RegTech companies in Europe have raised more than $2.2bn across 269 transactions between 2015 and 2019, with 40.5% of this capital coming from deals valued at $50m or over. Europe remains the second most important region for RegTech investment behind North America, being home to two of the top 10 financial centres globally; London and Frankfurt.
Investment grew at a CAGR of 66.7% between 2015 and 2019 to a record of nearly $1.3bn. The record capital raised in 2019 is more than double the total funding raised between 2015 and 2018. This record investment has been driven by deals completed in Q3 2019 which account for 45.6% of funding raised in the whole year, marking the strongest quarter for European RegTech to date. Signavio, which provides companies with a solution to transform financial regulations into understandable and actionable models, raised $177m in a Series C in Q3 2019, the largest RegTech funding round in Europe of the period.
As the RegTech sector in Europe continues to mature investors look to back more later-stage transactions, hence average deal size in the region has increased over four-fold from just $4.3m in 2015 to $17.3m in 2019. Deal activity in the region has also been increasing year-on-year to a record of 75 deals completed in 2019.
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