Algoma has raised $2.3 million in Seed funding to develop its AI-powered platform that automates compliance processes for heavily regulated industries. The round was led by Zacua Ventures, with participation from SOSV, Iron Prairie Ventures, DOMiNO Ventures, Compose VC, and several angel investors.

Founded by Josef Bromovsky, Seyfihan Usarer, and Kyle MertensMeyer, Algoma is tackling one of the most persistent friction points in enterprise operations: the costly, complex, and slow nature of regulatory compliance. With this capital infusion, the team aims to expand product development and grow its customer base across Europe and North America.

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What Algoma Does

Algoma builds an intelligent compliance engine that helps companies continuously meet regulatory obligations, manage audits, and generate documentation in real time. Rather than relying on legacy GRC (governance, risk, and compliance) software or expensive consulting firms, Algoma automates the compliance lifecycle - from control mapping to report generation - using structured data and machine learning.

The platform is particularly valuable for industries like construction, manufacturing, energy, and chemicals, where compliance requirements are constantly shifting and often jurisdiction-specific.

“We started Algoma after seeing how many businesses were burning time and resources trying to stay compliant in outdated, manual ways,” said co-founder Josef Bromovsky. “Our platform turns that pain point into a competitive edge.” 

This is where Algoma's approach stands out. By embedding compliance directly into operational workflows, it allows companies to treat regulation not as a reactive task, but as a design principle. And that mindset shift is powerful. For founders building in regulated spaces, this reframes compliance from a defensive cost center to a strategic moat. When your product or operations already meet - and document - industry requirements, you remove one of the biggest sources of friction in B2B sales: trust. You don’t just look compliant; you are provably, continuously compliant.

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Why It Matters Now

The global regulatory environment is tightening. In Europe alone, updates to ESG disclosures, supply chain due diligence, and digital product compliance are coming faster than most companies can track. In the U.S., OSHA, EPA, and industry-specific agencies continue to issue new standards with increased enforcement.

According to PwC, compliance spending now accounts for up to 10% of operational costs in some sectors, and 85% of compliance officers cite resource constraints as a major concern.

This shift has created demand not just for consultants - but for infrastructure-level solutions that continuously adapt to regulatory change. Algoma is positioning itself to be that foundational layer.

According to Deloitte, 69% of compliance professionals believe their organization’s risk exposure has increased in the past two years, while nearly 60% say they lack the real-time tools needed to manage it.

This growing pressure is no longer a matter of box-checking - it’s a fundamental operational constraint. Algoma’s ability to continuously interpret, apply, and document compliance measures in real-time gives companies a path forward in a world where static compliance programs are quickly becoming obsolete.

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The Market Opportunity

The global RegTech (regulatory technology) market is expected to grow from $8.2 billion in 2023 to over $44 billion by 2030, according to Fortune Business Insights. While financial services has traditionally led this charge, there’s a new wave of demand in industrials, logistics, energy, and construction, where compliance burdens are rising and digitization is overdue.

In the construction and infrastructure sectors alone, new environmental and safety regulations have added layers of documentation and oversight that require real-time data validation. Algoma’s focus on these industries gives it a clear edge in a niche that’s underserved by generic compliance tools.

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Who’s Backing Algoma

The funding round brought together a diverse mix of deep-tech and vertical-focused investors:

• Zacua Ventures, known for backing construction and climate tech solutions, brings valuable domain knowledge.
  
• SOSV, a prominent deep-tech accelerator, offers support in go-to-market execution and technical scaling.
  
• Iron Prairie Ventures and DOMiNO Ventures provide industry access and operational mentorship.
  

With this backing, Algoma is poised to expand from proof-of-concept deployments into broader enterprise rollouts.

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What’s Next for Algoma

The startup plans to use the funding to grow its engineering team, expand its regulatory database, and deepen integrations with ERP and EHS systems used by enterprise clients. The goal is to move beyond regulatory alerts and into full automation of compliance workflows, complete with dashboards, documentation audit trails, and risk scoring.

They’re also planning geographic expansion. While currently focused on the DACH region, Algoma has its eyes on the UK and North America, where compliance regulations are becoming similarly burdensome and fragmented.

Long term, Algoma wants to be the “compliance cloud” that regulated industries rely on to keep operations legal, efficient, and scalable - no matter how fast the laws change.