Key global RegTech investment stats in Q1 – Q3 2025:
- Global RegTech funding increased by 7% YoY
- Trend analysis shows funding is expected to grow by 12% for 2025
- Deals under $100m surged by 29% as investors loosened their purse strings
- Protecht, a leader in governance, risk, and compliance (GRC) solutions, secured the biggest global RegTech deals of the first nine months with a $280m investment from PSG Equity to accelerate its global expansion
Global RegTech funding increased by 7% YoY
Across the first three quarters of 2025, the Global RegTech market recorded an increase in both funding and deal activity compared with the same period in 2024.
Total funding rose to $5.5bn, a 7% increase from the $5.1bn raised during the first three quarters of 2024.
Deal volume also grew to 385, up 8% from the 356 deals completed over the same period last year.
Despite this uplift in activity, the average deal size remained broadly stable, reaching $14.3m in the first three quarters of 2025 compared with $14.4m in the corresponding period of 2024, indicating steady market appetite spread relatively evenly across deal sizes.
Trend analysis shows funding is expected to grow by 12% in 2025
If the performance of the opening three quarters of 2025 were projected across the full year, total 2025 funding would reach $7.3bn from an estimated 513 deals.
This would represent a 12% increase in funding compared with the $6.5bn raised in 2024 and a 16% rise in deal activity relative to the 444 deals completed last year.
Under this projection, the average deal size for 2025 would remain close to current levels at around $14.3m, suggesting a continuation of balanced investor appetite across the market.
While such projections assume consistent performance, they highlight a sector still demonstrating resilience and incremental growth.
Funding patterns across deal sizes reveal diverging momentum.
Deals under $100m surged by 29% as investors loosened their purse strings
In the first nine months of 2025, deals under $100m totalled $3.6bn, a 29% increase from the $2.8bn recorded over the same period in 2024.
By contrast, deals worth $100m or more declined to $1.9bn, a 20% drop from the $2.3bn raised in the first three quarters of 2024.
Applying the projection method, full-year 2025 funding for deals under $100m would reach an estimated $4.9bn, significantly above the $3.5bn recorded in 2024, while funding from large-scale deals would total around $2.5bn, below the $3.0bn seen last year.
These figures indicate a notable shift toward smaller and mid-sized transactions, with investors increasingly favouring earlier-stage or mid-market RegTech propositions over major high-value rounds.
Protecht, a leader in governance, risk, and compliance (GRC) solutions, secured the biggest global RegTech deals of the first nine months with a $280m investment from PSG Equity to accelerate its global expansion
Operating at the intersection of risk and technology, Protecht provides its enterprise risk management platform to help organisations move away from manual processes towards integrated, AI-driven risk solutions.
With regulatory scrutiny intensifying and over 79% of global data now under policy regulations, Protecht’s technology enables firms to manage third-party risk, compliance, and governance more effectively.
Its platform leverages automation and advanced analytics to deliver real-time insights, strengthen resilience, and support smarter decision-making across industries including financial services, government, and education.
The new capital will supercharge Protecht’s growth and product innovation, particularly in embedding AI into its risk management tools, positioning it as a global leader in the $22bn risk management software market.
This deal underscores the rising prominence of Australian tech firms in providing mission-critical, scalable solutions for global enterprises navigating increasingly complex regulatory environments.
