Almost $1.3bn was raised in the top 10 global RegTech deals of Q2 2019, with nine of the 10 companies in the list based in the United States. This dominance has been somewhat consistent, with US companies claiming eight of the top 10 deals last quarter and eight in Q2 2018, with more than 60% of the total capital raised in the sector since 2014 going to US-based RegTech companies.
Although limited geographic diversity among companies in the list, there was some subsector diversity with five cybersecurity solutions providers (KnowBe4, SentinelOne, Sumo Logic, Vectra AI and BlueVoyant), three Identification/Background Checks companies (Dashlane, Auth0 and MX Technologies), Communications Monitoring solution provider; Symphony, and Risk Management solution provider Tongdun Technology.
KnowBe4, a Florida-based provider of security awareness training and simulated phishing attacks, raised $300m in a Series D round from KKR, TenEleven Ventures and Elephant in June 2019. This was the largest RegTech deal of the quarter, and KnowBe4 now serves more than 25,000 organisations and has over $100 million of annual recurring revenue.
Tongdun Technology provides risk control and anti-fraud solutions for fraud management applications in financial services, leveraging AI and big data analytics. The Hangzhou-based RegTech company raised a $100m Series D round in April 2019 from China Merchants Capital, China Everbright Limited, GGV Capital, Cinda Sinorock Capital and Guotai Asset Management, and was the only company not based in the US to be listed in the top 10 deals list of Q2 2019.
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