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20 RegTech Startups On The Rise In 2023

by Josh Howarth
July 3, 2023

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It’s tough to avoid thousands of regulatory landmines on top of running day-to-day business operations.

From circumventing potential risks to detecting fraud, there are a lot of things to stay on top of.

With the help of regulatory technology solutions, it’s possible to improve, streamline, and automate regulatory processes.

The relatively young RegTech market is on track to reach a jaw-dropping valuation of $19.5 billion by 2026.

As more companies continue to enter this massive space, the industry is projected to reach $21.73 billion by 2027.

In this article, we’ve rounded up some of the hottest RegTech startups that are contributing to the significant growth in this sector.

1. Chainalysis

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5-year search growth: 238%

Search growth status: Exploding

Year founded: 2014

Location: New York, NY

Funding: $536.6M (Series F)

What they do: Chainalysis is an anti-money laundering (AML) and risk detection solutions provider for blockchains. They offer their cryptocurrency compliance products to crypto companies, financial institutions, and agencies. From KYT (know your transactions) to virtual investigation (crypto forensics), the startup offers a range of solutions. Chainalysis has a global reach, with customers spread across 60+ countries.

2. PaymentWorks

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5-year search growth: 9424%

Search growth status: Exploding

Year founded: 2013

Location: Waltham, MA

Funding: $20.2M (Series Unknown)

What they do: A cybersecurity company, PaymentWorks offers fraud detection software for B2B payments. The platform is mainly designed to help automate some of the manual work associated with verifying payee and payer details. This can help reduce costs, avoid risks, and stay compliant. PaymentWorks recently increased its enterprise customer base by 80%. It also reported a 200% rise in revenue.

3. Quantexa

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5-year search growth: 153%

Search growth status: Regular

Year founded: 2016

Location: London, UK

Funding: $370M (Series E)

What they do: Quantexa helps enterprises with different regulatory compliance domains, including AML, KYC, credit risk, and more. They do this by providing a platform for streamlined data analytics, which, in turn, can potentially help customers make contextual decisions. So far, Quantexa’s solutions have been deployed across more than 70 countries. Their products are specifically catered to banking, insurance, and government organizations.

4. FundApps

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5-year search growth: 33%

Search growth status: Regular

Year founded: 2010

Location: London, England

Funding: Undisclosed (Private Equity)

What they do: FundApps is a UK-based regtech startup that provides software solutions for financial compliance management to asset managers and other financial institutions. Their cloud-based platform automates the regulatory compliance process by monitoring regulatory changes, analyzing data, and providing reports to help clients ensure compliance. Founded in 2010, FundApps has grown rapidly and now serves hundreds of clients in over 40 countries.

5. Ascent

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5-year search growth: 25%

Search growth status: Regular

Year founded: 2015

Location: Chicago, IL

Funding: $29.4M (Series B)

What they do: Ascent offers cloud-based regulatory compliance software for financial businesses, banks, law firms, and asset management companies. The platform enables users to track internal activities and automate the process of figuring out the legal obligations for their business. It’s estimated that Ascent earns up to $25M in annual revenue.

6. ClauseMatch

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5-year search growth: 300%

Search growth status: Peaked

Year founded: 2012

Location: London, UK

Funding: $21.1M (Series Unknown)

What they do: A SaaS startup, ClauseMatch is closing a major gap in regulatory compliance tech – smart document management. Through centralized, automated policy and regulatory change solutions, ClauseMatch can help its users take the busy work out of compliance document management. The platform’s features include an online editor, a regulatory portal, AI-enabled content mapping, and more. ClauseMatch has an impressive clientele, with names like Barclays, Cincinnati Financial Corporation, and Revolut.

7. Trunomi

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5-year search growth: 0%

Search growth status: Peaked

Year founded: 2015

Location: London, UK

Funding: $16.3M (Seed)

What they do: Trunomi is a RegTech platform that helps enterprises stay compliant with international regulations concerning data privacy. The company claims that businesses can start protecting themselves from non-compliance in under 2 hours with their solutions. Trunomi’s platform has been designed to help companies understand their data, know the regulations that apply to them, and visualize and map customer data. The startup recently hit $1.5M in annual revenue.

8. Mindbridge AI

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5-year search growth: -100%

Search growth status: Peaked

Year founded: 2016

Location: Ottawa, Canada

Funding: $42.3M (Series B)

What they do: A FinTech startup, Mindbridge AI offers tools for auditing and analyzing financial data. Their AI-powered solutions are specifically designed for financial institutions, government agencies, auditing firms, and enterprises. According to their website, Mindbridge AI’s data analysis and auditing products are being used by more than 20,000 financial analysts and auditors across the world. The company also made it to the annual Forbes AI 50 list in 2021.

9. 6clicks

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5-year search growth: 100%

Search growth status: Regular

Year founded: 2019

Location: Melbourne, Australia

Funding: $15.3M (Series A)

What they do: A risk and compliance management operating system, 6clicks offers a platform designed to tackle different compliance-related problems. Enterprises can use 6click’s assortment of tools to conduct audits, manage policies, automate risk management, and more. On their website, the startup claims that their AI-enabled compliance engine can improve the efficiency of compliance mapping by 14X.

10. CyberGRX

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5-year search growth: 50%

Search growth status: Peaked

Year founded: 2015

Location: Denver, CO

Funding: $99M (Series D)

What they do: CyberGRX is a cybersecurity startup for enterprises that helps organizations steer clear of third-party risks. It’s a risk management software designed to help enterprises identify, prioritize, assess, and reduce potential cyber risks. CyberGRX was named the best tech startup by The Tech Tribune and one of the best places to work at by Built in Colorado.

