As we progress through Q1 of 2019, let's look back on 2018 and analyze how funding in the regulatory technology (regtech) sector compares to previous years. The graphic below shows the total annual regtech funding amounts over time.
As the graphic demonstrates, 2018 was a record year for regtech funding at over $2B. It represents a 6% increase from the previous year’s funding. In addition, regtech funding grew at a CAGR of 42% over the past 5 years. Some of the largest funding events in 2018 include a $250M round for Cohesity, a $169M round for Netskope, and a $100M round for Assent Compliance.
The regulatory technology (regtech) industry has seen $10B in total all time funding. Let's now examine the investors financing the regtech sector and identify the most active firms.
The graphic below highlights regtech investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.
As the graphic demonstrates, New Enterprise Associates has made the most investments in the regtech sector with 21 investments. Lightspeed Venture Partners and Accel follow with 20 investments each. Examples of companies that New Enterprise Associates has invested in include Forter, Fugue, DataVisor, and Tigera.
Here is our Q4 2018 summary report on the regulatory technology startup sector. The following report includes a sector overview and recent activity.
As we’ve previously observed, regulatory technology (regtech) funding is on an upward trend in recent years. If we look closer at the category level, we notice two key takeaways:
- The Financial Crime and Identity Compliance category leads the sector in Q3 funding
- The Network Security Compliance category leads the sector in all-time funding
We’ll highlight these observations with some graphics and discussions below.
The Financial Crime and Identity Compliance Category Leads Regtech Q3 Funding
To start off, let’s review the amount of funding raised this quarter by each category within regulatory technology.
The above graphic highlights that the Financial Crime and Identity Compliance category leads the sector in Q3 funding with almost $90M. The Governance, Risk, and Compliance category follows in a close second with $83M in Q3 funding.
Financial Crime and Identity Compliance companies help financial institutions comply with regulations on identity related crimes....
Here is our Q3 2018 summary report on the regulatory technology startup sector. The following report includes a sector overview and recent activity.
To learn more about our complete regulatory technology report and research platform, visit us at www.venturescanner.com or contact [email protected].
We are excited to announce the launch of our regulatory technology (regtech) coverage!
Regtech companies help businesses automate or streamline activities around regulatory compliance. Examples include compliance for business operations, financial services, health services, and manufacturing.
This post will introduce and define the different categories that make up the regtech sector.
The definitions of the regtech categories are as follows:
Business Regulation Compliance: Companies that help businesses comply with regulations affecting their operations. Examples include compliance for HR training, equity compensation, marketing, and document management.
Compliance Tracking and Reporting: Companies that help businesses track current, changing, and emerging regulations, as well as create reports according to those regulations. Examples include regulation databases and the sending of reports to the appropriate government agencies.
Data and Privacy Compliance: Companies that...