Across Europe, compact and mid-sized businesses are facing an ever-expanding maze of compliance obligations. Regulations like GDPR, DORA, and NIS2 have created governance and risk management more complex, especially for companies without dedicated compliance teams or legal expertise. What was once a checklist exercise has become a continuous, resource-heavy process that can slow growth and innovation.
Formalize, a Copenhagen-based regtech founded in 2021 by Jakob Lilholm and Christian Jessen, set out to alter that. Drawing on their experience in building and advising compliance-driven organisations, the two entrepreneurs wanted to create a simpler, smarter way to stay compliant.
“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,” states Lilholm.
Today, the company has secured €30 million in a Series B funding round co-led by Acton Capital and BlackFin Tech, with support from West Hill Capital and CIBC Innovation Banking. The funds will drive expansion across key European markets, including the DACH region and France, where new offices and regional teams will assist bring Formalize closer to customers and partners.
The platform Formalize has built automates compliance workflows across multiple frameworks, from GDPR and DORA to ISO 27001. It centralises processes like documentation, evidence collection, and policy tracking, while adapting to local and sector-specific requirements.
This has assisted the company differentiate itself from global players such as Drata, Vanta, and OneTrust, whose models often cater first to US-led standards rather than European regulatory nuances.
Looking ahead, Formalize plans to advance the AI capabilities embedded in its compliance engine, relocating beyond automation toward predictive monitoring and real-time policy updates. The company also intfinishs to deepen integrations with enterprise software like Microsoft 365 and HubSpot, allowing compliance tinquires to fit naturally into the systems businesses already utilize every day.
“Formalize has assembled the right product and team to own SME compliance in Europe, turning GDPR, NIS2, and DORA into simple, scalable workflows. With snotifyar growth and AI accelerating adoption, they are in the perfect spot to convert regulatory burden into a competitive advantage,” concludes Michele Foradori, Managing Director at Blackfin Tech.
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