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RegTech firm SteelEye raises $21m in Series B funding round

Compliance costs and complexity are driving the demand for RegTech solutions.

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Compliance and technology analytics firm has announced the completion of a $21m Series B fundraising round as it looks to accelerate its expansion in the U.S. 

The funding round was led by Ten Coves Capital with Fidelity Strategic Ventures, Illuminate Financial, and Beacon Equity Partners taking part. With funding concluded, SteelEye's total capital raised to date sits at $43m.

Steve Piaker, managing partner at Ten Coves Capital has said that SteelEye delivers a "differentiated approach", with the firm's capabilities to "separate out the noise" amid a flood of data hampering financial services firms. 

Headquartered in London, SteelEye provided a sales-as-a-service (SaaS) RegTech platform that allows banks, brokers and asset managers to remain compliant across various jurisdictions including the EU, UK and US markets. 

The capital garnered will be used to support SteelEye's global expansion, with a particular emphasis on growing its business in North America. 

"Facing regulatory clampdowns, huge data volumes and inflation impacts on budgets, financial firms need ways to reduce costs through efficiencies and automation," says Matt Smith, the chief executive officer at SteelEye said in a statement.  

According to SteelEye's statement, over $1bn in fines have been issued to tier one banks in the last nine months. A changing operational environment in a post-Covid era has made regulatory compliance more complex and costly. 

Smith adds: "We are delighted to partner with the team at Ten Cove Capital who has a long history of enabling technology businesses to scale and deliver real value to the financial services industry."

SteelEye's clients include Fidelity International and Schroders, with the firm recording 88 per cent growth in 2021. 

The $21m raised marks the largest RegTech raise by a European firm in 2022. 

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