€4M Seed Funding

€4M Seed Funding

Apr 27, 2023

Bits Technology raises €4 million seed round, paving way to become leading European customer and business identity platform.

Stockholm, Sweden 2023-04-27: Today, Bits Technology, the Stockholm-based startup that focuses on business and customer identity, announces a new €4 million seed funding raise that will help the company further its mission of reshaping how future fintech products are built. Bits will use the raise to fast-track its product development and go-to-market strategy so that organisations can significantly strengthen their important identity and anti-money laundering processes against ever-evolving threats. The round is led by Unusual Ventures with additional backing from Fin Capital. All major existing investors from last fall's pre-seed round, such as Cherry Ventures and Alliance Ventures, also participated.

The identity and anti-money laundering (AML) space, which includes important processes like Know Your Customer (KYC) and Know Your Business (KYB), currently presents several administrative hurdles for businesses. Yet, on the flip side, these areas present massive opportunities for improvement — and Bits are fixing them.

Eliminate the need for a single provider

The major challenge customers face is to be locked into a specific provider or data source for these services, which may halt their ability to grow and evolve their services.

Provide central visibility: Many companies try to fix the mentioned single provider lock-in, by triaging multiple systems for different purposes. But that, in turn, limits central visibility into data and affects the onboarding of new customers and users.

Creating customizable solutions: Together, these providers and systems are rigid. Systems tackling onboarding, monitoring, and AML need to be customisable to adapt to each customers' unique needs.

Following this seed round, Bits Technology is in 2023 launching a suite of products for the European market, including a no-code solution and API offering. The platform enables customers to easily create dynamic onboarding flows that can be scaled seamlessly across multiple markets without worrying about local compliance regulations, nor integrating new service providers. Meanwhile, the platform will empower teams to create a tailored onboarding experience and a customer reporting solution for AML and user management. This solution equips teams with collaborative tools in a single view, enabling them to access actionable data, customise rules, assess risk, prevent fraud, and maintain compliance.

Bits Technology is poised to revolutionise the identity and AML space by providing customers with greater flexibility, customisation, and efficiency.

“At Bits we build for a seamless user journey in the necessary KYC processes – which are fundamental in order for businesses to both convert and comply. By utilising Bits, customers can conveniently access all the necessary data for effectively managing and taking action on their customer and user onboarding. By using Bits’ platform, businesses of all sizes can create a single view over the necessary user information–irrespective of the number of data sources and service providers involved. Says Jonatan Klintberg, CEO & Co-founder at Bits Technology.

From a market perspective, identity and AML services present a significant opportunity for growth and innovation driven by an increased complexity in financial regulations and digital technologies. According to the company, the compliance and risk management software market in Europe is expected to be worth $70bn by 2027 driven by factors such as increasing regulatory pressure, rising financial crimes, and the need for more sophisticated identity verification and monitoring solutions.

“We are thrilled to partner with the team at Bits Technology as they tackle some of the biggest challenges in the identity and AML space. We see a large and rapidly growing market in this category, but winning requires world-class founders with deep expertise. We were impressed by the bold vision and innovative approach of the Bits founders and team, and this is what makes them a perfect fit for our portfolio. We’re excited to support their efforts to bring cutting-edge solutions to market.”

Lars Albright, General Partner at Unusual Ventures.

For more information please contact press@bits.bi

About Unusual Ventures: 
Unusual Ventures is a seed-stage venture capital firm designed from the ground up to give a distinct advantage to founders building infrastructure software and application-level companies. Unusual was founded in 2018 with the mission to reinvent the venture capital engagement model by serving entrepreneurs with an unprecedented level of hands-on services.

Described as a partner versus a top-down stakeholder by its portfolio companies, Unusual is laser-focused on serving exceptional founders and teams building innovative products. With offices in Menlo Park, San Francisco, and Boston, Unusual has invested in category-defining companies like Arctic Wolf Networks, Carta, Robinhood, Harness, and Vivun.

About Fin Capital
Fin is a global asset management firm focused on full life cycle investing in B2B FinTech companies across the US, Europe, and LatAm. With offices in San Francisco, New York, Los Angeles, Miami and London, Fin’s investing platform includes Point of Inception (Regatta, Pre-Seed / Seed), Early Stage (Flagship, Series A-B), Growth Equity (Horizons, Series C+), and Public Equity (Constellation) strategies, and has invested in over 110 portfolio companies globally. The firm focuses broadly across FinTech in ten sub-sectors: Asset Management/Capital Markets, CFO Tech Stack, Impact Tech, InsurTech, Enabling Tech/Infrastructure, Next-gen Banking, PropTech, RiskTech, Vertical FinTech, Web 3 Infrastructure, For more information, visit fin.capital.

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