Hybridity, a Stockholm-based company building an AI-native compliance platform for the finance sector, has raised SEK 22 million (€2.1 million) from a group of new angel and private investors — bringing total capital raised since its 2023 founding to SEK 54 million.
New investors joining the cap table include Henrik Ekelund of BTS Group, Hans Otterling, Jörgen Bladh — formerly of Northzone — and family office Fonos, representing the Irinarchos family, founders of Pagero and board members of the European Big Data Value Association, with deep expertise in AI and data infrastructure.
The company is also backed by a notable roster of existing investors including Noam Perski, Head of Europe at Palantir; Stefan Lennhammer, former Chairman of Truecaller and founder of Reeda Capital Family Office; and Simon Josefsson, former CTO at Yubico.
Compliance as a growth bottleneck — and a market opportunity
Regulatory compliance is one of the most resource-intensive operational burdens facing financial institutions and other regulated businesses across Europe. According to Hybridity, the cost to European businesses exceeds €150 billion annually — a figure driven by the sheer complexity and pace of change in EU regulatory frameworks, from DORA and MiCA to AML directives and ESG reporting requirements.
The traditional response has been to throw headcount at the problem: teams of compliance officers manually interpreting regulations, tracking updates, and building processes to demonstrate ongoing adherence. Hybridity’s thesis is that this is exactly the kind of structured, high-stakes reasoning that advanced AI is now capable of doing at scale — and doing continuously.
Its platform, Hy5, is designed to perform the most resource-intensive compliance work end-to-end: from interpreting incoming regulatory changes to maintaining and evidencing ongoing adherence across an organisation. Rather than supporting compliance teams with search or summarisation tools, Hy5 is positioned to take on the heavy lifting itself, enabling organisations to stay continuously compliant without expanding headcount proportionally as regulatory obligations grow.
Magnus Sahlgren, CEO of Hybridity, put the commercial case directly: “Our platform enables organisations 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 commercialisation.”
A CEO with serious AI credentials
Sahlgren’s recent appointment as CEO adds significant weight to Hybridity’s technical credibility. He joins from AI Sweden, where he served as Head of Research for Language Technologies and Natural Language Understanding — and brings over 20 years of experience in AI research, language technology, and applied machine learning. In a sector where trust in the underlying technology is a prerequisite for enterprise adoption, that pedigree matters.
Investor conviction
For Hans Otterling, the investment case rests on the combination of technical depth and business focus: “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.”
The fresh capital will be directed at accelerating commercialisation of the Hy5 platform, with finance remaining the primary beachhead — a sector where regulatory complexity is at its most demanding and the cost of non-compliance at its most severe.
Fast facts:
- Amount raised: SEK 22M (€2.1M / $2.45M)
- Total raised to date: SEK 54M
- Stage: Early stage
- New investors: Henrik Ekelund, Hans Otterling, Jörgen Bladh, Fonos
- HQ: Stockholm, Sweden
- Founded: 2023
- Core product: Hy5 — AI-native regulatory compliance platform
- Website: hybridity.ai
