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Why Most RegTechs Fail (How to Build One That Wins)

Most RegTech startups don’t fail because their product doesn’t work. They fail because they lack the information and structure needed to go to market with clarity.

In 2025, for every type of RegTech, there are at least 20 competitors globally. Without a proper strategy, the odds are against you.

The default playbook is always the same: launch a site, run some ads, publish a few articles, start outbound. Then wait.

Twelve months later, founders are shocked to find that fewer than 10% of their meetings converted. The few that closed required compromise, discounting or vague promises to secure.

The problem isn’t ambition. It’s lack of proper market understanding and credibility. Building trust early on is more important than making noise for the sake of it. Strategy matters more than speed. The market is cautious of opportunistic vendors who don’t last more than 2 years. The competition is entrenched, and the cost of getting it wrong is fatal.

At Aventine Lab, we don’t do launches. We run campaigns. Phased, strategic, and grounded in real-world market conditions

The problem with RegTechs
The problem with RegTechs

A Go-to-Market Philosophy Built for RegTech

Everything we do is shaped by these principles:

  1. Start with intelligence and the problem
  2. Build trust before attention
  3. Avoid resistance, find gaps
  4. Concentrate effort
  5. Partner where possible
  6. Fix the internal engine
  7. Build a Lead Engine That Scales Without You

We don’t just advise on it. We build and run the system with you; content, positioning, product, partnerships, commercial structure, and revenue operations.

Aventine Lab Solution
Aventine Lab Solution

1. Intelligence and Problem Discovery

There is no space for hope or luck in RegTech. Preparation breeds success. If you don’t fully understand the landscape, your competitors, or the workflow you’re solving for, you’ve already lost.

That’s why we begin with discovery:

  • Competitive and market mapping
  • Product–market fit validation
  • ICP, tone and message testing
  • Commercial model and audit
  • Internal alignment between product, sales and compliance

Your product team cannot build in isolation. If they don’t understand how a compliance officer actually work, or what expectations law firms have for onboarding and UX, then you will not have product market fit.

Aventine Lab Consulting
Aventine Lab Consulting

2. Visibility Before Outreach

In regulated markets, buyers don’t respond to cold emails or sales decks until they trust who’s sending them.

This is why Aventine campaigns focus first on visibility and credibility. We publish founder interviews, compliance-focused webinars, demo sessions, and topical research. These aren’t vanity assets. We want to help you showcase what you do to the market, so they can make a well informed decision.

Aventine Lab Insights & Contents
Aventine Lab Insights Contents

For early-stage founders, this kind of content does three things:

  • It earns attention before you ask for it
  • It builds reputation with regulators, partners, and buyers
  • It provides all professionals with materials needed to conduct due diligence on your company, product and origin story.

You can’t buy trust in these markets. You have to earn it through transparency and well thought out content strategy. We help you do that with real content, not noise.

3. Don’t Fight on the Strongest Front

One of the most common early-stage mistakes is targeting the most obvious accounts first.

The big banks. The well-known magic or silver circle law firm. The big 6 figure contracts.

This is equivalent to the chasing the dragon in our market and pure wishful thinking. Putting aside security concerns. These buyers are locked into legacy tools, long procurement cycles, and pre-existing vendor relationships. You won’t win there first.

We help founders identify the quiet gaps. We’ll help you find good fishing spots with little to no competition and easier buying cycles.

You have to identify a niche and make dominate it. After that you can scale.

4. Focus Beats Coverage

RegTech founders often think they need to expand in order to grow. New markets, industries or products.

Instead of focusing on one or two key jurisdictions, or improving their UX/UI. They want to run before they can crawl.

This is again, another mistake that results into operational inefficiencies and low conversion rates. If you have a good product market fit and less than 20 clients, you should not be thinking about other countries or industries, you have to secure your home base and perfect the key workflow before adding new products or looking at other markets. They will stretch you thin and you will lose money and time.

Precision and focus always win. Just ask Xapien.

focusedstrategy
Focused strategy

5. Partners Multiply Reach

You don’t need to sell and build the credibility from 0 to 100 all by yourself. You can gain visibility and build trust by leveraging the already existing trust your partners have with your prospects.

We help RegTech companies identify and activate the right allies. That could be:

  • Integrating into a core banking provider
  • Co-marketing with a compliance consultancy
  • Partnering with a data vendor who already sells into your accounts

These alliances don’t just unlock access. They remove friction and borrow trust.

In our campaigns, we structure and negotiate these partnerships, then build supporting materials like joint whitepapers, webinars or reports to amplify the signal.

Partnerships
Partnerships

6. Your Internal Systems Are Part of Your GTM

Many RegTech companies lose deals not at the top of the funnel, but in the middle.

Aventine Lab audits the full GTM system, including:

  • Lead qualification
  • Sales enablement assets
  • Legal review process
  • Onboarding flows
  • Pricing structure

We’ve helped teams close deals faster by implementing ready-to-sign MSA templates, objection handling scripts, and security briefings tailored for regulated buyers.

If your internal machine isn’t built with a lead generation engine in mind, no amount of marketing will save you.

RevOps Aventine Lab
RevOps Aventine Lab

7. Build a Lead Engine That Scales Without You

Founders can often land the first few clients through personal outreach, investor referrals or chance introductions. That may work at the start, but it does not scale. In RegTech, where sales cycles are long and buyers are cautious, you need a lead generation engine that works consistently, with or without founder involvement.

Aventine Lab designs lead systems that are structured and sustainable. These are not list-based email blasts or SEO guesswork. We create aligned campaigns that connect your positioning, content, partnerships and commercial systems.

Aventine Lab's lead generation engine
Aventine Labs lead generation engine

This includes:

  • Defining target roles and segments with buying urgency
  • Designing lead capture content tied to compliance pain points
  • Connecting outbound and inbound efforts through shared messaging
  • Setting up tracking and scoring so good leads get prioritised

We are not trying to maximise volume. We optimise for fit and conversion. In regulated markets, five high-quality leads are worth more than fifty generic downloads.

For one client, we replaced a generalist outbound process with a lead engine built around demo webinars, integration partnerships and regulatory reports. Lead volume fell, but qualified pipeline and close rate both rose. That is the outcome that matters.

Final word

There is no shortage of RegTech solutions. But very few companies have a structured path to enter, earn trust, and scale with efficiency.

That is what we help build.

Aventine Lab RegTech Directory & Insights
Aventine Lab RegTech Directory Insights

Aventine Lab works side-by-side with founders to design and execute full-funnel GTM campaigns:

  • Strategic discovery
  • Brand positioning
  • Commercial operations
  • Partner development
  • Authority-building content
  • Internal process and RevOps design
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author avatar
Arsalan Abbasi Founder
LegalTech & RegTech Expert

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