Regulatory Technology Report Highlights – Q2 2019

Here is our Q2 2019 summary report on the regulatory technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Regulatory Technology Investor Activity Showing Overall Growth

How has investor appetite in regulatory technology evolved throughout the years? In this blog post we examine the total investments by year into this sector to help answer that question. The graph below shows the total number of investors in all deals stacked by quarters.

Regulatory Technology Investors Over Time
Regulatory Technology Investors Over Time

As the graphic demonstrates, investor activity in regtech has been on a generally upward trend in recent years. The 5-Year CAGR of regtech investor activity from 2013 to 2018 is 19%. In addition, the sector has seen a total of 247 investors in all deals through Q2 of this year. This represents 75% of the total investor activity in 2018, and 176% of the investor activity through Q2 in 2018. Taking all these data points together, we can see that investor appetite for regtech deals has been steadily increasing in recent years, despite the slight drop in 2018.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Regulatory Technology Average Funding Is On An Upward Trend

For this quarter’s funding analysis, let’s examine how average funding in the regulatory technology (regtech) sector is evolving. The graphic below shows the regtech average funding across all deals over time by quarter.

Regulatory Technology Average Funding Deal Size
Regulatory Technology Average Funding Deal Size

As the graphic demonstrates, regulatory technology average funding deal size in Q1 2019 was at $29M, which increased by 113% from the $14M in the same quarter last year. The average funding deal size has experienced strong growth, with the average funding last quarter around 6 times larger than it was 5 years ago. The top three funding events in Q1 2019 include a $261M round into Rubrik, a $160M round into Kyriba Corporation, and a $100M round into OneLogin.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Regulatory Technology Sector Overview – Q1 2019

This blog post examines the different components of the regulatory technology (regtech) ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.

Financial Crime Compliance Is The Largest Regulatory Technology Category

Let’s start off by looking at the Sector Map. We have classified 569 regtech startups into 10 categories. They have raised $12B from 987 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Regulatory Technology Logo Map
Regulatory Technology Logo Map

We see that Financial Crime Compliance is the largest category with 118 companies. Financial Crime Compliance companies help financial institutions comply with regulations on identity related crimes. Their functions include client on-boarding, payment fraud, account takeover, and identity verification. Some example companies in this category are NetGuardians, Finomial, DueDil, and Feedzai.

Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.

The Pioneers Quadrant Has the Most Regulatory Technology Categories

Our Innovation Quadrant divides the regtech categories into four different quadrants.

Regulatory Technology Innovation Quadrant
Regulatory Technology Innovation Quadrant

We see that the Pioneers quadrant has the most number of regulatory technology categories at 5, accounting for 50% of all regulatory technology categories. The Quality Compliance category has the highest average age, and the Network Compliance category has the highest average funding. On the other hand, the Compliance Tracking category is low on both average funding and age.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Identity Compliance Leads Regulatory Technology In Number of Investors

The regulatory technology (regtech) industry has seen 960 investors and $11B total all time funding. Let’s analyze which regtech categories have the most number of investors actively financing the startups. The graphic below highlights regtech categories based on the number of investors in each category.

Regulatory Technology Investors Per Category
Regulatory Technology Investors Per Category

As the graphic demonstrates, Identity Compliance has the highest number of investors at 275, with Data Compliance following close behind at 268. Identity Compliance companies help financial institutions comply with regulations on identity related crimes. Data Compliance companies help businesses comply with regulations around the integrity and security of their data. In addition, the average number of investors across all regtech categories is 121.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Regulatory Technology Report Highlights  – Q1 2019

Here is our Q1 2019 summary report on the regulatory technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Regulatory Technology Funding Peaked in 2018

As we progress through Q1 of 2019, let’s look back on 2018 and analyze how funding in the regulatory technology (regtech) sector compares to previous years. The graphic below shows the total annual regtech funding amounts over time.

Regtech Funding Over Time
Regtech Funding Over Time

As the graphic demonstrates, 2018 was a record year for regtech funding at over $2B. It represents a 6% increase from the previous year’s funding. In addition, regtech funding grew at a CAGR of 42% over the past 5 years. Some of the largest funding events in 2018 include a $250M round for Cohesity, a $169M round for Netskope, and a $100M round for Assent Compliance.

To learn more about our complete regulatory technology dynamic report, visit us at www.venturescanner.com or contact us at info@venturescanner.com.