Compliance automation scale-up Formalize has raised €30 million in Series B funding to expand its all-in-one governance, risk, and compliance (GRC) platform across Europe.
The round was co-led by Acton Capital (Germany) and BlackFin Tech (France), with participation from West Hill Capital and CIBC Innovation Banking. This latest raise brings the total funding to €50 million, fueling its expansion into key markets including DACH and France.
“Compliance is no longer optional—it’s foundational to doing business,” said Jakob Lilholm, CEO and Co-founder of Formalize. “We’re building a future where automation and AI make compliance effortless for European SMBs, without losing the local expertise and trust that define us.”
Simplifying the Complex World of European Compliance
Across Europe, small and mid-sized businesses are grappling with a surge in regulations such as GDPR, NIS2, DORA, and ISO 27001—all designed to strengthen data protection, cybersecurity, and operational resilience.
Formalize simplifies compliance by automating regulatory workflows, centralizing requirements, and helping companies adapt quickly to new rules. Its AI-powered platform turns compliance from a burden into a competitive advantage, saving time, reducing risk, and ensuring businesses stay audit-ready.
“Formalize has shown that compliance is mission-critical for businesses of every size,” said Christian Jessen, CFO of Formalize. “This investment allows us to scale responsibly, strengthen our product, and deepen our European footprint.”
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From National Whistleblowing Platform to European Market Leader
Since its 2021 founding, the startup has become one of Europe’s fastest-growing compliance platforms, serving 8,000+ organizations and 850+ consultancies and law firms.
The company’s impact is already visible at scale: in Spain, Formalize was selected as the national whistleblowing authority, providing millions of employees with a secure, transparent channel to report concerns.
Now, Formalize aims to extend its reach further, opening new offices, expanding local teams, and enhancing its platform for Europe’s most regulated sectors—from financial services to critical infrastructure.
Backed by Leading European Investors
Investors see Formalize as the company poised to own the SME compliance category across Europe.
“It’s increasingly difficult for SMBs to keep up with the regulatory pressure,” said Fritz Oidtmann, Managing Partner at Acton Capital. “Formalize stood out as the only solution capable of handling Europe’s regulatory diversity while remaining intuitive and easy to use.”
“Formalize has the right product and the right team to lead compliance for Europe’s SMEs,” added Michele Foradori, Managing Director at BlackFin Tech. “They’re turning complexity—GDPR, NIS2, DORA—into simple, scalable workflows. With AI driving adoption, they’re transforming regulatory pain into strategic value.”
About Formalize
Formalize is a Copenhagen-based compliance software company helping organizations navigate Europe’s evolving regulatory landscape. Its AI-powered platform automates workflows for GDPR, NIS2, DORA, and ISO 27001, enabling businesses to manage risk, security, and reporting from one intuitive system. Founded in 2021, Formalize serves 8,000+ customers, employs 160+ people, and operates from offices in Copenhagen, Aarhus, Madrid, and Milan.
About Acton Capital
Acton Capital is a Munich- and Vancouver-based venture capital firm investing in digital transformation and technology-driven business models. With over two decades of experience and more than 100 startups backed, Acton supports high-growth companies across Europe and North America.
About BlackFin Tech
BlackFin Tech is Europe’s leading fintech and insurtech investor with €4 billion in assets under management. Founded in 2009, it invests from Series A to Series C, backing category-defining companies in financial services and compliance technology from offices across Paris, Frankfurt, Amsterdam, Brussels, and London.
