Scaleout Systems, an innovator in federated learning solutions, has raised 35 MSEK in its latest funding round to accelerate its AI technology development and expand its presence in the cloud-edge computing market. The round brings together strong support from existing investors and welcomes Fairpoint Capital as a new strategic investor and co-lead alongside Navigare Ventures.
With this new funding, Scaleout will continue its mission to transform how organizations build and deploy AI across the cloud-edge continuum while keeping sensitive data secure and local. As organizations face growing challenges with increasing data generation at the edge and real-time processing needs, particularly in industrial IoT, automotive, and defense sectors, the company plans to expand its market presence and enhance its federated learning framework, FEDn. This unique solution enables seamless AI operations from central cloud to edge devices, bridging the gap between local development and full-scale deployment of federated learning applications.
"This investment validates our vision for distributed AI that operates seamlessly across the cloud-edge spectrum," says Andreas Hellander, CEO of Scaleout Systems. "As organizations generate increasing volumes of data at the edge, traditional centralized approaches are reaching their limits. Having Fairpoint Capital join our group of investors brings not just capital, but deep expertise in scaling B2B technology companies, particularly in the Nordic region."
Fairpoint Capital, with its track record of backing innovative B2B technology companies, brings valuable experience in scaling AI, IoT, and cloud solutions. Their decision to invest alongside existing backers signals strong confidence in Scaleout's approach to solving the growing challenges of real-time edge AI deployment while maintaining data sovereignty.
We're grateful for the continued trust and support from our existing investors Navigare Ventures, ALMI Invest, Uppsala University Invest, the Beijer Foundation, Mikael Johnsson, Michael Lantz, and Fredrik Wallsten who have been instrumental in our growth journey. Their continued commitment, together with Fairpoint Capital's new investment, positions us strongly for our next phase.
This new backing reinforces Scaleout's position at the forefront of next-generation AI, where advanced machine learning meets the demands of modern distributed computing environments. The company remains focused on its core mission: enabling collaborative AI development that seamlessly spans from cloud to edge while putting data sovereignty and security first.
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