Danish legaltech comet continues wild growth with another major multi-million investment
Danish software company Formalize has raised DKK 225 million in a new investment round. The capital will be used to strengthen the company’s position as a leading European platform for governance, risk and compliance (GRC), with thousands of companies already using the solution to meet complex EU regulations.
The investment is a Series B round led by international private equity funds Acton Capital from Germany and BlackFin Tech from France. The round also includes West Hill Capital and CIBC Innovation.
Formalize announces this in a press release.
EU regulations as a business-critical discipline
In just a few years, Formalize has established itself as one of Europe’s fastest growing legaltech companies. The platform unifies and automates compliance with new EU regulations such as NIS2 and DORA, and is increasingly targeting both large enterprises and SMEs.
“Compliance requirements are no longer just for large companies, but also a prerequisite for doing business for European SMEs. By automating the processes, we make it easy to work with GRC without compromising on security or usability,” says Jakob Lilholm, CEO and co-founder of Formalize.
According to Jakob Lilholm, the investors share the ambition to cement the company’s role as a leading player in the field.
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“Our ability to scale and create value for our customers has made us one of Europe’s leading players when it comes to automating EU regulatory work. I’m extremely proud that our investors share our ambition to cement that position and that we will now work together towards new goals,” he says.
International growth and expansion
Since the company’s Series A round in 2024, Formalize has grown to over 160 employees with offices in Aarhus, Copenhagen, Madrid and Milan. Customers include more than 8,000 organizations and 850 consultancies and law firms.
One example of Formalize’s success is in Spain, where the company has been chosen as the official whistleblower solution for the entire country.
“The investment reflects the growth we have experienced in Europe and the confidence investors have in our execution capabilities. We have proven that compliance is business critical for all companies, large and small. The capital enables us to scale in a disciplined way, strengthen our product and expand further in Europe,” says Christian Jessen, CFO of Formalize.
With this round, Formalize has raised a total of around 375 million DKK.