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 systems designed to automate the most resource-intensive aspects of regulatory compliance, from interpreting complex regulations to ensuring ongoing compliance.
Hybrid is focused 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 the regulated sector, costing European companies more than €150 billion a year.
The new capital raised will support the next phase of Hybrid’s commercialization and international expansion. The round includes participation from Fonos, a family office backed by the Irinarchos family, founders of Pagero and board members of the European Association for the Value of Big Data. Existing investors include Noam Perski, Palantir’s head of Europe. Stefan Lenhammer is Chairman of the Board of Hybridity, former Chairman of the Board of Truecaller, founder of Reeda Capital Family Office, and co-founder of Catella and Stronghold. and Simon Josefsson, former CTO of Yubico.
As part of its continued growth strategy, the company recently appointed Magnus Sahlgren as CEO. Mr. Sahlgren was previously Head of Research for Language Technologies at AI Sweden and has more than 20 years of experience in artificial intelligence research, language technologies, and applied machine learning.
Hybridity says its Hy5 platform enables organizations to use AI to manage complex regulations continuously and at scale without relying on manual processes. The company aims to help organizations grow faster, remain compliant, and manage risk more effectively.
Main quotation:
Compliance is one of the biggest operational barriers to growth in regulated industries, costing European companies more than €150 billion annually. Our platform, Hy5, enables organizations to manage complex regulations continuously and at scale with the help of AI, rather than relying on manual processes. The new capital will allow us to take the next step in commercialization.
Magnus Sahlgren, Hybridity CEO
Hybrid has developed a technologically powerful solution to a rapidly growing large-scale problem. The combination of deep AI expertise and clear business focus positions the company to expand internationally.
Hans Otterling
