Rising Stars: You should know these four Regtechs

In international comparison, Germany is doing badly in international comparison – only Spain, Slovakia, Poland and the Czech Republic are even worse off, according to the current country index of the family business Foundation. Compared to 2022, Germany even fell back by two places. The high regulatory pressure presents companies with great challenges, but also offers space for technological innovation.

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Regulatory Technology starts here: They develop solutions that support companies – especially in the financial sector – efficiently. Nevertheless, Regtechs have so far been underrepresented in the FinTech market, says Taxdoo founder and Regtech investor Roger Gothmann. In an interview with the start-up scene, he reveals why the Regtech market is interesting, which trends he currently pursues and which four European Regtechs has on the radar.

Why is the Regtech market so interesting?

Despite many global uncertainties, there is a development that is clear: regulation is constantly increasing. At the same time, many companies lack human resources to deal with increasing requirements, says Gothmann. “With the help of technologies, especially with a generative AI, we can really pry the human regulatory resources that are currently shrinking due to demographic effects,” he explains. The increasing demand makes the Regtech market so interesting.

In addition, according to Gothmann, RegTech startups have a decisive advantage over other tech startups: their products are difficult to imitate as soon as they are on the market. Because they are based on comprehensive specialist knowledge, such as the entire EU sales tax law, which forms the basis for all decision-making channels in a tax app. A semi -finished product is not enough here. Regetechs have to work completely from the start. “In the tax software world, there is either only right or wrong. There is no 80/20 solution that works,” says Gothmann.

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