Key US RegTech investment stats in 2025:
- US RegTech investments recovered in 2025 with a 17% YoY increase
- Deals under $100m surged by 61% as investors prioritised smaller deals
- Vanta, a leading RegTech specialising in AI-powered trust management, secured one of the biggest RegTech deals of the year with a $150m Series D funding round at a $4.15bn valuation
US RegTech investments recovered in 2025 with a 17% YoY increase
The US RegTech sector experienced a significant pull-back in both funding and deal activity between 2021 and 2024, though 2025 brought tentative signs of recovery.
2024 closed with 228 deals and total funding of $5bn, a 64% decline in funding and a 58% drop in deal volume from the 537 deals and $14.1bn raised in 2021.
Average deal size followed suit, falling from $26.2m in 2021 to $22m in 2024.
2025, however, offered a more encouraging picture, with 294 deals totalling $5.9bn, a 17% increase in funding and a 29% rise in deal volume year on year.
Average deal size edged up to $20m, suggesting a modest but genuine improvement in investor engagement, even if the sector remains well short of its 2021 peak.
Deals under $100m surged by 61% as investors prioritised smaller deals
The breakdown by deal size adds further nuance to that recovery.
Funding from transactions under $100m stood at $2.1bn in 2024, down 62% from $5.5bn in 2021, before rising 61% to $3.4bn in 2025, pointing to renewed activity at the smaller end of the market.
Larger deals of $100m or more declined 66% from $8.6bn in 2021 to $2.9bn in 2024, and fell a further 15% to $2.5bn in 2025.
The continued weakness in high-value transactions suggests that whilst confidence is returning among smaller investors, the appetite for large-scale commitments in US RegTech remains constrained, with institutional capital yet to return in any meaningful way.
Vanta, a leading RegTech specialising in AI-powered trust management, secured one of the biggest RegTech deals of the year with a $150m Series D funding round at a $4.15bn valuation
The funding round was led by Wellington Management alongside existing backers including Goldman Sachs Alternatives, Sequoia, J.P. Morgan and Atlassian Ventures.
Founded in 2018, Vanta has evolved from helping startups automate SOC 2 compliance to offering a full-stack platform that enables over 12,000 companies across 58 countries to continuously monitor risk, manage compliance, and prove trust in real time.
Its technology integrates zero-touch verification, vendor risk management, access reviews and real-time Trust Centers, moving security from static checks to continuous, automated assurance.
AI innovations such as the Vanta AI Agent and Questionnaire Automation streamline evidence collection, accelerate security reviews, and cut response times by over half, saving teams up to 12 hours per week.
The new funding brings Vanta’s total capital raised to $504m since 2021 and will be used to expand AI-driven solutions in areas such as third-party risk and government compliance, reinforcing its position as a global leader in reshaping the governance, risk, and compliance (GRC) landscape.
Keep up with all the latest RegTech news here
Copyright © 2026 RegTech Analyst
Copyright © 2018 RegTech Analyst
