From: RegTech Analyst
In the midst of the Covid-19 crisis, these 32 RegTech companies have successfully secured funding over the last month.
While many segments of the FinTech industry have struggled because of the pandemic raging across the world, the RegTech industry has seemingly beaten the doomsayers.
Looking at the first half of 2020, the RegTech sector managed to increase the funding raised by 5%, compared to the same period in 2019. In total, the industry bagged $3.9bn in the first six months of the year, according to FinTech Global’s research.
That comes after several years of impressive growth of the sector. Back in 2015, RegTechs around the globe enjoyed a total of $1.1bn being injected into it. By 2019, that figure had skyrocketed to $8.5bn.
And with 32 rounds having closed in July and with some real whoopers among them, there’s reason to be hesitantly optimistic about the future.
That being said, it nevertheless, it should be noted that many of these rounds have been in the works for some time even though they were announced last month.
A smattering of cybersecurity companies were among the rounds raised in July. This adds to the choir of voices suggesting that the coronavirus has been good for the sector as it has forced businesses to up their digital defences to counter the rise of cyber crime and the demand for remote working.
Againg though, there are voices of caution. While there has been a rise, a recent study from Canalys suggested that the boom won’t last as companies around the world are tightening up their purse strings in order to weather the pandemic.
A final point before you can take a closer look at the rounds from last month is one of quantum computing. One of the rounds raised was from PQShield, the quantum cryptography startup.
Quantum computers have been hailed as the next big thing in tech. It will considerably speed up the processing time for computers. However, a consequense of this is that many encryption tools used to day could soon be obsolete as these computers will be able to cut through the coding in no time.
Given this growing risk, it shouldn’t be surprising that recent research from MarketsandMarkets estimated that the quantum cryptography market could be worth $214m by 2025, having growned at a compound annual growth rate of 19.1% since 2020 when it was valued at $89m.
With that out of the way, let’s check out the rounds shall we?
BlueVoyant said to raise $68m in its Series C round
Cybersecurity company BlueVoyant has raised $68m in its new funding round. The Singaporean investor Temasek, which has previously the supported digital defence ventures Eigen Technologies and Claroty, led BlueVoyant’s Series C round.
BlueVoyant said it would use the money to speed up its growth plans as well as looking to improve its managed security services, third-party cyber risk services and cyber defence services.
The cybersecurity company has offices in New York, Maryland, San Francisco, London, Madrid, Tel Aviv, the Philippines and has recently opened new offices in Central America.
The Series C round came just about a year after BlueVoyant raised its $82.5m Series B in 2019. The new raise brings the total funding injected into the company to $275m.
RegTech platform Quantexa scored $64.7m in its Series C round
UK-based contextual intelligence software company Quantexa bagged $64.7m in its Series C round.The round, which was led by Evolution Equity Partner, will help the scaleup to reach new markets in Eurppe, North America and Asia.
Previous Quantexa backers Dawn Capital, Accenture Ventures, AlbionVC and HSBC also participated in the raise. British Patient Capital and ABN AMRO Ventures also joined the round, making their first investment into Quantexa.
ComplyAdvantage closes $50m Series C to fuel expansion drive
ComplyAdvantage secured a $50m Series C round in July. The financial crime fighting RegTech’s latest investment brought the total funding injected into the startup to $88m.
ComplyAdvantage will use the new funds to expedite the development of its product and expand across the United States, Europe, and the Asia-Pacific region.
ComplyAdvantage uses machine learning and natural language processing to help regulated organizations manage their risk obligations and prevent financial crime. It counts several big banks, FinTechs and organisations among its clients.
Automated data discovery platform Explorium secures $31m Series B
Explorium, a data science solution powered by automated data discovery, has closed its Series B on $31m. The investment was led by previous Explorium backer Zeev Ventures. Additional contributions came from 01 Advisors, Dynamic Loop, Emerge and F2 Capital.
Explorium enables companies to create better predictive models by connecting internal datasets with external data sources, including companies, geospatial, behavioural, time-based, website data, and more. With this, it can automatically uncover hidden connections and generate custom signals to make predictions more accurate.
Cybersecurity company CyCognito closes its Series B on $30m
CyCognito, a cybersecurity solution that can uncover and prioritise risk from attacker-exposed systems, has closed its Series B round on $30m. The round was led by Accel, with commitments also coming from Lightspeed Venture Partners, Sorenson Ventures and UpWest.
With the new equity, the company said it would enhance its platform to “take advantage of its lead and unique position in identifying the externally-exposed systems”.
Managed detection and response platform GoSecure closes Series E
GoSecure, a managed detection and response platform, bagged $20m in its Series E round in July. Having topped up its coffers, it said it would use the dough to keep growing in North America.
The capital was supplied by Yaletown Partners, Bank of Montreal and previous backers SAP/NS2 and Razor’s Edge.
In case you’re unfamiliar with GoSecure, then you may know the company better as its original name: CounterTack.
Traceable nets $20m in its Series A to help it launch out of stealth
End-to-end application security monitoring solution Traceable has secured $20m in its Series A round. At the same time, the startup announced that it would be launching from stealth. Unusual Ventures and BIG Labs led the round.
