Stockholm-based startup Bits Technology has secured €4 million in a seed round led by Unusual Ventures, and also backed by Fin Capital with its existing investors including Cherry Ventures and Alliance Ventures. 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.
“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.” says Lars Albright, General Partner at Unusual Ventures.
