Frankfurt start-up LegalTegrity closes financing round of one million euros
Whistleblowers who uncover misconduct in their own company — often also called whistleblowers — have an important role: They are like an “early warning system” and can protect their employer from scandals and legal violations and thus protect their reputation true. Often whistleblowers are not yet adequately protected. The Frankfurt start-up LegalTegrity has developed a secure software-as-a-service solution to significantly simplify whistleblower protection — especially for medium-sized businesses. Small and medium-sized enterprises (SMEs) can easily integrate the solution into their workflows and corporate processes.
As a plug & play solution, the LegalTegrity application is available without complex IT integration and can be used immediately after booking. It can be reached via a link on any internet-enabled device and is GDPR-compliant and secure in the Deutsche Telekom cloud. Dr. Thomas Altenbach, CEO and founder of LegalTegrity explains: “Whistleblower solutions are a real opportunity for companies and are necessary to run companies successfully over the long term. They promote transparency and increase trust in the management. We want to support companies with our simple and uncomplicated solution — it improves the corporate culture and at the same time protects whistleblowers. This lowers the threshold to report observed misconduct. This in turn reduces the business risk for companies. “
LegalTegrity was founded in September 2019 and currently has a customer base of around 20 companies. These include several renowned law firms that rely on the compliance expertise of Dr. Thomas Altenbach trust companies, including a law firm with more than 500 lawyers. The company has just completed its first round of financing. LegalTegrity received 400,000 euros from BM H Beteiligungs-Managementgesellschaft Hessen mbH through the investment fund Hessen Kapital III (EFRE) GmbH, which it manages, as well as 600,000 euros from private and institutional investors such as DLE Holding AG.
Stephan Groß Beteiligungsmanager at BM H Beteiligungs-Managementgesellschaft Hessen mbH: “With our investment, we expressed our trust in LegalTegrity because they convinced us as a digitally innovative start-up with their concept for a practicable and marketable solution for whistleblower protection. In this way, companies can lower their risks and position themselves stable for the future. For a young start-up, the founding team has a lot of expertise, which is reflected in the very secure solution for SMEs. We therefore recommend LegalTegrity to our portfolio companies as well. “
“Together with our partners and investors, we are pursuing an important goal: to make whistleblower protection easy to implement for small and medium-sized companies. With the investments we will continuously drive product optimization for our customers and further expand our sales ”, emphasizes Dr. Thomas Altenbach, CEO of LegalTegrity.
The EU Whistleblower Directive came into force on December 16, 2019. The directive obliges all companies across the EU with more than 50 employees or with a turnover of 10 million euros or more to create a secure way for them to report misconduct in the company by December 2021. Experts and observers now fear a similar level of uncertainty as with the introduction and implementation of the EU GDPR. Especially SMEs that have neither the human nor the financial resources are faced with a major challenge.
However, by using whistleblower software, SMEs can protect themselves easily and reliably. This enables you to implement the requirements of the EU Whistleblower Directive without great effort or intervention in the IT structure. In addition, such a solution will protect you from scandals and legal violations and at the same time guarantee whistleblowers protection and anonymity.
LegalTegrity’s whistleblower solution works like a digital locker accessible from two sides. Employees of the company receive a code before submitting a notice and set their own PIN. You need both to log into the locker in the future. To ensure your anonymity, no personal data is collected when you log in. Employees can submit a notice by phone or online.
A responsible person in the company or an external responsible person who receives the second access to the locker will check this information. LegalTegrity’s solution ensures that every report is followed up and the whistleblower is informed of the status of the report.