Formalize, a fast-growing compliance software company, has raised €30m in a Series B funding round to accelerate its expansion across Europe.
The round was co-led by Germany’s Acton Capital and France’s BlackFin Tech, with further participation from West Hill Capital and CIBC Innovation Banking.
The company, which provides an all-in-one platform for governance, risk, and compliance (GRC), aims to simplify how thousands of small and medium-sized enterprises (SMEs) navigate the EU’s evolving regulatory environment. Formalize automates compliance workflows, consolidates regulatory requirements, and enables organisations to adapt quickly to new frameworks.
With the new capital, Formalize intends to strengthen its position as Europe’s go-to compliance operations platform, particularly in key markets such as DACH and France. The funding will support the opening of new offices, expansion of local teams, and continued investment in AI-driven product development.
Formalize’s platform is already trusted by more than 8,000 organisations and 850 consultancies and law firms. Its technology addresses critical EU regulations such as GDPR, NIS2, DORA, and ISO 27001, helping businesses maintain information security and resilience. In Spain, the company has been appointed as the national whistleblowing authority, providing millions of employees with a secure channel to report concerns.
Formalize CEO and co-founder Jakob Lilholm said, “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.”
Formalize CFO Christian Jessen said, “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.”
Acton Capital managing partner Fritz Oidtmann said, “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.”
BlackFin Capital Partners managing director Michele Foradori said, “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.”
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