Global RegTech investment grew almost five-fold between 2014 and 2018. An increase of 48.5% CAGR, in terms of capital invested, has seen funding grow from $923.4m in 2014 to $4,484.5m in 2018.
Funding doubled between 2014 and 2017, before jumping to just under $4.5bn in 2018. Deal activity has been in an upward trend between 2014 and 2018, with 844 deals completed during the period. Annual deal activity has remained above 120 since 2014, reaching 164 transactions in 2018.
Funding in 2018 was bolstered by large transactions with SenseTime, a facial recognition solution provider, raising over $2.2bn across three deals. When we exclude the $2.6bn that SenseTime raised across 2017 and 2018, global RegTech funding still grew from $1,467.6m to $2,264.5m during the period. This increase was partly due to there being as many as 11 transactions valued above $50m in 2018.
Exiger, a New York-based provider of financial crime compliance and risk management solutions, raised $80m of Series A funding from Carrick Capital Partners in Q3 2018. This was one of the largest deals of the year and will enable Exiger to accelerate its growth by continuing to build out and acquire differentiated technology and technology-enabled solutions.
Checkr, a San Francisco-based automated background checking solution provider, raised a $100m Series C round led by T. Rowe Price, which was one of the largest transactions in 2018 outside of SenseTime’s funding rounds.
Copyright © 2018 RegTech Analyst
