Financial news

The company says the Seed funds will help it to accelerate its product development and go-to-market plan, enabling businesses to fortify their identity and anti-money laundering procedures against constantly changing threats.

Investors in this round

The round was led by Unusual Ventures with additional backing from Fin Capital. Existing investors Cherry Ventures, Alliance Ventures, Forward VC, and Greens Ventures also participated in this round.

Unusual Ventures is a seed-stage VC firm that provides creators of infrastructure software and application-level startups a competitive edge. Founded in 2018, the firm aims to reinvent the VC engagement model by serving entrepreneurs with unprecedented levels of hands-on services.

Fin Capital is an asset management firm that backs B2B fintech companies across the US, Europe, and LatAm. Its 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.

“Rethink how fintech products are built”

Founded in 2022 by Jontan Klintberg, Fredrik Eriksson and Robin Lantz, Bits Technology is on a mission to simplify and democratise financial tech services for everyone.

The company says, “Our strategy involves the orchestration of multiple infrastructure and data sources, resulting in flexibility and dynamic user experiences.”

According to Bits, businesses currently face a number of administrative challenges in the identity and anti-money laundering (AML) area, which includes crucial procedures like Know Your Customer (KYC) and Know Your Business (KYB). 

These areas present massive opportunities for improvement, says Bits, and it is, hence, addressing them. These include:

• Eliminating the need for a single provider: One of the biggest problems clients have is being forced to use a single provider or data source for these services, which may prevent them from expanding and improving their offerings.
• Provide central visibility: By prioritising numerous systems for various uses, many businesses attempt to address the mentioned single supplier lock-in. But that also impacts the onboarding of new clients and users and restricts central view into data.
• Creating customisable solutions: These services and systems are rigid when combined. Systems for onboarding, monitoring, and AML must be adaptable to the particular requirements of each customer.

In 2023, Bits Technology will offer a range of solutions for the European market, including a no-code solution and API offering.

Through the platform, customers will be able to build dynamic onboarding flows that can be scaled across numerous markets without worrying about adhering to regional compliance laws or incorporating additional service providers.

Also, teams can design a customised onboarding procedure as well as a customer reporting solution for AML and user management. 

Teams will be given collaboration capabilities in a single view by this solution, to help them access useful data, create custom rules, evaluate risk, stop fraud, and uphold compliance.

Jonatan Klintberg says, “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,” adds Klintberg.