Scaleout Systems Secures €1.5M Seed Funding for Advanced Federated Machine Learning, Prioritizing Data Security and Privacy in AI


  • Uppsala-based Scaleout Systems secures €1.5M seed funding for their pioneering federated machine learning technology.
  • Investors include Navigare Ventures, SEB’s Utvecklingsstiftelse, Almi Invest, and Uppsala University Invest.
  • Scaleout Systems specializes in AI development without transferring sensitive data, enhancing data security and privacy.
  • Funding to be used for technology advancement, market expansion, and maintaining a leading role in AI, with a focus on federated machine learning.
  • Scaleout Systems’ technology allows machine learning without transferring sensitive data, including private user data, medical images, and sensor data.
  • Industry expert Ebba Kraemer highlights the importance of enabling AI on decentralized data sources.
  • The company offers a unique blend of security, scalability, and advanced AI technology.
  • Navigare Ventures sees Scaleout’s federated machine learning as a key enabler for scalable, future-proof AI.

Main AI News:

Uppsala-based Scaleout Systems, a pioneer in federated machine learning technology, has successfully secured a substantial seed funding round amounting to €1.5 million (17.2 million SEK). This investment has drawn the attention of prominent investors, including Navigare Ventures, owned by Wallenberg Investments AB, SEB’s Utvecklingsstiftelse, Almi Invest, and Uppsala University Invest. Scaleout Systems specializes in developing cutting-edge federated machine learning technology, a breakthrough approach that allows AI development without the need to transfer sensitive data sources, such as private user data, medical images, or autonomous vehicle sensor data.

The infusion of capital will play a pivotal role in advancing Scaleout Systems’ unique technology, expanding its market presence, and solidifying its leadership position in the field of AI development. The primary focus remains on advancing federated machine learning capabilities, safeguarding data integrity, and upholding personal privacy.

Andreas Hellander, CEO of Scaleout Systems, articulated the significance of this funding round, stating, “This seed round marks a crucial milestone for us. It not only provides the resources needed to enhance our technology but also allows us to extend our reach in the market. Our aim is to continue spearheading AI development, particularly in the domain of federated machine learning.”

Scaleout Systems’ revolutionary technology empowers machine learning in scenarios where the transfer of essential data sources for AI model training is complex, illegal, or inappropriate. Their solution is universally effective, irrespective of the nature of the training data – whether it involves private user data from mobile devices, diagnostic images from healthcare institutions, or sensor data from autonomous vehicles.

Ebba Kraemer, formerly a product strategist at Google and now the Commercial Manager at Scaleout Systems, shed light on market dynamics, saying, “We observe a growing demand among companies to enable AI on decentralized data sources. A key driving force is the substantial volume of data being collected locally, at the ‘edge,’ particularly in areas such as industrial IoT and autonomous vehicles. Simultaneously, the emphasis on personal privacy and data security has surged, as individuals lead increasingly interconnected lives, and regulations governing data handling become more stringent.”

Scaleout Systems’ ability to seamlessly merge security and scalability with advanced AI technology positions the company as a trailblazer in next-generation AI solutions. Users can harness the power of machine learning without compromising data security and personal privacy, aligning perfectly with the evolving needs of modern businesses.

Salla Franzén from Navigare Ventures underscored the strategic importance of Scaleout’s federated machine learning framework, stating, “Scaleout’s framework for federated machine learning is a pivotal enabler for realizing the true potential of AI. The team’s strong foundation in research, technical expertise, and well-defined business strategy makes us at Navigare Ventures enthusiastic about our investment. We eagerly anticipate assisting various industrial sectors and research groups in addressing a critical aspect of scalable, future-proof AI.


The substantial seed funding obtained by Scaleout Systems signifies a significant step towards advancing federated machine learning while ensuring data security and privacy. This development reflects a growing industry need to harness AI on decentralized data sources, particularly in fields like industrial IoT and autonomous vehicles. Scaleout Systems’ ability to merge security and scalability with cutting-edge AI positions them as a market leader, catering to the evolving demands of businesses and research groups in an era where data privacy and efficient AI are paramount.