Key US RegTech investment stats in Q1 – Q3 2025:
- US RegTech deal activity grew by 14% YoY
- California cemented its US RegTech leadership position as companies attracted over a third of all deals in the country
- SpecterOps, a RegTech and cybersecurity company specialising in identity risk reduction and adversary-focused security solutions, secured one of the biggest US RegTech deals in the first nine months with a $75m Series B funding round
US RegTech deal activity grew by 14% YoY
In the first three quarters of 2025, the US RegTech market saw a moderate decline in funding but an increase in overall deal activity.
The sector recorded 276 funding rounds, a 14% increase from the 243 deals completed during the same period in 2024, highlighting an improvement in transaction momentum.
However, total funding dipped to $3.6bn, marking a 7% decrease from the $3.9bn raised in the first three quarters of 2024.
This divergence between rising deal numbers and falling capital deployed suggests that although investor appetite for RegTech solutions strengthened, it did so with smaller deal sizes, reflecting a more cautious approach to valuations and late-stage financing.
California cemented its US RegTech leadership position as companies attracted over a third of all deals in the country
California remained the leading RegTech hub in the US, completing 101 deals (37% share) in the first three quarters of 2025, a 35% increase from the 75 deals (31% share) recorded in 2024.
New York followed with 47 deals (17% share), growing 42% from 33 deals (14% share) the previous year.
Texas secured third place with 21 deals (8% share), replacing Florida, which had completed 14 deals (6% share) in the same period of 2024.
Notably, both California and New York not only expanded their deal volumes but also strengthened their relative market shares, reinforcing their roles as the dominant centres of RegTech investment activity in the US.
SpecterOps, a RegTech and cybersecurity company specialising in identity risk reduction and adversary-focused security solutions, secured one of the biggest US RegTech deals in the first nine months with a $75m Series B funding round
The round was led by Insight Partners, alongside participation from M12, Cisco Investments and others.
The funding will accelerate the growth of its flagship platform, BloodHound Enterprise (BHE), the industry’s first solution focused on comprehensive removal of Identity-based Attack Paths in Microsoft Active Directory and Entra ID environments.
SpecterOps addresses a critical blind spot in enterprise security architecture by treating identity infrastructure as a dynamic, interconnected graph, enabling real-time detection, prioritisation and remediation of attack vectors.
With over 1.5m downloads of its open-source BloodHound tool and more than 200 enterprise customers already onboarded to BHE, the company has established itself as a trusted leader in the identity-centric security domain.
Its contributions to the cybersecurity community—spanning over 400 research outputs, 90 open-source tools and training of more than 7,000 professionals—underscore its pivotal role in shaping modern identity threat management.
This latest investment will allow SpecterOps to expand research, consulting and go-to-market capabilities, reinforcing its position as a frontrunner in proactive identity threat detection and regulatory resilience.
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