Key US RegTech investment stats in Q3 2025:
- US RegTech investments surged by 64% YoY in Q3
- Deals over $100m grew by 38% as investors prioritised larger deals
- Quavo Fraud & Disputes, a Delaware-based RegTech specialising in automated fraud and dispute management for financial institutions, secured one of the biggest US RegTech deals of the quarter with a $300m investment
US RegTech investments surged by 64% YoY in Q3
In Q3 2025, the US RegTech sector saw a sharp rebound in both funding and deal activity compared to the same period in 2024.
A total of 89 deals were recorded, marking a 75% increase from the 51 deals completed in Q3 2024 and a 29% rise from the 69 deals seen in Q2 2025.
Total funding also surged to $1.4bn, up 64% from $848.2m in Q3 2024 and a substantial 92% increase from the $726.2m raised in Q2 2025.
This strong growth suggests renewed investor confidence in regulatory technology solutions, particularly as firms seek to strengthen compliance capabilities amid evolving global regulatory frameworks.
The average deal size in Q3 2025 was $15.6m, up slightly from $16.6m in Q3 2024 but higher than the $10.5m recorded in Q2 2025, indicating that the rebound was driven not only by greater deal activity but also by larger funding rounds.
Deals over $100m grew by 38% as investors prioritised larger deals
Funding from deals under $100m reached $842.2m in Q3 2025, representing an 88% increase from the $448.2m recorded in Q3 2024 and a 16% rise from the $726.2m raised in Q2 2025.
Larger deals valued at $100m or more accounted for $550m in Q3 2025, up 38% from the $400m raised in Q3 2024.
The return of high-value rounds indicates a more balanced investment landscape, as capital flows into both emerging and established RegTech firms.
This renewed activity across deal sizes highlights growing investor conviction in the sector’s long-term growth potential, driven by increasing demand for automation, data analytics, and compliance technology across financial services.
Quavo Fraud & Disputes, a Delaware-based RegTech specialising in automated fraud and dispute management for financial institutions, secured one of the biggest US RegTech deals of the quarter with a $300m investment
The investment was from Spectrum Equity.
The company provides cloud-based solutions that enable banks, FinTechs, and credit unions to streamline and automate fraud resolution and chargeback processes.
Its flagship platform, QFD, leverages artificial intelligence and advanced automation to manage intake, investigation, recovery, and client communications, reducing manual workloads by up to 80% and improving recovery rates to as high as 85%.
Serving more than 12.5 million consumer disputes annually and having recovered over $1.4bn for fraud victims, Quavo is redefining how financial institutions handle fraud and dispute workflows while strengthening customer trust.
The new capital will accelerate product innovation, expand AI-led capabilities, and enhance its go-to-market operations to meet growing demand.
With a proven record of 60% annual revenue growth since 2022, Quavo continues to position itself as a leading force in RegTech, enabling financial institutions to achieve greater compliance efficiency, customer satisfaction, and operational resilience.
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