The first quarter of 2026 has proven to be a very strong period for RegTech funding raises, with close to $3bn raised across the first three months of the year.
On the back of a highly successful 2025, the RegTech sector was looking ahead to the new year with anticipation of even greater inward investment into the market.
With growing concerns surrounding the changing nature of financial crime as well as the potential black swans that could rear their head through the ongoing AI revolution and its ability to change how threat actors are doing business, RegTech investment hit the ground running early in the year, with the top deal for January going to an AI-native data and security platform, who pulled in over $400m – a glowing endorsement for the sector.
An increasingly unstable geopolitical and global environment created even more concern around the safety and stability of the global financial market, as well as further challenges from hackers and threat actors who were seeking ways to destabilise political enemies.
These all came together to drive big funding raises across January, February and March, with the sector experiencing particularly strong funding streaks in January and March.
Recent research by FinTech Global found that US RegTech investment reached $2bn in Q1 2026, across 103 deals, a 28% rise in funding and a 36% increase in deal volume compared with Q1 2025, when 76 transactions raised $1.6bn.
Against the preceding quarter, Q4 2025, the picture was more mixed: deal volume held broadly steady, dipping just 2% from 105 deals, while funding slipped 10% from $2.2bn.
Taken together, the data points to a sector that has grown considerably on a year-over-year basis while showing early signs of stabilisation at a higher level of activity following the strong Q4 2025 performance.
Here is a month-by-month look back at the first quarter.
January
January proved to be a powerful start to the year for RegTech investment, with over $1bn raised in total across all of the biggest deals. Strong investment trends were seen in areas related to AI, with AI security taking home a large percentage of the investment.
Here are this month’s biggest deals.
Enterprise AI security company Cyera raises $400m
Cyera, an AI-native data and security platform focused on protecting enterprise data and artificial intelligence systems, has raised $400m.
The company has secured $400m in a Series F funding round led by funds managed by Blackstone, with participation from existing investors Accel, Coatue, Cyberstarts, Georgian, Greenoaks, Lightspeed Venture Partners, Redpoint, Sapphire, Sequoia Capital and Spark.
The raise brings Cyera’s total funding to more than $1.7bn and values the business at $9bn, tripling its valuation compared with a year ago.
Founded to address the growing complexity of enterprise data environments, Cyera provides organisations with unified visibility and control over sensitive data as AI adoption expands.
Upwind raises $250m series B to scale runtime-first cloud security
Upwind, a runtime-first cloud security company, has raised $250m in Series B funding as it looks to accelerate product development and global expansion amid strong enterprise adoption.
The funding round was led by Bessemer Venture Partners, with participation from Salesforce Ventures and Picture Capital. Existing backers including Greylock, Cyberstarts, Craft Ventures and TCV also participated. The raise brings the company’s total funding to $430m.
The Series B marks the start of what Upwind calls “The Next Wave”, a new phase focused on scaling its runtime-first approach to cloud security as enterprises adopt AI-driven and real-time cloud applications.
AI security firm Torq bags $140m Series D at $1.2bn valuation
Torq, an agentic AI-driven cybersecurity company focused on transforming SOCs has announced the completion of a significant new funding round at $140m.
The company has raised $140m in a Series D funding round, pushing its valuation to $1.2bn and bringing total funding to $332m. The round was led by Merlin Ventures, with participation from existing investors including Evolution Equity Partners, Notable Capital, Bessemer Venture Partners, Insight Ventures Partners and Greenfield Partners.
Founded to modernise how organisations manage security operations, Torq develops an AI SOC Platform designed to automate alert triage, investigations and response at enterprise scale.
Aikido Security secures $60m to advance autonomous security
Aikido Security has reached a major growth milestone with a fresh funding round that values the business at $1bn.
The company has raised $60m in a Series B funding round led by DST Global, with participation from PSG Equity and continued backing from existing investors Notion Capital and Singular.
Founded in 2022, Aikido Security was built to address the growing complexity of modern software development, where applications are continuously updated and increasingly shaped by AI-generated code and autonomous systems.
