US RegTech investment dropped 28% YoY in Q2 due to fall in deals under $100m

US RegTech funding Q2 2026

Key US RegTech investment stats in Q2 2026:

  • US RegTech funding dropped 28% YoY
  • Deals under $100m fell by 82% in Q2 as investors grew cautious
  • Haast, an AI-powered enterprise compliance engine that automates regulatory and policy review within enterprise workflows, raised $12m in a Series A round, marking one of the biggest US RegTech deals of the second quarter

US RegTech funding dropped 28% YoY

US RegTech companies raised $521.5m across 52 deals in Q2 2026, down 53% in funding and 30% in deal volume compared to Q1 2026, which had recorded $1.1bn across 74 deals.

Against the same quarter a year earlier, funding was down 28% from the $726.2m raised across 69 deals in Q2 2025, with deal volume also 25% lower.

Average deal size was $10.5m in Q2 2025, rising to $15.1m in Q1 2026 before pulling back to $10m in Q2 2026, broadly in line with where the market started the period and suggestive of a return to more typical deal sizing after a stronger Q1.

Deals under $100m fell by 82% in Q2 as investors grew cautious

The breakdown by deal size highlights a notable shift in the composition of funding.

Transactions under $100m totalled $131.5m in Q2 2026, down 83% from the $754.2m recorded in Q1 2026 and down 82% from the $726.2m in Q2 2025, a quarter in which all funding was derived from smaller deals.

Larger transactions of $100m or more came in at $390.0m in Q2 2026, up 7% from the $365m recorded in Q1 2026.

With no comparable figure for Q2 2025, the year-on-year comparison is not available for this category.

The contrast between the two deal size categories this quarter is stark, with high-value transactions now accounting for the majority of total funding despite smaller deals dominating activity just a year earlier.

Haast, an AI-powered enterprise compliance engine that automates regulatory and policy review within enterprise workflows, raised $12m in a Series A round, marking one of the biggest US RegTech deals of the second quarter

The round was led by Peak XV Partners, with participation from DST Global Partners, Airtree, Aura Ventures and Black Sheep Capital, bringing total capital raised to $17.1m.

The company addresses a growing operational bottleneck facing legal and compliance teams, where corporate content volumes have grown 8x to 10x as AI adoption accelerates, with compliance and legal functions estimated to spend 70% of their time on manual, repetitive tasks.

Haast embeds organisational policy, risk appetite and approval logic directly into day-to-day enterprise tools, enabling teams to automate high-volume compliance work at speed without compromising governance standards.

The company reports 4.5x revenue growth in 12 months and zero customer churn, with significant traction among Fortune 500 clients. Proceeds will be used to scale its agentic workflows, accelerate product development and expand its global enterprise footprint.

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