• Overall, there were 20 RegTech seed deals announced by European companies in Q4 2022. The UK was the most active country with five deals in total, a 25% share of total deals. Germany and Switzerland were the joint second most active countries with three deals each.
• Of the companies listed, Cybersecurity companies accounted for the most at four, followed by compliance monitoring solutions at three. This clearly shows that securing companies is a top concern for executives and VCs are continuing to back disruptive technologies in the security sector. Compliance systems also saw a lot of attention from VCs in Q4 2022. This is no surprise as companies such as Coinbase have had issues staying compliant settling with a NY regulator for $100m in Jan 2023. Regulators cracking down on compliance will likely drive increased adoption of compliance solutions going forward.
• Worldr, which offer privacy, security and compliance for your existing communications, was the largest RegTech seed deal in Q4 2022 raising $11.2m in their seed round led by Molten Ventures. The fresh capital will allow Worldr to open a new office in New York and grow its presence in the Middle East. Max Buchan, CEO of Worldr said “Data sovereignty has never been more important. The increase in cyberattacks, data localisation requirements, and scrutiny from regulators mean that it is no longer enough to blindly trust that collaboration platforms are keeping business communications secure and compliant.” This is also backed by recent events. In December 2022 JPMorgan was hit with $200 million in fines for letting employees use WhatsApp to evade regulators’ reach.
The data for this research was taken from the RegTech Analyst database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of RegTech Analyst. ©2023 RegTech Analyst
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