Stockholm-based AI RegTech company Hybridity AI has successfully raised SEK 22 million to accelerate the commercialization of its AI-native compliance platform, Hy5. Founded in 2023, the company has developed a system aimed at automating the resource-intensive aspects of regulatory compliance, from interpreting complex regulations to ensuring ongoing adherence in highly regulated industries.
Hybridity primarily targets sectors such as finance, where compliance requirements are particularly intricate. The company highlights that compliance remains one of the largest operational barriers to growth, costing European businesses over €150 billion annually. This significant financial burden underscores the necessity for tools that improve compliance efficiency.
The newly acquired capital will facilitate Hybridity’s next phase of commercialization and international expansion. The funding round attracted notable participation from the family office Fonos, which is backed by the Irinarchos family, founders of Pagero and board members of the European Big Data Value Association. Other existing investors include Noam Perski, Head of Europe at Palantir; Stefan Lennhammer, chairman of the board at Hybridity and former chairman of Truecaller; and Simon Josefsson, former CTO at Yubico.
As part of its growth strategy, Hybridity has appointed Magnus Sahlgren as CEO. Sahlgren previously held the position of Head of Research for Language Technologies at AI Sweden and brings over 20 years of experience in artificial intelligence research, language technology, and applied machine learning, positioning him well to lead the company through its next phase.
The Hy5 platform aims to enable organizations to manage complex regulations continuously and at scale through AI, reducing reliance on manual compliance processes. Hybridity asserts that its solution could allow organizations to grow faster, maintain continuous compliance, and manage risk more effectively. “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,” said Sahlgren.
Hans Otterling, an investor in Hybridity, remarked on the company’s potential: “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.”
As industries grapple with the evolving landscape of regulatory compliance, the demand for efficient, AI-driven solutions is likely to increase. With the funding boost and strategic leadership in place, Hybridity aims to not only enhance its operational capabilities but also to expand its reach, addressing the growing need for effective compliance tools across various sectors.
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