AI cyber defence firm Novee bags $51.5m to counter attacks
Novee has emerged from stealth with $51.5m in total funding, marking one of the fastest early-stage funding trajectories seen in the cybersecurity sector.
The funding round was led by YL Ventures, Canaan Partners and Oren Zeev through Zeev Ventures, backing the company less than four months after its founding as investor interest accelerated alongside growing concerns around AI-powered cyber threats.
Founded to address the widening gap between increasingly automated attacks and largely human-paced security testing, Novee has developed an AI-driven penetration testing platform designed to simulate the behaviour of real-world attackers.
Outtake raises $40m led by ICONIQ to fight AI deception
Outtake, a digital trust platform protecting organisations from AI-driven impersonation, has raised a $40m Series B led by ICONIQ.
The round was led by ICONIQ, with participation from CRV and S32, alongside a group of technology and security executives investing as angel backers.
Angel investors joining the round include Satya Nadella, CEO of Microsoft; Nikesh Arora, CEO of Palo Alto Networks; Bill Ackman, CEO of Pershing Square Holdings; Shyam Sankar, CTO of Palantir; Trae Stephens, co-founder of Anduril; Bob McGrew, former VP of Research at OpenAI; Guillermo Rauch, CEO of Vercel; and John Donovan, former CEO of AT&T.
Outtake said digital identity is “rapidly eroding” as AI reduces the cost and complexity of cybercrime, enabling deception to be executed faster and at greater scale across the channels organisations use to engage the public.
Software security firm depthfirst raises $40m Series A
depthfirst, an applied AI lab focused on securing modern software systems, has announced a new funding round as it looks to address the growing risks facing the global software ecosystem.
The company has raised $40m in a Series A funding round led by Accel, with participation from Alt Capital, BoxGroup, Liquid 2 Ventures, Mantis VC and SV Angel. The round also included backing from a group of prominent angel investors, including Jeff Dean, Kirsten Green, Colin Evans, Logan Kilpatrick and Julian Schrittwieser.
Founded in 2024, depthfirst develops AI-driven security technology designed to identify and fix vulnerabilities across the full software stack.
Fraud protection FinTech Memcyco bags $37m funding
Memcyco, a real-time digital risk protection platform, focused on stopping brand impersonation scams and ATO fraud, has announced fresh funding of $37m.
The firm said it has secured $37m in an oversubscribed Series A round led by new investors NAventures, the corporate venture arm of National Bank of Canada, E. León Jimenes, and PagsGroup, the family office of Steve Pagliuca, with participation from existing backers Capri Ventures and Venture Guides.
Memcyco offers an “agentless” approach to detecting and disrupting digital impersonation attempts, aiming to give enterprises visibility into scams as they unfold and intervene before credentials are stolen or customers are defrauded, without adding friction to users.
Blackbird.AI secures $28m to counter AI disinformation
Blackbird.AI, an AI-driven cybersecurity company focused on protecting organisations and executives from narrative-based attacks, has announced a significant acceleration in its commercial momentum alongside a fresh injection of strategic capital.
The company said it has raised $28m in new funding, with participation from Ten Eleven Ventures, Dorilton Ventures and cybersecurity industry leaders Dave DeWalt and Chris Young.
The latest round brings Blackbird.AI’s total funding since inception to $58m, underlining growing investor confidence in the company’s approach to tackling disinformation, misinformation and deepfake-driven threats.
February
Whilst the shortest month of the year, the RegTech sector was still able to pull in a strong February, with $620m raised across the month in all deals. The field of raises was more mixed, with the leading investment focused around AI compliance whilst raises were seen for blockchain intelligence firms and identity verification.
Here are February’s deals.
AI compliance firm Bretton AI lands $75m
Bretton AI has raised fresh capital as it rebrands from Greenlite AI and broadens its ambition to set a new benchmark for how artificial intelligence is deployed across regulated financial institutions.
The company secured $75m in a Series B round led by Sapphire Ventures, with continued backing from Greylock, Thomson Reuters Ventures, Canvas Ventures and Y Combinator.
