Global VC, PE, and M&A investment activity in regtech 2019-2023
In 2023, the total value and number of venture capital, private equity, and M&A investments in the regtech sector worldwide dropped sharply. The value of investments dropped to 2.6 billion U.S. dollars, the lowest in the observed period. The number of deals fell sharply as well, dropping to 239 deals. This was a surprising turn in the investment activity, considering that in 2022, regtech was one of the very few fintech segments where fintech activity increased.
What is regtech?
Regtech (regulatory technology) is the management of regulatory processes within the financial industry through technology. The primary functions of regtech include regulatory monitoring, reporting, and compliance.