Key Global RegTech investment stats in H1 2025:
- Global RegTech deal activity rose by 20% in H1 2025
- US companies secured half of all deals to dominate the RegTech market in the first half of the year
- SpecterOps, a RegTech and cybersecurity company specialising in identity risk reduction and adversary-focused security solutions, secured one of the largest global RegTech deals in H1 with a $75m Series B funding round
Global RegTech deal activity rose by 20% in H1 2025
In H1 2025, the Global RegTech market showed signs of recovery following a subdued second half of 2024.
The sector recorded 338 funding rounds, up 20% from the 282 deals in H2 2024, although this still reflects a 7% decline from the 364 deals completed in H1 2024.
Total funding reached $3.7bn in H1 2025, representing a 43% increase from the $2.6bn raised in H2 2024, but a slight 7% decrease compared to the $4bn secured during the same period last year.
This mixed performance highlights a cautiously improving funding environment, with momentum building once again despite not yet reaching the highs seen in early 2024.
US companies secured half of all deals to dominate the RegTech market in the first half of the year
The US remained the most dominant player in the Global RegTech landscape, accounting for 169 deals (50% share) in H1 2025, down 5% from the 177 deals (49% share) in H1 2024.
The UK followed with 23 deals (7% share), a 10% increase from 21 deals (6% share) in the same period last year.
Israel emerged as the third most active market with 14 deals (4% share), overtaking China, which had recorded 16 deals (4% share) in H1 2024.
The data suggests a modest consolidation of deal activity among leading countries, with the US maintaining its global lead while smaller markets like Israel gained relative ground.
SpecterOps, a RegTech and cybersecurity company specialising in identity risk reduction and adversary-focused security solutions, secured one of the largest global RegTech deals in H1 with a $75m Series B funding round
The round was led by Insight Partners, alongside participation from M12, Cisco Investments and others.
The funding will accelerate the growth of its flagship platform, BloodHound Enterprise (BHE), the industry’s first solution focused on comprehensive removal of Identity-based Attack Paths in Microsoft Active Directory and Entra ID environments.
SpecterOps addresses a critical blind spot in enterprise security architecture by treating identity infrastructure as a dynamic, interconnected graph, enabling real-time detection, prioritisation and remediation of attack vectors.
With over 1.5m downloads of its open-source BloodHound tool and more than 200 enterprise customers already onboarded to BHE, the company has established itself as a trusted leader in the identity-centric security domain.
Its contributions to the cybersecurity community—spanning over 400 research outputs, 90 open-source tools and training of more than 7,000 professionals—underscore its pivotal role in shaping modern identity threat management.
This latest investment will allow SpecterOps to expand research, consulting and go-to-market capabilities, reinforcing its position as a frontrunner in proactive identity threat detection and regulatory resilience.
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