# Bits Technology

**Source:** https://geo.sig.ai/brands/bits-technology  
**Vertical:** Security  
**Subcategory:** General  
**Tier:** Emerging  
**Website:** bits.bi  
**Last Updated:** 2026-04-14

## Summary

Nordic KYB/KYC identity verification fintech connecting to BankID and European digital ID systems for financial services; €4M seed from Unusual Ventures and Mastercard Lighthouse with YC W20 backing.

## Company Overview

Bits Technology is a Stockholm-based business and customer identity verification fintech — providing API-based business identity (KYB) and customer identity (KYC) verification infrastructure for financial services companies, with a focus on the Nordic and European financial markets where digital identity standards (BankID in Sweden, MitID in Denmark, FinID in Finland) create a strong foundation for identity-verified financial products. Backed by Y Combinator (W20), Unusual Ventures, Fin Capital, Cherry Ventures, and Mastercard Lighthouse with €4 million ($5.49 million) in seed funding raised in April 2023.

Bits Technology's infrastructure connects to Nordic national digital identity systems (the eID ecosystem across Scandinavia) alongside global document verification and biometric KYC capabilities, providing financial companies with a unified identity verification API that handles the full spectrum of identity assurance levels — from basic phone number verification to government-issued digital identity authentication. The Nordic markets are among the most advanced for digital identity infrastructure globally, with BankID adoption rates above 90% in Sweden and Norway.

In 2025, Bits Technology competes in the European identity verification and KYB/KYC market with Onfido (acquired by Entrust), Signicat (Nordic identity and signing), Sumsub, and Persona for digital identity verification and business onboarding compliance. The European KYC/AML compliance market has grown substantially as AMLA (the new EU anti-money laundering authority, established 2024) and MiCA (crypto asset regulation) create new compliance requirements for fintechs, crypto platforms, and payment companies operating in the EU. Nordic markets are particularly active for fintech development — Sweden, Finland, and Denmark have produced disproportionately many fintech companies relative to their population. Mastercard Lighthouse's participation provides the payments ecosystem distribution. The 2025 strategy focuses on growing the Nordic financial services customer base, expanding to broader EU markets leveraging eIDAS digital identity standards, and building the business identity verification features for B2B payment platforms.

## Frequently Asked Questions

### What is Bits Technology?
Bits Technology is a Stockholm-based fintech startup founded in 2020 that specializes in business and customer identity verification solutions. The company is backed by Y Combinator (W20) and focuses on providing identity verification and KYC compliance tools for the financial services sector.

### What products and services does Bits Technology offer?
Bits Technology offers business identity verification, customer identity platform, KYC compliance solutions, identity verification APIs, and business onboarding tools. These solutions are designed specifically for financial services companies.

### Who are Bits Technology's target customers?
Bits Technology primarily targets companies in the financial services sector that require business identity verification and customer onboarding solutions. Their products serve businesses that need to comply with KYC (Know Your Customer) regulations.

### When was Bits Technology founded?
Bits Technology was founded in 2020. The company participated in Y Combinator's Winter 2020 (W20) batch.

### Where is Bits Technology located?
Bits Technology is based in Stockholm, Sweden.

### How much funding has Bits Technology raised?
Bits Technology raised €4M ($5.49M USD) in seed funding in April 2023. The round was led by Unusual Ventures with participation from 9 total investors including Fin Capital, Cherry Ventures, Alliance Ventures, and Mastercard Lighthouse.

### Who are Bits Technology's investors?
Bits Technology is backed by Y Combinator and received seed funding led by Unusual Ventures. Other investors include Fin Capital, Cherry Ventures, Alliance Ventures, Mastercard Lighthouse, and 4 additional undisclosed investors for a total of 9 investors.

### What is Bits Technology's connection to Y Combinator?
Bits Technology is backed by Y Combinator and participated in their Winter 2020 (W20) batch. This prestigious accelerator program helped support the company's early development.

### What industry does Bits Technology operate in?
Bits Technology operates in the security and fintech industries. The company specifically focuses on identity verification and KYC compliance solutions for the financial services sector.

### What are the most recent developments at Bits Technology?
The most recent publicly disclosed development was Bits Technology's €4M ($5.49M USD) seed funding round in April 2023 led by Unusual Ventures. The company continues to focus on business and customer identity verification solutions for financial services.

## Tags

b2b, cybersecurity, saas, security, startup

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*Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*