Formalize, previously known for its market-leading whistleblower software, has outlined its mission to become Europe’s leading compliance software provider by announcing a €15 million Series A round and launching its new compliance platform.
The stringent regulatory requirements imposed on both private and public institutions by the EU have made everyday compliance a complex and time-consuming task, which detracts from competing business priorities. Formalize, is now launching a compliance operations platform to assist with these challenges. The platform is utilized by companies such as Starbucks, McDonald’s, Burger King, and SPAR, and is available to more than five million employees worldwide.
Founder and CEO Jakob Lilholm said: “Due to the increased data compliance regulations from the EU, the standard approach to compliance is no longer sustainable. By automating large parts of the compliance processes, Formalize can help companies ease the work without compromising security and the ability to customize the platform to the company’s specific needs.”
Increasing Need for Compliance Tools
The regulatory requirements imposed on private and public institutions by the EU have made compliance a time-consuming task that limits organizations in developing their business. BlackFin Tech, the lead investor in the funding round, sees huge potential in Formalize and the market in general.
Michele Foradori, Investment Director at BlackFin mentioned: “With the increased demands being placed on organizations across the EU, the potential to automate compliance processes and reporting is huge. Formalize has proven with its whistleblower software that they can create a user-friendly and market-leading product, bringing every professional closer to a work life where they can save time while always staying on top of compliance and regulatory requirements.”
Platform Automates Compliance Work
Until now, Formalize has primarily consisted of the whistleblower platform (now known as ‘Whistleblower Software by Formalize’). Since its last investment round in November 2022, the company has more than quintupled its annual recurring revenue and grown from 20 to 90 employees. Formalize’s whistleblower platform was named the leading platform of its kind by G2 in 2023 and is now available to more than five million employees worldwide, being offered by over 500 consultancies, including PwC, Bird & Bird, and Baker McKenzie.
Now the company is expanding its platform offering into the data compliance space with the intention of becoming Europe’s leading compliance software provider. The compliance platform streamlines compliance workflows and automates processes for GDPR, NIS2, ISO27001, SOC2, and more.
Jakob Lilholm added: “We are delighted to close our round with an investor who shares our ambition to become the leading compliance software provider in Europe. The demand for a tool to simplify compliance work has never been greater, and it will continue to increase,” Jakob Lilholm says.