TIAA Ventures joined as a new investor, and Rajeev Dham, partner at Sapphire Ventures, has taken a seat on Bretton AI’s board. The financing comes less than a year after its Series A.
Blockchain intelligence firm TRM Labs bags $70m Series C
TRM Labs, a RegTech company focused on using artificial intelligence to disrupt criminal networks and counter national security threats, has announced the close of a $70m Series C funding round.
The round was led by Blockchain Capital, which previously backed the company at pre-seed stage in 2018, alongside returning investors CMT Digital, Goldman Sachs, Bessemer Venture Partners, DRW Venture Capital, Y Combinator, Thoma Bravo, Alumni Ventures, Citi Ventures and Brevan Howard Digital, with participation from new strategic investor Galaxy Ventures.
Founded to help public- and private-sector institutions address the growing risks associated with blockchain-based activity, TRM Labs provides an intelligence platform designed to identify, track and disrupt illicit behaviour across digital asset ecosystems.
Gambit Security raises $61m in seed and Series A funding
Gambit Security, an AI-native enterprise resilience platform, has emerged from stealth with $61m in seed and Series A funding raised in under 12 months from Spark Capital, Kleiner Perkins, and Cyberstarts.
The company’s platform connects to all environments, security solutions, and backup tools to autonomously map an organisation’s infrastructure and backup data, identifying gaps that put continuity at risk.
Despite most enterprises having extensive backup coverage, Gambit Security found that only around 5% of systems were resilient against ransomware attacks. The platform also typically reduces cloud storage costs by at least 10%, with additional benefits including lower cyber-insurance premiums and reduced compliance overhead.
Identity verification firm IDfy secures $53m
Indian online identity verification firm IDfy, a RegTech platform specialising in digital trust, compliance and fraud prevention, has secured fresh capital as it looks to scale both at home and overseas.
The company raised 476 crore rupees, equivalent to $53m, in a series F funding round comprising a mix of primary and secondary transactions, said Tech in Asia.
The round was led by Neo Asset Management’s Neo Secondaries Fund, with participation from existing backers Blume Ventures, Analog Capital, Elev8, IndiaMART and Kae Capital.
Secrets security platform GitGuardian bags $50m
GitGuardian, a France-founded cybersecurity company specialising in secrets detection and non-human identity (NHI) security, has raised fresh capital of $50m.
The company has secured $50m in a Series C funding round led by Insight Partners, with participation from Quadrille Capital and existing investors Balderton, BPI, Eurazeo, Fly Ventures and Sapphire Ventures. The backing brings together US and European growth capital as GitGuardian positions itself at the intersection of cybersecurity, compliance and AI infrastructure.
GitGuardian’s platform is designed to detect and remediate exposed secrets – such as API keys, tokens and credentials – embedded in code repositories and collaboration tools.
RapidFort secures $42m to tackle software supply chain risks
RapidFort, a cybersecurity company focused on securing the modern software supply chain, has raised fresh capital of $42m.
The company has closed a $42m Series A funding round led by Blue Cloud Ventures and Forgepoint Capital, with participation from existing investor Felicis Ventures. Additional backers in the round include Alumni Ventures, Boulder Ventures, Brave Capital, Evolution Ventures, Florida Funders, Gaingels and Mana Ventures.
RapidFort operates in the fast-growing software supply chain security market, which has come under increasing pressure as AI accelerates the pace of software development while simultaneously lowering the barrier for attackers.
Security AI platform Cogent bags $42m Series A
Cogent Security, a cybersecurity company building autonomous AI agents for enterprise vulnerability remediation, has raised new capital totalling $42m.
The company has secured $42m in a Series A round led by Bain Capital Ventures, with participation from existing investor Greylock Partners and Definition. Founders and executives from OpenAI, Abnormal Security, and Datadog also invested personally. The latest funding brings Cogent’s total capital raised to $53m, just six months after its official launch.
Cogent focuses on what happens after vulnerabilities are discovered. While modern scanning tools can identify weaknesses in software systems, many enterprises struggle with the manual coordination required to remediate them.
