Danish software firm Formalize raises €30M to help businesses manage compliance rules across Europe

Copenhagen-based compliance software company Formalize has raised €30M to expand its compliance platform across Europe.

Copenhagen-based Formalize, a compliance software company, has secured €30M in a Series B funding round. 

The investment was co-led by Germany’s Acton Capital and Blackfin Tech from France, with additional support from West Hill Capital and CIBC Innovation Banking.

Michele Foradori, MD at BlackFin Tech, says, “At BlackFin Tech, 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.”

Simplifying compliance

Across Europe, businesses face growing pressure to comply with frameworks such as GDPR, NIS2, DORA, and ISO 27001. Formalize’s platform brings these requirements together and provides tools for process automation, documentation, and oversight.

Fritz Oidtmann, Managing Partner at Acton Capital, says, “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.”

Founded in 2021, Formalize provides tools for managing whistleblowing, NIS2, DORA, ISO 27001, GDPR, and other compliance frameworks. The system automates compliance processes and supports businesses in handling regulatory and risk requirements.

The company serves more than 8,000 customers and operates from offices in Copenhagen, Aarhus, Madrid, and Milan. Formalize employs over 160 people and has raised a total of €50M to date.

Capital utilisation

Formalize will use the funds to expand in Europe, with a focus on the DACH region and France. Plans include opening offices, building local teams, and increasing support for customers and partners. 

The company also intends to invest in product development and extend its reach to more organisations across the European market.

Since its inception in 2021 and strengthened by its Series A in 2024, Formalize has been adopted by more than 8,000 organisations and over 850 consultancies and law firms. In Spain, the company has also been selected as the national whistleblowing authority, offering millions of employees a channel to report concerns.

Jakob Lilholm, CEO and co-founder of Formalize, says, “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.”

Christian Jessen, CFO of Formalize, adds, “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.”