Stockholm-based AI RegTech company Hybridity AI has raised SEK 22 million to accelerate the commercialization of its AI-native compliance platform, Hy5. Founded in 2023, the company has built a system designed to automate the most resource-intensive aspects of regulatory compliance, from interpreting complex regulations to ensuring ongoing adherence.
Hybridity focuses on serving highly regulated industries such as finance, where compliance requirements are particularly complex. The company says compliance remains one of the biggest operational barriers to growth across regulated sectors, costing European businesses more than €150 billion annually.
The newly raised capital will support Hybridity’s next phase of commercialization and international expansion. The round includes participation from the family office Fonos, backed by the Irinarchos family, founder of Pagero and a board member of the European Big Data Value Association. Existing investors include Noam Perski, Head of Europe at Palantir; Stefan Lennhammer, chairman of the board at Hybridity and former chairman of the board at Truecaller as well as founder of Reeda Capital Family Office and co-founder of Catella and Stronghold; and Simon Josefsson, former CTO at Yubico.
As part of its continued growth strategy, the company recently appointed Magnus Sahlgren as CEO. Sahlgren previously served as Head of Research for Language Technologies at AI Sweden and brings more than 20 years of experience in artificial intelligence research, language technology, and applied machine learning.
Hybridity says its Hy5 platform enables organizations to manage complex regulations continuously and at scale by using AI instead of relying on manual processes. The company aims to help organizations grow faster, remain continuously compliant, and manage risk more effectively.
KEY QUOTES:
Compliance is one of the biggest operational barriers to growth in regulated industries, costing European businesses over €150 billion annually. Our platform Hy5 enables organizations 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 commercialization.
Magnus Sahlgren, CEO of Hybridity
Hybridity has developed a technically strong solution for a large and rapidly growing problem. The combination of deep AI expertise and a clear business focus positions the company well to scale internationally.
Hans Otterling