Astelia bags $35m to boost AI exposure management
Astelia, a cybersecurity platform founded by former leaders of Israel’s National Red Team, has raised fresh capital as enterprises grapple with a surge in AI-driven cyber threats and mounting vulnerability backlogs.
The company has secured $35m in combined seed and Series A funding. The round was led by Index Ventures and Team8, with participation from Holly Ventures. Astelia said it is already working with dozens of customers, including several Fortune 500 companies, as demand grows for more targeted approaches to vulnerability management.
Security teams are facing mounting pressure. Organisations now contend with an average of 135 new vulnerabilities each day, a figure the company says is 40% higher than a year earlier.
AI-powered DLP provider ORION secures $32m investment
ORION, an AI-powered data security company focused on rethinking how enterprises prevent data loss, has closed a $32m funding round as demand accelerates for alternatives to traditional DLP tools.
The round was led by Norwest, with participation from IBM and existing investors PICO Venture Partners, Lama Partners, Underscore VC, alongside others. The latest raise comes less than a year after the company’s seed funding and brings ORION’s total capital raised to $38m.
ORION is positioning itself as a new generation of DLP provider, replacing traditional policy-heavy approaches with autonomous, context-driven detection.
SMB cybersecurity provider RADICL secures $31m Series A
RADICL has secured fresh growth capital of $31m as it looks to accelerate the development of its autonomous security operations platform.
The company has closed a $31m Series A funding round led by Paladin Capital Group, with participation from returning backers Access Venture Partners and Denver Ventures, alongside new investor Cervin Ventures.
RADICL positions itself as a specialist provider of an autonomous virtual security operations centre, or vSOC, designed specifically for SMBs that form part of the US Defence Industrial Base.
Business identity platform Duna bags €30m funding round
Duna, an identity FinTech founded by former Stripe executives, has raised fresh capital of €30m as it looks to tackle one of the most persistent challenges facing digital business: trusted and reusable business identity.
The company announced it has secured €30m in a Series A funding round led by CapitalG, Alphabet’s independent growth fund. Existing backers Index Ventures, Puzzle Ventures and Frank Slootman, chairman of Snowflake, also participated in the round.
Founded in 2023, Duna is building what it describes as global trust infrastructure for the internet. Its platform provides a digital passport for businesses, enabling organisations to verify, share and reuse business identity information securely.
AI SaaS security platform Reco bags $30m
Reco, an AI SaaS security platform focused on protecting enterprise software environments, has raised fresh capital.
The company has secured $30m in a Series B round led by Zeev Ventures. The raise included participation from existing backers Insight Partners, boldstart ventures and Angular Ventures, alongside new corporate investors Workday Ventures, TIAA Ventures, S Ventures and Quadrille Capital.
The latest injection comes less than 10 months after Reco’s previous funding round and brings its total funding to $85m.
VulnCheck lands $25m to expand threat intelligence
VulnCheck, a US-based exploit intelligence company focused on delivering machine-consumable vulnerability and threat data, has raised capital totalling $25m.
The company has secured $25m in a Series B funding round led by Sorenson Capital, with participation from National Grid Partners and existing investors Ten Eleven Ventures and In-Q-Tel (IQT). The latest raise brings VulnCheck’s total funding to $45m.
VulnCheck provides exploit intelligence designed to close what it describes as the “exploitation-timing gap” – the critical window between when a software vulnerability is disclosed and when it is actively exploited.
Supply chain security start-up Lema AI bags $24m
Lema AI, an agentic AI security platform focused on enterprise supply chain risk, has emerged from stealth with $24m.
The company has raised the investment in a Series A funding round led by Team8, with participation from Salesforce Ventures. The business was previously backed at seed stage by F2 Venture Capital, which led the earlier round.
Lema AI positions itself at the intersection of cybersecurity and third-party risk management, addressing what it describes as the limitations of traditional compliance-driven approaches.
Nucleus Security secures $20m Series C funding
Nucleus Security, a cybersecurity company specialising in unified vulnerability and exposure management, has secured fresh backing of $20m.
