How has the exit activity for regulatory technology developed in the first half of 2019? This blog post explores regtech exit metrics through Q2 2019 and compares them to previous years. The graph below shows the number of regtech exits by year, stacked by quarters.
As the graphic demonstrates, regtech has seen a total of 15 exit events through Q2 of this year. This represents 79% of the total exits in 2018, and 214% of the exits through Q2 in 2018. Some of the exit events in Q2 2019 include Kyriba’s acquisition by Bridgeport Capital, Cognigo’s acquisition by NetApp, and Tufin’s IPO.
A straight-line projection of the completed exit activity this year would come out to 30 exit events, which exceeds the total exits in 2018 by 58%. By the same token, a weighted quarterly average projection of 2019 exit activity would come out to 41 exit events, which surpasses the total exits in 2018 by a whopping 114%. Therefore, based on the mid-year data, regtech exit activity in 2019 is projected to be dramatically higher than the exit activity in 2018.