RegTech companies have raised over $16bn since 2014, across almost 1,000 transactions, giving an average deal size in the sector of $16.4m and nearly 70% of this funding was raised in the past seven quarters.
Investment has been in an uptrend over the past five years, growing almost five-fold between 2014 and 2018, as funding increased from $923.4m in 2014 to $4,484.5m last year.
More than $6.5bn has been invested in RegTech companies during the three quarters of 2019 across 223 deals, the strongest year for RegTech deal activity to date.
Of the more than $6.5bn that was invested in the first nine months 2019, almost $2.8bn was raised in Q3 2019, with 68 transactions completed during the quarter.
Verafin is a cloud-based cross-institutional software platform for fraud detection and management, serving more than 2,600 banks and credit unions. The Canadian RegTech company raised $387.8m in a private equity round led by Spectrum Equity and Information Venture Partners in September 2019, in order to aggressively pursue growth plans. This was the largest RegTech deal of Q3 2019.
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