SteelEye, a regulatory technology (RegTech) provider for the financial services industry, has raised $21m in Series B funding round.

Ten Coves Capital led the round, which saw participation from returning investors Fidelity International Strategic Ventures, Illuminate Financial, Beacon Equity Partners, and a large family office.

The latest funding, which takes SteelEye’s total funding to $43m, will be used to fund international expansion particularly in North American markets.

Headquartered in London, SteelEye provides compliance and analytics solutions to banks, brokers and other regulated financial entities.

The company also has offices in New York, Bengaluru (India), and Braga (Portugal).

The regulatory pressure, dynamic post-COVID operational environment and growing data volumes have increased the complexity and cost of compliance.

SteelEye noted that in the last nine months, regulators imposed a combined fine of more than $1bn on global tier one banks, which in turn led to an increase in demand for RegTech solutions.

Ten Coves Capital managing partner Steve Piaker said: “SteelEye has a highly differentiated approach and has demonstrated strong momentum and growth.

“Financial services firms are drowning in data and SteelEye delivers a modern unified data capture and analytics solution at scale tuned to more accurately and efficiently separate out the noise from actionable investigations.”

SteelEye Americas president Brian Lynch said: “US demand for RegTech solutions that enable financial firms to navigate the expanding regulatory landscape is at an all-time high and projected to grow.

“Recent fines levied on tier one banks for e-communications breaches further highlight the increased regulatory pressures driving demand.”