Danish Startup Whistleblower Software Rebrands as Formalize and Secures €15 Million to Expand into Compliance Software Sphere
The compliance software market has experienced significant growth in recent times, largely due to increasing regulatory pressure. As a result, investors have taken note of the trend, with private equity giant Thoma Bravo taking German compliance and investor relations software company EQS Group private in a $435 million deal last month. Furthermore, startups such as Cypago, Hyperproof, Certa, and Anecdot have raised substantial venture rounds for various flavors of compliance software.
Formalize’s Expansion into the Compliance Software Market
Danish startup Whistleblower Software is rebranding as Formalize as it expands its operations into the broader compliance software sphere. The company has secured a fresh €15 million ($16 million) in funding to fuel its expansion plans. Formalize aims to capitalize on the growing demand for compliance software, which is expected to reach $54 billion by 2025.
The Rise of Compliance Software
The compliance software market has experienced significant growth in recent times, driven by the European Union’s robust regulatory agenda. Companies are under increasing pressure to comply with various regulations, including GDPR and NIS2 cybersecurity regulations. Formalize co-founder and CEO Jakob Lilholm stated that "the compliance software market is booming, driven by the EU’s robust regulatory agenda."
Formalize’s Solution
Formalize helps companies achieve compliance by providing a platform for whistleblowing. The company emerged in 2021 after Europe’s new whistleblowing directive came into force, requiring larger companies to introduce internal reporting systems for whistleblowers. Formalize’s customers integrate the whistleblowing software to offer employees a way to file reports anonymously. The platform also allows employees to report orally while maintaining their anonymity.
Big-Name Customers
Formalize boasts a slew of big-name customers, including McDonald’s, Gap, and Dutch banking giant ABN AMRO. The company has raised a $3 million seed round of funding 16 months ago and is now gearing up to expand beyond whistleblowing software with the launch of its new compliance platform.
Compliance Platform
Formalize’s new compliance platform is designed to "gather, structure, and automate" all compliance work. The platform aims to simplify the process of complying with various regulations by providing a single solution for all compliance-related tasks.
Growing Demand for Compliance Software
The demand for compliance software is expected to continue growing in the coming years. As companies face increasing pressure to comply with various regulations, the need for effective compliance solutions will only increase. Formalize’s expansion into the compliance software market is well-timed, given the growing demand for such solutions.
Formalize’s Competitive Advantage
Formalize’s competitive advantage lies in its ability to provide a comprehensive solution for whistleblowing and compliance. The company’s platform integrates both aspects, making it an attractive option for companies seeking to comply with regulations while maintaining a secure and anonymous reporting system for employees.
Conclusion
The growth of the compliance software market presents opportunities for startups like Formalize to capitalize on the trend. By expanding its operations into the broader compliance software sphere, Formalize is well-positioned to take advantage of the growing demand for effective compliance solutions. With €15 million in funding secured, the company is set to make a significant impact in the compliance software market.
About the Author
Paul Sawers is a journalist and editor at TechCrunch, covering UK and European startups, as well as other subjects he’s passionate about. Prior to joining TechCrunch, Paul had gained over a decade of experience covering consumer and enterprise technologies for The Next Web (now owned by the Financial Times) and VentureBeat.
Related News
