Key European RegTech investment stats in 2024:
- European RegTech deal activity halved in 2024 YoY
- UK firms dominated the European RegTech marketplace completing a quarter of all deals from the region
- Napier AI, a London-based RegTech specialising in AI-powered financial crime and compliance solutions, secured $56.9m funding from Crestline Investors, making it one of the largest European RegTech deals of the year
European RegTech deal activity halved in 2024 YoY
The European RegTech market faced a noteworthy downturn in 2024, with both funding and deal activity declining sharply compared to previous years.
Total funding dropped to $724m, marking a steep 53% decrease from the $1.54bn raised in 2023 and a 34% decline from the $1.09bn recorded in 2020.
Deal activity followed a similar pattern, with only 111 deals completed in 2024, reflecting a 50% drop from the 220 deals recorded in 2023 and a 54% decline from the 241 deals in 2020.
This decline underscores ongoing investor caution in the RegTech sector, with market uncertainty and reduced appetite for regulatory technology investments contributing to the contraction.
UK firms dominated the European RegTech marketplace completing a quarter of all deals from the region
The United Kingdom remained the most active market for European RegTech, with 43 deals (26% share) in 2024, though this marked a 54% decline from the 93 deals recorded in 2023.
France followed with 26 deals (16% share), showing a smaller 21% decrease from the 33 deals in the previous year.
Germany recorded 13 deals (8% share), down 59% from the 32 deals in 2023, and Spain emerged as a new contender, also completing 13 deals (8% share).
Despite the overall decline in deal activity, the presence of Spain in the top markets signals a shifting landscape in European RegTech investment, with new players gaining traction even as broader funding levels contract.
Napier AI, a London-based RegTech specialising in AI-powered financial crime and compliance solutions, secured $56.9m funding from Crestline Investors, making it one of the largest European RegTech deals of the year
Known for its advanced anti-money laundering (AML) and know-your-customer (KYC) software, Napier AI’s platform, Napier Continuum, is trusted by over 150 institutions globally, transforming regulatory compliance into a strategic advantage.
This new funding will accelerate Napier AI’s growth, allowing the company to expand its innovative solutions in the financial sector and further its mission of driving down financial crime through cutting-edge technology.
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