Key Global RegTech investment stats in Q3 2024:
- Global RegTech funding halved in Q3 QoQ
- UK leaps to the top of the pack as it secured 30% of the top 10 deals for the quarter
- MirrorWeb, a leading UK provider of digital communications archiving and regulatory compliance software secured $63m in a funding round making it the biggest UK RegTech deal in Q3
In Q3 2024, the global RegTech sector recorded 71 transactions, marking a 37% reduction from the 112 deals completed in Q3 2023.
However, there was a moderate increase of 20% compared to the 59 deals in Q2 2024, suggesting some regained momentum within the quarter.
Despite the slight uptick in activity from Q2, total RegTech funding fell sharply, reaching just $854m in Q3 2024, a 58% drop from the $2.03bn raised in Q3 2023 and a 48% decline from the $1.65bn raised in Q2 2024.
This trend points to heightened caution within RegTech investing, as total funding continues to shrink while deal count sees only minor fluctuations, indicating an industry-wide shift toward smaller, possibly lower-risk investments.
The top 10 deals in Q3 2024 were dispersed across six countries, with the United States and the United Kingdom each securing three top deals.
This is a notable change from Q3 2023, where the US dominated the sector with seven of the top deals, and nations like Norway and Germany were more active players in high-value transactions.
In Q3 2024, the presence of new entrants like France and Denmark suggests a growing geographic diversity in major RegTech investments, potentially pointing to an expanding regulatory environment across Europe.
Israel and Germany maintained a consistent presence among top deals across both periods, while the U.K.’s rise from no top deals in Q3 2023 to three in Q3 2024 underscores an evolving leadership role in RegTech, likely driven by increasing regulatory demands in the financial and data privacy sectors.
MirrorWeb, a leading UK provider of digital communications archiving and regulatory compliance software, has secured $63m in growth equity funding from Mainsail Partners, marking the largest RegTech deal in the UK for the quarter.
Known for its innovative Insight platform, MirrorWeb supports financial institutions in meeting complex regulatory requirements by enabling comprehensive archiving across websites, mobile, email, instant messaging, and social media channels.
This latest investment will drive the company’s product development and customer support capabilities, ensuring continued regulatory readiness for its clients.
With Mainsail’s support, MirrorWeb is positioned to enhance its value for financial services firms needing dependable, real-time compliance solutions, solidifying its impact on the RegTech sector in the UK.
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