Key RegTech investment stats in Q3 2024:
- US RegTech deal activity dropped by 40% in Q3 YoY
- California continues to dominate the US RegTech market space after it secured a third of all the deals in the region for Q3
- Vanta, a leading online security and compliance management platform, secured the largest RegTech deal in US for the quarter with a funding round of $150m
In Q3 2024, the US RegTech market experienced a notable decline in both funding and deal activity. The sector recorded 93 funding rounds, marking a 40% drop from the 155 deals completed in Q3 2023.
RegTech companies in the US raised $855m during Q3 2024, a significant 58% decrease from the $2.03bn raised in the same period last year.
This steep decline in both funding and deal volume reflects the broader challenges faced by the US RegTech sector, as economic uncertainty and investor caution have slowed down the pace of investments.
California remained the most active RegTech market in the US, with companies in the state completing 30 deals (32.26% share) in Q3 2024, a 33% decrease from the 45 deals closed in Q3 2023.
Notably, California’s share of total RegTech deal activity increased, underscoring its continuing influence in the sector despite fewer deals.
New York followed with 13 deals (13.98% share), down from 18 deals in Q3 2023, while Florida took the third spot with seven deals (7.53% share), replacing Massachusetts, which was the third most active state in Q3 2023 with 12 deals.
The dominance of California and New York in deal activity highlights the concentrated interest in these key markets, even as overall deal activity has slowed.
Vanta, a leading online security and compliance management platform, secured the largest US RegTech funding in Q3 2024 with a $150m investment led by Sequoia Capital, boosting its valuation to $2.45bn.
This strategic funding will enable Vanta to advance its AI-driven platform, pushing the boundaries of compliance automation while expanding into the UK and Australian markets.
With support from heavyweight backers like Goldman Sachs and JPMorgan Chase, this latest round brings Vanta’s total funding to $353m since its founding in 2018.
Serving over 8,000 clients, including companies like SmartRecruiters and ZoomInfo, Vanta’s platform accelerates compliance certification through process automation, replacing legacy compliance tools and positioning it as a pivotal player in the RegTech landscape.
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