Cybersecurity platform Cynet secures its Series B+ on $18m
Cynet, an autonomous breach protection platform, closed its Series B+ round on $18m in July. BlueRed Partners led the investment, with contributions also coming from Deutsche Telekom, Merlin International, Norwest Venture Partners and Ibex Investors. As part of the investment Merlin International and Deutsche Telekom will also go to market with Cynet.
This equity infusion has been earmarked to developer the next generation of its breach prevention platform, as well as expand its presence in the US and around the world.
Cloud security company Ermetic raises $17.25m in its Series A round
Ermetic has raised $17.25m in its Series A round. The cloud access risk security startup said would use the money to increase its research and development, go-to-market, sales, marketing and customer support initiatives.
The equity injection was supported by Glilot Capital Partners, Norwest Venture Partners and Target Global.
Breach and attack simulator XM Cyber secures $17m in its Series B round
XM Cyber, a breach and attack simulation (SA) platform, has closed its Series B round on $17m, as it looks to grow its global sales and marketing efforts.
The capital was supplied by Macquarie Capital, Nasdaq Ventures, Our Innovation Fund, and Swarth Group. With the close of the round, the company has secured a total of $49m in equity.
Capital from the round will be used to support the research and development of the platform, as well as helping XM Cyber to increase it global sales and marketing. The cybersecurity company will also looking to expand the breadth of its capabilities to meet demands.
Fraud detection startup Ravelin bags £16.4m in Series C round
Ravelin, the London-based fraud detection startup, has secured £16.4m to fund its expansion into new markets and reach more industries.
Draper Esprit led the Series C round. Amadeus Capital Partners, BlackFin Tech and Passion Capital also participated in the raise.
Cybersecurity training platform RangeForce scores $16m in its Series A funding round
RangeForce, a cloud-based cybersecurity training service, has scored $16m in its Series A round which will help it focus on global growth. Energy Impact Partners served as the lead investor, with contributions also coming from Trind and Cisco Investments.
With the fresh capital, the RegTech is planning to increase its go-to-market efforts, advance product development, expand its training orchestration partners and boost global growth.
Veriff closes $15.5m funding round as it prepares for a larger Series B round
Veriff closed its new funding round on $15.5m as it prepares to increase its growth and sales to enterprise customers before it raises a larger Series B round in the future.
The capital was supplied by previous backers Y Combinator and Mosaic Ventures, as well as first time investors NordicNinja VC and Change Ventures.
CloudSphere secures $15m to support the new venture
Cloud management and governance platform HyperGrid and agentless discovery and application mapping company iQuate have joined together to create CloudSphere.
The new company will offer enterprise and cloud service provider customers with governance for migration planning, security posture, identity, compliance and cost management across multiple public clouds.
To support the creation of the new platform, the company has received $15m from an investment round led by Atlantic Bridge Capital. As part of the deal, Atlantic Bridge Capital managing partner Kevin Dillion has become the executive board chair at CloudSphere.
CalypsoAI bags $13m in its Series A round led by Paladin Capital
CalypsoAI, a validation, security and monitoring software solution for AI technology, has bagged $13m in its Series A funding round.
Lead investor for the round was Paladin Capital Group, with additional contributions coming from Martin Ventures, 8VC, Frontline Ventures, Lightspeed Venture Partners, Manta Ray Ventures, Pallas Ventures and other unnamed backers.
With the fresh equity boost, the cybersecurity company is preparing for global expansion, increasing its adoption within enterprises and accelerating innovation.
Cybersecurity company Whistic bags $12m in its Series A round
Whistic, a vendor security platform, has scored $12m in its Series A round which was led by Emergence. Additional commitments to the round came from Album VC and unnamed existing investors. This capital injection is planned to support the expansion of operations and hiring more staff.
ID.me raises up to $8.3m in a new funding round
At the beginning of July, RegTech Analyst reported that US-based user and employee verification platform ID.me has raised up to $8.3m in a new funding round, according to a filing with the US SEC. At the time, we reported that the company was looking to raise $12.5m in the funding round, but it is unclear whether this figure was a hardcap. At the time, 32 investors had contributed to the funding round.
CYR3CON secures $8.2m in new investment
Cybersecurity company CYR3CON has closed an $8.2m investment round led by Pivotal Group, with participation by Trumpf Ventures, 3Lines Venture Capital, DF Enterprises, Hike Ventures and other investors.
CYR3CON will use the money to grow its AI-powered cyber attack prediction software platform.
“This new influx of capital and our partnership with Pivotal Group will enable us to obtain our growth objectives over the next 24 months,” said Paulo Shakarian, CEO of CYR3CON. “The pandemic has caused enterprises to increase their IT infrastructure yet must still secure it while staying within budget. Our AI based platform addresses these concerns head-on, enabling security teams to do more with less. Pivotal is the perfect partner for us to establish CYR3CON as the standard.”
Hummingbird soars to $8.2m Series A close
Anti-money laundering compliance technology developer Hummingbird RegTech has scored $8.2m in its Series A round.
