Stockholm-based RegTech startup Hybridity has secured €2 million (SEK 22 million) in fresh funding to accelerate the commercial rollout of its AI-native compliance platform, Hy5.
The round brings in new investors including Henrik Ekelund (BTS Group), Hans Otterling, Jörgen Bladh (formerly Northzone), the Irinarchos family via family office Fonos, and Björn Hovstadius, founder of Pagero and board member of the European Big Data Value Association.
Hybridity previously raised €2.16 million (SEK 23 million) in March 2025, bringing total funding to €5 million (SEK 54 million).
Automating Complex EU Regulations
Founded in 2023, Hybridity is building what it describes as a Compliance Operating System designed to automate and standardise regulatory processes for European businesses.
Its platform, Hy5, combines artificial intelligence with legal engineering to help organisations manage evolving regulatory requirements such as DORA, NIS2, GDPR, CSRD and SFDR.
Hy5 can automatically review contracts against regulatory frameworks, conduct GAP analyses, generate action plans, update internal policies, automate CSRD reporting and even create AI-generated compliance handbooks based on governance documents.
The goal is to move compliance away from fragmented, manual processes toward continuous, scalable oversight powered by AI.
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Addressing A €150 Billion Compliance Burden
According to Hybridity, compliance represents one of the largest operational growth barriers for regulated industries in Europe, costing businesses more than €150 billion annually.
Magnus Sahlgren, CEO of Hybridity, said:
“Compliance is one of the biggest operational barriers to growth in regulated industries. Our platform Hy5 enables organisations to manage complex regulations continuously and at scale with the help of AI, instead of relying on manual processes. The new capital allows us to take the next step in commercialisation.”
Hybridity is also backed by several prominent tech figures, including Noam Perski (Head of Europe at Palantir), Stefan Lennhammer (former Chairman of Truecaller and founder of Reeda Capital Family Office), and Simon Josefsson (former CTO at Yubico).
The new funding will be used to strengthen product development and expand commercial efforts across regulated sectors.
About Hybridity
Founded in 2023, Hybridity develops an AI-powered Compliance Operating System (COS) that automates and standardises regulatory workflows. By combining artificial intelligence with legal engineering, the platform acts as a virtual compliance team, helping organisations manage complex EU regulations efficiently and continuously.
