Key US RegTech investment stats in Q1 – Q3 2025:
- US RegTech funding fell by 7% YoY in Q1 – Q3
- Californian companies secured 60% of top 10 US RegTech deals as the state dominated the marketplace
- Quavo Fraud & Disputes, a Delaware-based RegTech specialising in automated fraud and dispute management for financial institutions, secured one of the top RegTech deals of the first three quarters with a $300m investment
US RegTech funding fell by 7% YoY in Q1 – Q3
Across the first three quarters of 2025, the US RegTech sector raised $3.6bn from 210 deals, reflecting a slight decline in funding compared with the same period in 2024 but an increase in investment activity.
Total capital fell by 7% from the $3.9bn recorded during the first three quarters of 2024, while the number of transactions rose by 11.7%, increasing from 188 to 210 deals.
This combination of lower funding but higher deal volume suggests a shift towards a larger number of smaller transactions, indicating that investors may be spreading capital more cautiously across a wider pool of early-stage or lower-ticket opportunities rather than concentrating funding into fewer high-value rounds.
Californian companies secured 60% of top 10 US RegTech deals as the state dominated the marketplace
The distribution of the top 10 deals highlights a notable reshaping of state-level participation in major RegTech investments.
In the more recent period, California dominated with six large deals, while Florida, Virginia, Delaware and Texas each secured one.
This marks a significant departure from the previous year, when New York led with four top deals and Georgia followed with three, alongside single deals from California, New Jersey and Illinois.
The absence of New York and Georgia from the latest top 10 list represents the most prominent shift, underscoring a transition in where the largest RegTech rounds are taking place.
Meanwhile, California’s rise from a single top deal to six signals a strengthening of its role as a hub for high-value RegTech investment, while the appearances of Virginia, Delaware and Texas point to a broader geographic diversification across the US market.
Quavo Fraud & Disputes, a Delaware-based RegTech specialising in automated fraud and dispute management for financial institutions, secured one of the top RegTech deals of the first three quarters with a $300m investment
The investment was from Spectrum Equity.
The company provides cloud-based solutions that enable banks, FinTechs, and credit unions to streamline and automate fraud resolution and chargeback processes.
Its flagship platform, QFD, leverages artificial intelligence and advanced automation to manage intake, investigation, recovery, and client communications, reducing manual workloads by up to 80% and improving recovery rates to as high as 85%.
Serving more than 12.5 million consumer disputes annually and having recovered over $1.4bn for fraud victims, Quavo is redefining how financial institutions handle fraud and dispute workflows while strengthening customer trust.
The new capital will accelerate product innovation, expand AI-led capabilities, and enhance its go-to-market operations to meet growing demand.
With a proven record of 60% annual revenue growth since 2022, Quavo continues to position itself as a leading force in RegTech, enabling financial institutions to achieve greater compliance efficiency, customer satisfaction, and operational resilience.
