FOR IMMEDIATE RELEASE
London is set to lead a dramatic growth in the regulatory technology (“RegTech”) industry, according to new research from FinTech Global (www.fintech.global), a specialist data and intelligence firm.
Key findings of the research are as follows:
• RegTech investments have more than tripled over the last five years.
• London has established itself as the global leader in RegTech deals.
• Growth is being driven by an increase in investments in anti-fraud companies.
REGTECH INVESTMENTS INCREASE BY 3.5X
Over the last five years, investments in RegTech companies have grown by 38.5% (CAGR). Last year a record $678m was invested in 70 companies, compared to $185m in 32 companies in 2012. Q1 was a record quarter in terms of deals completed (21) whilst Q3 was a record in terms of volume ($305m).
LONDON LEADS OTHER CITIES
London takes the top spot for the city with the most RegTech deals with 39 investments between 2012 and 2016. The next six locations in the city rankings are based in North America. Dublin and Paris are the only other European cities to appear in the top ten.
The largest six RegTech deals in London last year raised over $65m from some of Europe’s leading venture capital firms. For example, Onfido raised a $25m round led by Idinvest Partners, which was the largest deal in the sector in London last year, followed by Featurespace, which raised $9m from TTV Capital, and ComplyAdvantage, which was backed by Balderton Capital with $8.2m.
Although the industry is seeing an increase in larger investments, the majority of RegTech deals financed in London are early-stage. Accelerators have had a key role to play in the development of the sector. In fact, three of the top ten most active RegTech investors worldwide (in terms of numbers of deals) are based in London: Techstars, Wayra and StartupBootcamp have made 21 London-based RegTech investments between them, averaging $70k per investment.
MORE INVESTMENTS IN ANTI-FRAUD COMPANIES
Backing for anti-fraud companies has overtaken compliance-focused companies over the last year. Investments in companies in the anti-fraud sector have jumped from $82.2m in 2014 to $334.8m in 2016. As a subsector of RegTech, it has increased from 14.1% of all investments to 49.4% in 2016.
END OF PRESS RELEASE
The data for this research comes from the Fintech Global database, which provides up-to-the minute intelligence and analytics on trends, deals and companies across all FinTech sectors around the world. For more details from the report and from the interviews conducted with RegTech investors and innovators, visit www.fintech.global
Tel: 07508 010 940
FinTech.Global offers the most comprehensive data, the most valuable insights and the most powerful analytical tools available for the global FinTech industry. We work with market leaders in the Fintech industry – investors, advisors, innovative companies and financial institutions – and enable them to get the essential intelligence they need to make superior business decisions.
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