United States RegTech investment stats in 2024:
- US RegTech deal activity dropped by 28% YoY
- Californian companies secured 31% of the US RegTech deals as it continued its domination of the marketplace in 2024
- New York based Claroty, specialists in the protection of cyber-physical systems, secured one of the biggest US RegTech deal for the first year with a $100m funding round
US RegTech deal activity dropped by 28% YoY
The US RegTech market experienced a decline in both funding and deal activity in 2024 compared to 2023.
RegTech companies raised $5.01bn in 2024, marking a 28% decrease from the $6.99bn recorded in 2023.
Deal activity also saw a sharp decline, with 228 deals completed in 2024, down 45% from the 413 deals recorded in 2023.
While 2024’s funding remained higher than the $4.39bn raised in 2020, the reduction in both funding and deal count highlights a challenging investment environment, reflecting shifting priorities among investors and ongoing economic pressures.
Californian companies secured 31% of the US RegTech deals as it continued its domination of the marketplace in 2024
California continued to lead in RegTech deal activity, with 93 deals (31% share) in 2024, representing a 37% decline from the 148 deals recorded in 2023.
New York followed with 46 deals (15% share), a decrease of 40% from the 77 deals completed in the previous year.
Florida ranked third with 19 deals (6% share), a 50% decline from the 38 deals reported in 2023.
Despite these significant drops, California and New York reinforced their dominant positions, emphasising their ongoing influence in the US RegTech ecosystem, even amid the sector’s overall contraction.
New York based Claroty, specialists in the protection of cyber-physical systems, secured one of the biggest US RegTech deal for the first year with a $100m funding round
This significant financial boost comes from a group of prestigious investors, including Delta-v Capital leading the equity charge, complemented by contributions from AB Private Credit Investors at AllianceBernstein, Standard Investments, Toshiba Digital Solutions, SE Ventures, Rockwell Automation, and Silicon Valley Bank, a division of First Citizens Bank.
The company specialises in safeguarding cyber-physical systems (CPS) across various sectors, including industrial, healthcare, commercial, and the public sector, while ensuring regulatory compliance through comprehensive risk management and monitoring solutions.
By integrating advanced RegTech solutions into its offerings, Claroty helps organisations navigate complex regulatory landscapes, ensuring compliance and robust protection for the Extended Internet of Things (XIoT).
The newly acquired funds are earmarked for scaling Claroty’s platform across key verticals and regions, enhancing product innovation, and fostering strategic partnerships, supporting the company’s efforts in expanding its reach within the public sector and critical infrastructure industries across the Americas, EMEA, and Asia-Pacific.
Keep up with all the latest FinTech research here
Copyright © 2025 FinTech Global
