Europe has been the second most important region for RegTech after North America, in terms of investment flows, with the continent home to two key financial centres; London and Frankfurt.
More than $2.1bn has been invested in RegTech companies in Europe, across 284 deals, with more than half of this capital raised in the first three quarters of 2019 alone.
The sector in Europe has continued to mature, evidence by the average deal size increasing from $2.1m in 2014 to $18.7m in the first nine months of 2019.
Investment in Europe reached almost $1.1bn between Q1 and Q3 2019, across 58 deals, setting a record for RegTech funding in Europe. This growth was driven by larger transactions in Q3, with five deals valued above $50m taking place last quarter, compared to two in Q2 2019 and just one in Q1 2019.
Business process automation, risk and compliance solutions provider Signavio, raised $177m in a Series C round led by Apax Digital in July 2019. This was the largest RegTech deal in Europe last quarter and values the Berlin-based RegTech company at $400m.
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