Regulatory Technology Sector Overview – Q3 2019 Update

In this post we examine the different components of the regulatory technology (regtech) ecosystem. We will illustrate what the categories of innovation are and how they compare to one another.

Identity Compliance Is The Largest Regulatory Technology Category

Let’s start off by looking at the Sector Map. There are 601 regtech startups across 10 categories through Q3 2019. They have cumulatively raised $15B. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies within the category.

We see that Identity Compliance is the largest category with 125 companies. These companies help businesses comply with regulations on identity-related crimes such as payment fraud and account takeover. Some example companies include NetGuardians, Finomial, DueDil, and Feedzai.

Introducing the Regulatory Technology Category Funding Rank Chart

Now let’s look at the Category Funding Rank Chart. This graph illustrates how the relative category funding ranks have evolved over time. Please note that a category’s ranking in each year indicates its relative placement based on the funding made into that category in that year only, without including any cumulative funding from the previous years.

As you can see, while some categories have maintained relatively stable funding ranks, others have shifted around considerably. This chart gives a sense of where the dollars are flowing within the regtech ecosystem over the past few years.

Visit our report overview page to learn more about our full Regulatory Technology coverage.