The company positions itself as a system of record for assets, vulnerabilities and exposures, helping organisations move from raw security data to concrete action.
The firm has raised $20m in a Series C funding round led by Delta-v Capital. Additional participation came from Arthur Ventures, whose existing relationship with the company underlines continued investor confidence in its strategy and execution.
March
March provided to be the golden month of the three for the biggest funding take-homes, with $1.32bn raised across all the deals this month.
As the global political environment continues to heat up, countries and businesses alike are seeking ways to protect their digital environments – the top deal this month was a $375m raise for a data privacy and security platform, reflecting a changing environment.
Here are March’s deals.
Cloaked bags $375m to make data privacy the default
Cloaked, a consumer-first privacy and security platform, has raised $375m in a combination of Series B funding and growth financing through General Catalyst’s Customer Value Fund.
The round was led by General Catalyst and Liberty City Ventures, with a broad coalition of investors also participating, including Lux Capital, Human Capital, Marquee Ventures, Fifth Growth Fund, NFL Players Association, LG Technology Ventures, Assurant Ventures, and DuckDuckGo, among others.
The fresh capital will be deployed across several areas, including accelerating product development, expanding the team, and scaling internationally across both consumer and enterprise segments.
Armadin lands $189.9m for AI-driven cyber defence
Armadin has announced a record-breaking $189.9m combined Seed and Series A funding round aimed at helping organisations defend against increasingly sophisticated AI-driven attacks.
The investment was led by Accel, with participation from Google Ventures, Kleiner Perkins, Menlo Ventures and In-Q-Tel. Existing investors 8VC and Ballistic Ventures also joined the round with follow-on backing. According to the company, the deal represents the largest combined Seed and Series A funding round ever recorded in the cybersecurity sector.
Armadin is developing a platform designed to help organisations identify and respond to security risks at machine speed.
Cybersecurity firm Kai secures $125m for AI defence
Kai, an AI-driven cybersecurity company focused on autonomous threat defence, has emerged from stealth with up to $125m in funding.
The company announced it has raised $125m in funding, led by Evolution Equity Partners, with participation from N47 and a group of strategic investors.
Kai has developed what it describes as the first agentic AI cybersecurity platform designed to operate autonomously at machine speed. The platform uses intelligent agents capable of reasoning, acting and adapting across multiple cybersecurity functions, including threat intelligence, exposure management, detection and incident response.
XBOW raises $120m Series C to scale autonomous hacker
XBOW, an autonomous offensive security company founded in January 2024, has raised $120m in a Series C funding round, valuing the business at over $1bn.
The round was led by DFJ Growth and Northzone, with new investors Sofina and Alkeon Capital also participating. Existing backers Altimeter, NFDG Ventures and Sequoia Capital took part as well.
As part of the investment, DFJ Growth venture partner Ramin Sayar will join XBOW’s board of directors, bringing experience from his time as the former CEO of Sumo Logic to help the company scale operations and expand into the enterprise market.
The fresh capital will be used to accelerate XBOW’s expansion across enterprise markets, drive continued product innovation and support international growth. The company said the investment will enable it to bring its autonomous offensive security capabilities to the wider industry.
Oasis Security lands $120m to govern enterprise AI agents
Oasis Security, a cybersecurity firm specialising in non-human identity and agentic access governance, has raised $120m in a Series B funding round, bringing its total funding to $195m.
The round was led by Craft Ventures, with participation from existing investors Cyberstarts, Sequoia Capital, and Accel. The investment reflects growing recognition across the enterprise sector that managing access in an increasingly AI-driven infrastructure demands a fundamentally different approach to security.
The company has built a platform designed to govern how AI agents and machine identities interact with critical enterprise systems.
Cape raises $100m Series C for secure mobile connectivity
Cape, a privacy-first mobile carrier, has raised $100m in a Series C funding round co-led by Bain Capital Ventures and IVP. New investors 01 Advisors, 137 Ventures, Definition, and Fifth Down Capital also participated in the round.
