Formalize Raises €30M Series B to Scale Compliance Platform

Compliance automation just got a major vote of confidence. Formalize, the Copenhagen-based GRC platform, has closed a €30 million Series B funding round co-led by Acton Capital and Blackfin Tech. The round included participation from West Hill Capital and CIBC Innovation Banking, bringing the company’s total raised to €50 million since its 2021 launch. For a sector drowning in regulatory complexity, this kind of capital signals that automated compliance isn’t just necessary—it’s becoming the default.

Europe’s regulatory landscape has transformed into a maze of interconnected requirements. NIS2, DORA, GDPR, ISO 27001—each framework demands documentation, monitoring, and continuous updates. Formalize’s platform tackles this by consolidating compliance workflows into a single system, automating data collection and task management across multiple frameworks. The approach resonates: the company now serves organizations in over 80 countries and supports more than 12 languages.

Why Series B Funding Matters for Compliance Tech

This latest Series B funding round positions Formalize to capitalize on Europe’s regulatory expansion. The company started in 2021 with whistleblower software, then evolved into a comprehensive compliance platform. Jakob Lilholm, CEO and co-founder, frames compliance as non-negotiable: “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.”

The investor profile tells its own story. Acton Capital and Blackfin Tech both focus on B2B software with recurring revenue models—exactly what compliance platforms deliver. Blackfin previously led Formalize’s €15 million Series A, suggesting continued conviction in the company’s trajectory. Michele Foradori, Investment Director at BlackFin, noted at the time that the potential to automate compliance processes across the EU is “huge,” given increasing organizational demands.

Formalize’s growth trajectory aligns with regulatory timing. The EU’s Digital Operational Resilience Act (DORA) took effect in January 2025, requiring financial institutions to maintain comprehensive registers of ICT risk management. NIS2 expanded cybersecurity requirements across critical infrastructure sectors. Each new regulation creates compliance work—and demand for tools that streamline it.

European Expansion and Market Strategy

The €30 million will fund geographic expansion, particularly in the DACH region and France. Formalize plans to open additional offices and grow local teams to support customers and partners. This localized approach matters in compliance, where regulations vary by country and language barriers complicate implementation. The company already maintains offices in Copenhagen, Aarhus, Milan, and Madrid—a footprint that reflects Europe’s fragmented regulatory environment.

Formalize’s platform integrates risk management, incident tracking, supplier audits, and policy management into interconnected workflows. Users can customize dashboards, automate questionnaires, and link controls across multiple frameworks. The system supports 70+ languages in its whistleblowing module and maintains high-security standards with metadata removal and end-to-end encryption. Clients include organizations like Fondazione Opera San Camillo, which cited the platform’s ability to create “a solid base of structured data that can be easily exported and filtered.”

The competitive landscape includes established players like OneTrust and newer entrants targeting specific compliance niches. Formalize differentiates through its European focus, multi-framework approach, and emphasis on customization. The company claims 4.9 out of 5 stars on G2 and market-leading status for its whistleblower software. Over 8,000 companies use Formalize’s products, covering more than 5 million employees.

Series B funding typically signals product-market fit and readiness to scale. For Formalize, the timing coincides with regulatory acceleration across Europe. Whether compliance automation becomes as ubiquitous as CRM or project management tools depends on execution. But with €50 million in the bank and regulatory complexity showing no signs of simplifying, Formalize has positioned itself at the intersection of necessity and opportunity.