Formalize secures EUR €30 million to boost European compliance tech
Formalize has secured EUR €30 million in a Series B funding round to support its efforts in streamlining compliance operations for European small- and medium-sized companies.
The funding round was co-led by Acton Capital of Germany and Blackfin Tech of France, with further participation from CIBC Innovation Banking and West Hill Capital. The newly raised capital will be allocated to accelerating Formalize's expansion in Europe, with a particular focus on strengthening its presence in key markets such as the DACH region and France through new offices and expanded local teams.
Complex regulatory landscape
As regulatory demands across Europe intensify, many companies face increased requirements regarding data protection, cybersecurity, and compliance with reporting standards such as the GDPR, NIS2, DORA, and ISO 27001. Formalize provides a central platform that automates compliance workflows and consolidates regulatory requirements, aiming to help organisations anticipate and address regulatory changes efficiently.
Jakob Lilholm, Chief Executive Officer and co-founder of Formalize, commented on the importance of compliance in today's climate:
"Compliance is no longer optional; it's essential for doing business. At Formalize, we're building a future where automation and AI simplify GRC for European SMBs without ever compromising on security or the local expertise that defines us. Our ability to scale and deliver value to thousands of companies places us at the forefront of Europe's regulatory landscape."
Since its founding, Formalize has expanded its platform to serve over 8,000 organisations, including more than 850 consultancies and law firms. In Spain, the company has been selected as the national whistleblowing authority, providing a secure reporting channel to millions of employees.
Investment in growth
The company's earlier Series A funding in 2024 contributed to its expansion and the development of its product offering. The current Series B capital will support the next phase of its growth by enabling a broader European presence and further product development.
Christian Jessen, Chief Financial Officer at Formalize, addressed the funding round and the company's direction:
"This funding round reflects the strong momentum Formalize has built across Europe and the confidence investors have in our execution. We've shown that compliance is mission-critical for businesses of all sizes, and this capital allows us to continue scaling with discipline, strengthening our product and expanding our European footprint."
Investor confidence
Quotes from investors highlight their confidence in Formalize's approach and potential to address the needs of European businesses relating to compliance. Fritz Oidtmann, Managing Partner at Acton Capital, remarked:
"It's increasingly hard for small and mid-sized companies in the EU to handle all the requirements imposed on them by regulation. Formalize has impressed us with a superior solution that allows companies to have all processes and data required fully under control. No other solution we looked at got even close to Formalize's capability to capture the particularities of all countries and industries while keeping the solution easy to handle."
Michele Foradori, Managing Director at Blackfin Tech, also commented on Formalize's role in the market:
"At BlackFin, we are more and more convinced that Formalize has assembled the right product and team to own SME compliance in Europe, turning GDPR, NIS2, and DORA into simple, scalable workflows. With stellar growth and AI accelerating adoption, they are in the perfect spot to convert regulatory burden into a competitive advantage."
Company outlook
The EUR €30 million Series B round brings Formalize's total funding to EUR €50 million, supporting the company's ambition to be a central provider for governance, risk, and compliance across Europe. The firm currently serves thousands of businesses and operates offices in Copenhagen, Aarhus, Madrid and Milan, employing more than 160 people.