The capital infusion was led by Flourish Ventures, with commitments also coming from Homebrew, Designer Fund, TTV Capital and a handful of angel investors.
The RegTech platform will use the money improve the quality and speed of communication among institutions, leverage structured datasets and to expand into new practice areas.
Furthermore, the company is hoping to continue operational growth, enter the European market, with the UK and Ireland its first targets.
With the round close, Hummingbird has raised a total of $11.8m. Its former investment was a $3m round from Homebrew Omidyar Network, TTV and Designer Fund, back in 2018.
Blockchain startup Valid Network bags $8m in seed round
Israel-based cybersecurity startup Valid Network has raised an $8m seed round to fuel the development of its technology, expand its team and to open a New York office.
FraudScope bags $7m in its Series A as it looks to scale its team
FraudScope, an AI-powered solution capable of identifying fraud, has collected $7m in its Series A round.
Contributions to the investment came from QED Investors, Brewer Lane Ventures and the GRA Venture Fund. Contributions also came from previous FraudScope backers Spider Capital, Mosley Ventures and TechSquare Labs.
Funds from the round will be used to scale the team and increase its product offering to meet new opportunities.
CyberTech100 company Mitiga said to raise $7m in its seed round
Earlier this year, Mitiga claimed a spot on the CyberTech100 list of the 100 most innovative cybersecurity companies in the world. Now the cloud incident readiness and response software solution provider has reportedly bagged $7m in its seed round. The investment was supplied by Clearsky Security, Glilot Capital, Flint Capital, Rain Capital and DNX Ventures, according to a report from Tech EU.
Israel-based Mitiga is a hybrid managed services solution for cloud environments. Its technology is used across banking, e-commerce, education, government and pharmaceuticals sectors.
PQShield closes £5.5m funding round
Some of you may remember PQShield as the quantum computing security startup that successfully bagged a place earlier this year on the CyberTech100 list. Now PQShield is gearing up to make a lot more noise, having exited stealth and closed a £5.5m round in July.
The injection was supplied by Kindred Capital, Crane Venture Partners and Oxford Sciences Innovation. Contributions also came from angel investors, including Andre Crawford-Brunt, former global head of equities at Deutsche Bank.
CyberSmart collects £5.5m in its Series A round
CyberSmart has bagged £5.5m in its Series A. Having bulked up its financial muscles, the company will said it will now be able to better help protect small and medium-sized businesses. The capital injection was supported by IQ Capital and a group of unnamed individual investors.
Data protection company Sotero bags $5m in its funding round
Data protection platform Sotero has scored a $5m funding round, which was led by Gutbrain Ventures. Additional support came from Boston Seed Capital and PBJ Capital.
Alongside the close of the round, Sotero has released what it claims to be the first data protection platform offering field-level encryption for data in use, data at rest and data in motion, across on-premise and cloud data stores.
Quorum Cyber secures $2.7m in a funding round
Quorum Cyber, a cybersecurity solution, has received a $2.7m funding round led by Maven Capital Partners. Scottish Investment Bank (SIB) also contributed to the round.
With this capital injection, the company will boost its growth and innovation of the platform. Funds will also be used to accelerate the internationalisation of the platform.
Spyderbat raises $2.4m in fudning as it preps for launch
Cybersecurity platform Spyderbat has raised $2.4m in its seed funding round, which was led by LiveOak Venture Partners and Benhamou Global Ventures. Also joining the round was cybersecurity veteran John McHale.
The company will use the fresh capital to accelerate the development of its product, which is set for launch later this year.
Cybersecurity platform SOC.OS said to raise £2m in funding round
SOC.OS, a cybersecurity platform, has reportedly raised £2m in a funding round to support the growth of its platform. The capital was supplied by Hoxton Ventures and SpeedInvest.
xorlab secures $1.2m in its pre-Series A
Switzerland-based cybersecurity company xorlab has held the $1.2m for its pre-Series A round. Spicehaus Partners AG served as the lead investors and will be an active partner to xorlab, it claims. Several other existing and new backers joined the round. With the equity boost, the company plans to hire more staff to help with its growth plans.
Circit collects €1.1m in its funding round as it positions for significant growth
Circit, audit confirmation platform, has collected €1.1m in its funding round, as the RegTech gears up for “significant expansion.”
Commodore Investments served as the lead investor for the round with additional capital coming from Enterprise Ireland. A selection of angel investors also contributed to the round including former Ulster Bank CEO Jim Brown and former AIB general manager John Power.
SignD closes €1m investment to bolster international growth efforts
Austrian RegTech platform SignD Identity has closed a €1m investment which will help it to bolster its international sales and marketing efforts. The investment was supported by a number of angel investors including QC Advisers founder Fritz Schweiger, former Jumio investor Felix Famira and others.
SignD offers a digital onboarding and KYC software solution for banking and insurance companies brokers and more. Moreover, the RegTech company is looking to release its Qualified Electronic Signature (QES) service later in the year.
Nozomi Networks secures funding from Telefónica Innovation Ventures
IoT security provider Nozomi Networks has secured an investment from Telefónica Innovation Ventures. The investment will see Spanish telecommunications firm Telefónica increase its work with Nozomi.
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