{"id":1,"date":"2016-05-10T03:48:21","date_gmt":"2016-05-10T03:48:21","guid":{"rendered":"http:\/\/wp452m.a10-52-158-154.qa.plesk.ru\/wordpress\/?p=1"},"modified":"2018-02-09T16:13:55","modified_gmt":"2018-02-09T16:13:55","slug":"deal-makers","status":"publish","type":"post","link":"https:\/\/fintech.global\/globalpaytechsummit\/deal-makers\/","title":{"rendered":"RegTech investment saw a strong end to the year as funding more than doubled QoQ"},"content":{"rendered":"<h4><strong>With nearly $0.5bn, the last quarter of 2017 accounted for 43.2% of the total amount invested in the whole year<\/strong><\/h4>\n<ul>\n<li>The RegTech industry saw $448m invested in Q4 2017 \u2013 more than double the value of the previous quarter, making it the strongest funding quarter to date.<\/li>\n<li>This surge is partially due to a rise in the funding raised from deals valued above $40m which increased by 4.7x. Additionally, funding raised from sub-$40m deals increased by 1.6x.<\/li>\n<li>The largest RegTech deal of Q4 2017 went to MetricStream, a provider of cloud-based solutions for governance, risk and compliance. The company raised $65m in a venture round led by Clearlake Capital Group with co-investment from Goldman Sachs, Sageview Capital and EDBI.<\/li>\n<li>Despite the surge in total amount invested, deal activity in Q4 2017 remained well within range of historic levels at 23 deals, 7 less than in the same quarter last year.<\/li>\n<\/ul>\n<h4><strong>Global RegTech investments reached a new high in 2017, surpassing $1bn-worth of funding<\/strong><\/h4>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-15777 size-full td-animation-stack-type0-2\" src=\"http:\/\/13.90.211.187\/wp-content\/uploads\/2018\/01\/2-3.png\" alt=\"\" width=\"583\" height=\"383\" \/><\/p>\n<ul>\n<li>The total amount invested in RegTech companies globally increased steadily at a CAGR of 10.8% between 2014 and 2017 to reach a total of $1.04bn.<\/li>\n<li>As the RegTech industry matures the growth in investments is mainly driven by later-stage deals. Last year funding from deals valued above $40m increased by more than 50% YoY, whilst funding from deals in the $0-40m category remained fairly steady.<\/li>\n<li>In contrast to this, deal activity dropped in 2017 to reach its lowest value since 2013. Correspondingly, the average deal size increased from $9.8m in 2016 to $13.5m in 2017.<\/li>\n<\/ul>\n<h4><strong>The shift towards larger deals picked up again in 2017, after a pause in 2016<\/strong><\/h4>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-15778 size-full td-animation-stack-type0-2\" src=\"http:\/\/13.90.211.187\/wp-content\/uploads\/2018\/01\/3.-Deal-by-Size-1.png\" alt=\"\" width=\"590\" height=\"441\" \/><\/p>\n<ul>\n<li>There was a shift towards larger deals from 2014 to 2015, as demonstrated by the share of sub-$1m deals falling from 40% to 28.4%. This category then remained steady over the next year, before dropping in share again by 15.8% between 2016 and 2017.<\/li>\n<li>The decrease in share of smaller deals was partially offset by an increase in deals valued above $25m. This category more than doubled its share between 2014 and 2017, increasing from 9.4% to 19.5%.<\/li>\n<li>Additionally, deals valued between $10-25m increased in share over the four-year period, from 12.9% to 22.1%. Notable deals in this category from 2017 include a $17.5m deal to Simility, a provider of fraud prevention solutions, in a Series B round led by Accel Partners. Additionally, Dome9 Security, a cloud security specialist, raised $16.5m in a Series C round led by Softbank.<\/li>\n<\/ul>\n<h4><strong>There is increasing geographic diversity in RegTech investments<\/strong><\/h4>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-15779 size-full td-animation-stack-type0-2\" src=\"http:\/\/13.90.211.187\/wp-content\/uploads\/2018\/01\/4.-By-Region-1.png\" alt=\"\" width=\"677\" height=\"492\" \/><\/p>\n<ul>\n<li>In 2014, almost 70% of RegTech deals went to companies based in North America, whilst those in Europe represented a quarter of all deals.<\/li>\n<li>Over the period of 2014-2017, North America\u2019s share of RegTech deals decreased by 13%. This decrease was partially taken up by deals to Asian RegTech companies, which increased from 1% to 6.2% over the same period. All deals in Asia went to companies based in either Singapore, Hong Kong, China or India.<\/li>\n<li>Additionally, companies in \u2018Other\u2019 regions, including South America, Australasia and Africa, increased in deal share from 1% in 2014 to 7.2% in 2017. This highlights the spreading geographic range of the RegTech industry as it matures.<\/li>\n<\/ul>\n<p id=\"highlight\">Copyright \u00a9 2018 RegTech Analyst<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With nearly $0.5bn, the last quarter of 2017 accounted for 43.2% of the total amount invested in the whole year The RegTech industry saw $448m invested in Q4 2017 \u2013 more than double the value of the previous quarter, making it the strongest funding quarter to date. This surge is partially due to a rise&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/fintech.global\/globalpaytechsummit\/deal-makers\/\" class=\"gdlr-info-font excerpt-read-more\">Read More<\/a><\/p>\n","protected":false},"author":10,"featured_media":2626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/posts\/1"}],"collection":[{"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":0,"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/media\/2626"}],"wp:attachment":[{"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fintech.global\/globalpaytechsummit\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}