11. ThetaRay

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5-year search growth: -41%

Search growth status: Peaked

Year founded: 2013

Location: Hod Hasharon, Israel

Funding: $112.5M (Series C)

What they do: A threat detection platform, ThetaRay uses automated big data analytics for the finance industry. Their primary offering includes a platform for AML risk management (focused on correspondent banking). They also have a solution to analyze risks associated with cross-border payments. The startup claims that its products can result in a 90% reduction in alerts and a 50% increase in revenue.

12. DataVisor

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5-year search growth: 25%

Search growth status: Peaked

Year founded: 2013

Location: Mountain View, CA

Funding: $94.5M (Series Unknown)

What they do: DataVisor offers a RegTech platform that uses unsupervised machine learning for risk management. It is designed for the financial, retail, travel, and shipping verticals. DataVisor’s solutions can potentially help protect their customers from digital attacks, fraud, and other online threats. They do this through a robust risk management platform (dOps), combined with a fraud detection system (dVector) and a fraud management platform (dCube). DataVisor was named in the 2020 Gartner Cool Vendor list under the “Identity and Access Management and Fraud Detection” category.

13. Apiax

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5-year search growth: 350%

Search growth status: Exploding

Year founded: 2017

Location: Zurich, Switzerland

Funding: $8.1M (Series Unknown)

What they do: A compliance management platform, Apiax offers digital regulatory solutions for finance companies. It works by sourcing and combining crucial regulatory knowledge into a single platform. Customers can use their built-in apps to process that data, create compliance checklists, and understand regulations for cross-border payments. In 2019, the Swiss RegTech startup raised $6.6 million in funding and expanded its operations to Singapore. The funding round was led by e.ventures and XAnge.

14. Evari

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5-year search growth: 58%

Search growth status: Regular

Year founded: 2016

Location: London, England

Funding: Undisclosed

What they do: Evari is a regulatory technology startup that specializes in helping small and medium-sized enterprises navigate complex compliance requirements. Its cloud-based platform offers a suite of solutions for Anti-Money Laundering, Counter-Terrorist Financing, and Know-Your-Customer compliance. By leveraging machine learning and natural language processing, Evari streamlines compliance workflows and automates risk assessments, saving SMEs time and money while reducing their regulatory risk.

15. Hawk:AI

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5-year search growth: 300%

Search growth status: Regular

Year founded: 2018

Location: Munich, Germany

Funding: $27M (Series B)

What they do: A real-time transaction monitoring platform, Hawk:AI helps finance companies detect and avoid criminal activities (fraud and money laundering). In a nutshell, their core product is designed to help their customers improve their financial compliance processes. Hawk:AI earns around $99.9K in monthly revenue (or about $1.2M ARR).

16. Corlytics

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5-year search growth: -100%

Search growth status: Peaked

Year founded: 2013

Location: Dublin, Ireland

Funding: $26.2M (Series Unknown)

What they do: Corlytics is a provider of regulatory risk intelligence solutions. Their platform is designed to help businesses stay up-to-date with the latest regulatory compliance changes. For this purpose, they offer a regulation library, an analytics tool, and a regulation monitoring platform. In 2018, Corlytics won the MEDICI Top 21 RegTech award. They were also one of the startups awarded the Disruptive Technologies Innovation Fund by the Irish government in 2019.

17. ComplyAdvantage

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5-year search growth: 190%

Search growth status: Regular

Year founded: 2014

Location: London, UK

Funding: $108.2M (Series C)

What they do: ComplyAdvantage is a London-based FinTech startup that offers AML compliance solutions to financial institutions. From customer screening and monitoring to media insights, the platform offers solutions designed to help finance companies stay compliant. The startup has scaled to over 200 employees who work together to serve over 500 customers.

18. Behavox

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5-year search growth: -56%

Search growth status: Peaked

Year founded: 2014

Location: London, UK

Funding: $121.4M (Series Unknown)

What they do: An award-winning company, Behavox offers a collection of risk and compliance-related solutions for enterprises. They employ artificial intelligence and machine learning to help identify internal threats, problematic employee behavior, and market misconduct. They also offer a platform for archiving organizational data in one place. Forbes named Behavox as one of the most innovative fintech companies in 2021.

19. NorthRow

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5-year search growth: 0%

Search growth status: Peaked

Year founded: 2010

Location: Abingdon, UK

Funding: $6.7M (Convertible Note)

What they do: NorthRow enables companies in the finance, payments, hospitality, and property/real-estate verticals with their AML compliance programs. The startup’s key investors include Maven Capital Partners, Angel CoFund, and Mercia Asset Management, among others. With NorthRow’s platform, businesses can not only manage a compliant customer onboarding experience but also monitor regulatory risks and manage customer remediation.

20. Tessian

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5-year search growth: 30%

Search growth status: Peaked

Year founded: 2013

Location: London, UK

Funding: $132.6M (Series C)

What they do: Tessian helps businesses reduce compliance risks associated with potential human error on email. Their “human layer security” platform is designed to avoid phishing attacks, accidental data leakages, and other compromises. Leading enterprises like Evercore, Hill Dickinson, and Gubra use Tessian’s platform to streamline their email compliance processes.

Conclusion

That wraps up our list of the rising regulatory technology startups to follow in 2023.

These ventures are helping businesses navigate the tricky waters of regulatory compliance with cutting-edge tech like artificial intelligence and machine learning.

As globalization continues, the need for smart compliance solutions will only increase.

This indicates that the RegTech market has a lucrative future ahead.