Texas-Based NinjaOne Clinches Major US RegTech Deal Amidst 28% Funding Decline in 2024
In 2024, the landscape of US RegTech funding underwent significant shifts, highlighting both challenges and opportunities in the regulatory technology sector. This article explores the latest US RegTech investment statistics, shedding light on funding trends, significant deals, and the states leading the charge in this innovative field.
Overview of US RegTech Funding in 2024
The US RegTech sector experienced a notable 28% year-on-year decline in funding, totaling approximately $5 billion across 228 deals. This marks a significant drop from the $7 billion raised in 2023, alongside a 45% decrease in deal volume compared to the previous year’s 413 transactions.
Funding Trends
Despite the overall decline, the sector remains robust compared to 2020, when it raised only $4.4 billion from 389 deals. The average deal size in 2024 rose to $22 million, up from $16.9 million in 2023 and more than double the $11.3 million average recorded in 2020. This trend indicates a growing preference among investors for established RegTech companies over smaller startups, likely due to increasing regulatory complexities.
Leading States in RegTech Investments
California maintained its dominance in the US RegTech landscape, securing four of the top ten funding deals in both 2023 and 2024. Other states showing strong performances include:
- Washington: Increased from one top deal in 2023 to two in 2024.
- New York: Consistently held two top deals.
- Texas and Massachusetts: Continued to be featured in the rankings.
However, states like Colorado and Maryland saw a decline in investor interest, indicating a shift towards established markets such as California and New York, which align with broader FinTech trends.
Highlighting Major Deals in 2024
Among the significant transactions, NinjaOne, a Texas-based RegTech firm specializing in endpoint management, security, and compliance automation, achieved the largest deal of the year with a remarkable $231.5 million Series C funding round. This funding, led by ICONIQ Growth, valued the company at $1.9 billion.
NinjaOne’s innovative solutions are crafted to enhance regulatory compliance, mitigate risks, and improve IT governance, particularly in hybrid work environments. The company, originally focused on modernizing remote monitoring and management for Managed Service Providers (MSPs), has now expanded its platform to serve over 17,000 customers across 80 countries, managing more than seven million endpoints.
Future Directions
With this latest funding, NinjaOne aims to:
- Scale its platform and expand security capabilities.
- Reinforce its leadership position in the regulatory technology sector.
- Assist organizations in effectively managing compliance risks while enhancing IT resilience.
As the US RegTech sector continues to evolve, businesses and investors alike are keeping a close eye on these trends and developments. For more information on the future of regulatory technology, visit McKinsey’s insights.
