Key US RegTech investment stats in H1 2025:
- US RegTech investments dropped by 26% YoY in H1 2025
- Deals over $100m halved in the first half as investors risk appetite reduced
- SpecterOps, a RegTech and cybersecurity company specialising in identity risk reduction and adversary-focused security solutions, secured one of the biggest US RegTech deals in H1 with a $75m Series B funding round
US RegTech investments dropped by 26% YoY in H1 2025
In H1 2025, the US RegTech sector recorded 69 deals, representing a 50% decline from the 137 deals completed in H1 2024 and a 24% drop compared to the 91 deals seen in H2 2024.
Total funding reached $2.3bn, down 26% from the $3.1bn raised in H1 2024 but 19% higher than the $1.9bn secured in H2 2024.
While activity remains below 2024 levels, the rebound in funding compared to late 2024 highlights a renewed flow of capital into the market, though with greater selectivity.
The average deal size in H1 2025 stood at $18.6m, down from $22.5m in H1 2024 but lower than the $21.2m recorded in H2 2024.
This reduction reflects a market environment where investors are distributing capital more broadly, favouring a wider pool of emerging RegTech players instead of concentrating on fewer large-scale deals.
Deals over $100m halved in the first half as investors risk appetite reduced
Funding from deals under $100m accounted for $1.4bn in H1 2025, up 7% from $1.3bn in H1 2024 and a 68% increase from the $814m recorded in H2 2024.
In contrast, deals valued at $100m or more reached $920m in H1 2025, down 49% from the $1.8bn raised in H1 2024 and 17% lower than the $1.1bn recorded in H2 2024.
This shift indicates a cooling appetite for mega-deals, while smaller transactions have become increasingly critical in sustaining overall market activity.
SpecterOps, a RegTech and cybersecurity company specialising in identity risk reduction and adversary-focused security solutions, secured one of the biggest US 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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