded notably during the year, overall activity levels remain significantly below historical highs, reflecting a market still adjusting following the post-2021 correction.
UK continued to dominate the European RegTech market as companies in the country secured 27% of all deals from the region
At the country level, the UK remained the leading European RegTech hub in 2025, with 45 deals (27% share), up slightly from 43 deals (26% share) in 2024.
The Netherlands ranked second with 17 deals (10% share), emerging as a key growth market, while Germany followed closely with 16 deals (10% share), improving from 13 deals (8% share) in 2024.
In contrast, France, which recorded 26 deals (16% share) in 2024, dropped out of the top three in 2025, alongside Spain, which had posted 13 deals (8% share) the previous year.
Despite relatively stable overall deal volumes, activity became more concentrated in Northern European markets during 2025.
Feedzai, a Portugal-founded RegTech platform specialising in AI-driven financial crime prevention, transaction monitoring and AML compliance infrastructure, completed one of the biggest European RegTech deals of the year with a $75m Series E funding round
This pushed its valuation above $2bn and attracting continued backing from Oxy Capital and Buenavista Equity Partners alongside new investors Iberis Capital, Lince Capital and Explorer Investments.
Founded in 2011, Feedzai provides cloud-native risk management software spanning fraud detection, customer identity verification and transaction monitoring, currently safeguarding more than $70bn in annualised global payment volume across card and bill payment networks.
The funding follows its earlier $200m Series D and supports continued platform expansion, including integration of newly acquired data onboarding capabilities and scaling of its real-time financial crime analytics engine.
The company has also strengthened its position within European financial infrastructure through its selection as the primary fraud prevention provider for the European Central Bank’s digital euro programme, under a framework valued at $92m with potential expansion to $280m, reinforcing Feedzai’s role as a core RegTech partner supporting regulatory-grade fraud monitoring across next-generation digital payment ecosystems.
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