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RegTech deals surge to record levels in the first quarter of 2017

The number of investments made in Regtech companies more than doubled in the first quarter of 2017, according to research from fintech global.

RegTech companies raised a combined total of $238m across 34 deals, a record number of transactions, in the opening quarter of 2017. Total funds raised by the sector grew 102% Q1-on-Q1 although the total remained below the peak reached in Q3 2016 when $314m was committed to RegTech companies. The largest deal involved Netwrix, an Irvine-based compliance startup, which raised a $51m Series A round from Updata Partners in February of this year.

Investment in compliance-focused companies made a comeback in Q1 2017

An analysis of deals by subsector shows that compliance-focused investments staged a comeback in the first quarter of the year raking in 59% of RegTech investments, outstripping funding to anti-fraud companies which took in the largest share last year. The share of investments taken by companies in the ‘reporting’ subsector saw an uptick in Q1, rising to 12% from only 4% of total RegTech funding in 2016.

London continues to close more RegTech deals than any other city

London maintained its dominance in Q1, closing nine deals, the largest of which was the $12.5m Series B Round raised by Dealflo, a financial agreement automation service.

Unsurprisingly, the increase in investments in RegTech is accompanied by excitement about the subsector’s future prospects. It would be no surprise to most investors if 2017 turns out to be a record year.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies in RegTech and other FinTech sectors are available to subscribers of FinTech Global. ©2017 FinTech Global

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