Founded in 2022, Cape has built its mobile network from the ground up with the explicit aim of protecting US government agencies, businesses and privacy-conscious individuals from cellular security threats. Unlike traditional mobile virtual network operators (MVNOs) that simply resell services from the major carriers, Cape operates its own mobile core and SIMs — a distinction that underpins its security offering.
The funding will be used to accelerate adoption of its services across government, enterprise and consumer markets, as well as to support further research and development.
Data security firm Jazz lands $61m to reinvent DLP
Jazz, a cybersecurity startup focused on transforming DLP into an AI-driven intelligence platform that understands how corporate data is used, has emerged from stealth with new funding of $61m.
The company has raised $61m across seed and Series A funding rounds. The investment was led by Glilot Capital Partners and Team8, with additional participation from Ten Eleven Ventures (1011vc), Merlin Ventures, Encoded Ventures and MassMutual Ventures, alongside several cybersecurity entrepreneurs.
Jazz is building a platform designed to rethink how organisations manage data loss prevention. Traditional DLP tools are typically built on rigid rules designed to block sensitive information—such as product roadmaps, source code, customer databases or financial documents—from leaving an organisation through routine employee activity.
Surf AI raises $57m to tackle enterprise security ops
Surf AI, an agentic operations platform built for modern security teams, has launched with $57m in funding aimed at accelerating the development of its AI-native security execution capabilities.
The raise was led by Accel, with participation from existing backers Cyberstarts and Boldstart Ventures. The proceeds will be directed towards product development, team expansion, and scaling to support broader enterprise adoption.
Founded in 2024 by a team of veterans from the Israeli cybersecurity ecosystem — including Yair Grindlinger, Elad Horn, Roie Cohen Duwek, Avner Gideoni, and Brenton Gumucio — Surf AI was built in response to what its founders see as a fundamental mismatch between the complexity of today’s threat landscape and the operational models security teams are still relying on.
Cybersecurity firm Cylake secures $45m seed round
Cylake, a cybersecurity company focused on AI-native and data-driven protection for highly regulated organisations, has officially emerged from stealth with $45m.
The company has raised $45m in a seed funding round led by Greylock Partners, with participation from additional technology investors.
The investment marks the company’s first external funding since its formation and reflects growing interest in cybersecurity solutions designed for environments that require strict data sovereignty and operational control.
Cloud security firm Native emerges from stealth with $42m
Native, a cloud security control plane designed to embed security directly into cloud architecture, has emerged from stealth with $42m in total funding.
The company’s $31m Series A was led by Ballistic Ventures, with continued participation from seed investors General Catalyst, YL Ventures, and Merlin Ventures. Phil Venables, former chief information security officer of Google Cloud, has also joined Native’s board of directors.
Native’s platform is built to translate security intent into enforceable, secure-by-design cloud architecture that continuously adapts across AWS, Microsoft Azure, Google Cloud, and Oracle Cloud Infrastructure.
Cybersecurity company Bold bags $40m funding round
Bold, an enterprise cybersecurity company focused on preventing user-based threats at the endpoint, has emerged from stealth after securing a $40m funding round to support the launch of its AI-powered security platform.
The funding round brought in $40m from investors including Bessemer Venture Partners, Picture Capital and Red Dot Capital Partners, providing the company with fresh capital as it introduces its technology to the market.
Bold develops endpoint security technology designed to reduce user-related risks across enterprise systems. The company focuses on protecting what it describes as the “last mile” of the enterprise — employee devices that connect internal systems with the outside world. Traditionally, organisations have relied on a mix of legacy tools such as data loss prevention (DLP), insider risk monitoring and application oversight to address these risks.
Cybersecurity FinTech Onyx Security secures $40m funding
Onyx Security has launched with $40m in funding as it seeks to address emerging risks tied to the rapid adoption of agentic artificial intelligence across organisations.
The company confirmed it raised $40m from investors including Conviction Partners and Cyberstarts. The funding accompanies the firm’s public launch and positions the business to capitalise on growing enterprise demand for tools capable of monitoring and controlling increasingly autonomous AI systems.
Onyx Security is developing what it describes as a secure AI control plane designed to oversee the deployment and operation of AI agents within enterprises.
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