Key Canadian RegTech investment stats in H1 2024:
- Canadian RegTech funding increased by 86% YoY
- Trend analysis showed Canadian RegTech deal volume for the year is set to double compared to 2023
- Thentia, a RegTech leader in the Canadian marketplace, secured the largest RegTech deal in Canada in H1 2024, with a Series B funding round of $38m
During the first six months of 2024, the Canadian RegTech sector was off to a strong start to the year in terms of deal activity and funding. A total of nine deals were recorded in the first half of the year, marking an 80% increase compared to the five deals completed during H1 2023. RegTech companies in Canada raised $67m in H1 2024, a substantial 86% jump from the $36m raised in the same period in 2023.
If the current trend continues, the projected number of deals for the Canadian RegTech market in 2024 is set to reach 18, a 2x increase from the 9 deals completed in 2023. Funding for the year is on track to reach approximately $134m, a 28% increase from the $104.6m raised in 2023. This suggests that while deal activity and overall funding are both on the rise, investors are showing greater interest in the sector, potentially driven by increased demand for regulatory technologies.
The average deal value in H1 2024 stood at approximately $7.4m, which is lower than the $17.2m average in H2 2023 but higher than the $7.2m in H1 2023. This suggests that while more deals were made in H1 2024, the focus may have shifted towards a mix of smaller and mid-sized investments rather than large-scale funding rounds.
Thentia, a leading innovator in regulatory technology, has secured US$38m in a Series B extension round, marking it the largest RegTech funding rounds in Canada for H1 2024. The investment, led by existing backers including First Ascent Ventures, Spring Mountain Capital, BDC Capital, and Espresso Capital, will accelerate Thentia’s expansion and enhance its AI-driven platform, Thentia Cloud. Designed specifically for regulators, Thentia Cloud digitizes and streamlines critical regulatory functions, enabling efficient license management, enforcement, and investigations. With this funding, Thentia aims to expand globally and introduce new innovations, solidifying its leadership in transforming regulatory processes for public protection.
Keep up with all the latest FinTech research here
Copyright © 2024 FinTech Global
