Swiss AI startup DemoSquare raises €1.2 million

DemoSquare, a Swiss-based EPFL spin-out that develops AI technologies to help companies anticipate political and regulatory changes, has raised CHF 1.2 million (approx. EUR 1.28 million) in a pre-seed funding round from Swiss and German investors.

The financing round was led by Zurich-based QBIT Capital and co-investor was High-Tech Gründerfonds (HTGF).

Georges Khneysser, Founder of QBIT Capital, says: “Victor and Jérémie are visionary entrepreneurs who are poised to redefine industry standards.”

“By using the power of AI and machine learning to monitor and analyze complex operations, they are solving serious industry challenges with groundbreaking innovation. We are thrilled to be a part of their journey and look forward to seeing them develop to their full potential.”

Capital utilization

These funds will accelerate DemoSquare’s expansion into European markets and influential EU institutions.

DemoSquare Co-Founder and CEO Victor Kristof says: “We are thrilled to announce the closing of this first round of funding one year after DemoSquare’s launch and are honored to have such influential investors on board. It is a gratifying validation of our team’s efforts and a testament to our ambition.”

“The investment will now help us achieve our next goal: deploying our state-of-the-art solution across public affairs teams in Europe.”

What does DemoSquare offer?

DemoSquare mentions in a statement that regulatory risks can disrupt business operations, as seen with companies like Uber, Airbnb, and Nvidia. To address this, government affairs teams are becoming increasingly essential.

DemoSquare, a subsidiary of EPFL, has developed an AI-based platform that helps companies anticipate and manage these regulatory challenges efficiently and cost-effectively.

Founded in 2023 by Dr. Victor Kristof and Dr. Jérémie Rappaz, AI-powered SaaS platform DemoSquare helps companies navigate regulatory complexities and stay ahead of legislation. The platform is based on their PhD research in machine learning and AI.

The startup’s first clients in Switzerland include international corporations and large public institutions.

Daniela Bach, Director at HTGF, says: “We invested in DemoSquare because data and AI can play an important role in bringing more transparency and predictability to lawmaking processes.”

“In today’s dense regulatory environment, this is crucial for both political and corporate stakeholders. We are excited to support Victor and Jérémi, who have the ideal academic and technical background to build this company.”

Briefly about investors

QBIT Capital, founded in Zurich by Georges Khneysser, is a VC firm focused on supporting Swiss startups. The firm partners with Active Investors and has partnered with industry experts such as Speedinvest Pirates and TiCapital. It focuses exclusively on Swiss companies, using its global network to leverage its portfolio.

High-Tech Gründerfonds (HTGF) finances technology startups with growth potential. It has supported more than 750 startups since 2005. With around €1.4 billion under management across four seed funds, HTGF focuses on high-tech startups in the fields of digital technologies, industrial technologies, life sciences and chemistry.

The fund has facilitated follow-on financing of around €6 billion and successfully completed the sale of more than 180 companies. Investors in the fund include the German Federal Ministry of Economics and Climate Action, KfW Capital and 45 industry companies.