Key European RegTech investment stats in H1 2024:
- European RegTech investments halved in H1 YoY
- Investors diversify as eight countries represented in the top 10 European RegTech deals list
- Napier AI, a RegTech specialising in AI-powered financial crime and compliance solutions, secured the largest RegTech deal in Europe in H1 2024, with a funding round of $56.9m
In H1 2024, the European RegTech sector recorded 52 deals, marking a sharp decline of 76% compared to the 218 deals completed in H1 2023 and a 42% drop from the 89 deals in H2 2023. Total RegTech funding in H1 2024 amounted to $361.6m, representing a 53% decrease from the $771.3m raised in H1 2023 and a 29% drop from the $507.4m raised in H2 2023. This significant reduction in both deal volume and total funding highlights a growing cautiousness among investors, potentially driven by broader economic uncertainties and shifts in regulatory requirements that have slowed investment in the sector.
The top 10 deals in H1 2024 were spread across eight countries, with the United Kingdom maintaining its leadership with three top deals, unchanged from H1 2023. Germany and France each secured one top deal, continuing their presence in the top 10 from the previous period. However, notable shifts occurred as new players like Norway, Bulgaria, Luxembourg, Denmark, and Sweden entered the top 10 in H1 2024, replacing countries like the Netherlands, Czech Republic, and Belgium. This emerging diversification suggests a broadening of the European RegTech landscape, with more countries now actively contributing to significant deals, potentially reflecting the growing need for regulatory technologies across a wider range of markets.
Napier AI, a London-based RegTech specializing in AI-powered financial crime and compliance solutions, has secured a $56.9m of funding from Crestline Investors, marking it the largest RegTech deal in Europe for H1 2024. Known for its advanced anti-money laundering (AML) and know-your-customer (KYC) software, Napier AI’s platform, Napier Continuum, is trusted by over 150 institutions globally, transforming regulatory compliance into a strategic advantage. This new funding will accelerate Napier AI’s growth, allowing the company to expand its innovative solutions in the financial sector and further its mission of driving down financial crime through cutting-edge technology.
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