London-based Bondaval, a B2B insurtech company, announced on Wednesday that it has raised $15M (approximately €14M) in a Series A round of funding led by Talis Capital. This brings the total funding raised by the company to $25M (approximately €23M).
Other investors in the round include existing shareholders Octopus Ventures, Insurtech Gateway, TrueSight, and Expa, and new investors Talis Capital, FJ Labs, and Broadhaven Ventures.
As a part of the funding round, Thomas Williams, General Partner at Talis Capital, will join Bondaval’s board.
The UK company says it will use the funds to build teams, accelerate global expansion, expand into additional sectors and use cases for the platform, as well as invest in its market-leading intellectual property.
Tom Powell, co-founder and CEO, says, ”When we first established the business less than 2 years ago, we could only imagine how quickly the market would respond to our technology-led approach for payment security. We are honoured by the confidence shown by our existing investors and our new investors and the validation from our best-in-class clients. We look forward to increasing access to more favourable financial security for all parties involved in B2B credit transactions and demonstrating more applications for our MicroBonds.”
Bondaval: What you need to know
Founded in 2020 by former England Rugby Sevens captain Tom Powell (CEO) and Sam Damoussi (Chief Underwriting Officer), Bondaval simplifies B2B payment security by fractionalising the underwriting process and cost, making it possible to cover risks more across more applications.
The company combines credit analysis technology with S&P A+ rated insurance backing to create a more secure, capital-efficient, and cost-effective form of receivables protection that can be issued, renewed and claimed digitally.
The company’s key offering is MicroBonds, a technology-enabled surety bond that secures receivables and can be easily purchased and managed through the Bondaval platform.
Primarily serving FTSE 100 and S&P 500 companies, including Shell, BP, Highland Fuels, and TACenergy, MicroBonds replace traditional payment security methods, including bank guarantees and trade credit insurance, which can come with a negative balance sheet impact for customers.
Bondaval says its MicroBonds does not require customers to tie up capital to provide payment security to their suppliers. It can provide them with much-needed liquidity when business costs are unpredictable and rising, says the company.
Investor
Talis Capital is a London-based VC that supports and invests in early-stage technology companies. The VC has invested over $600M worth of transactions since 2009, and its portfolio includes Darktrace, Onfido, iwoca, Pirate Studios, Luminance, Threads, Ynsect, and Oh My Green.
“What the Bondaval team has been able to achieve in its first couple of years is truly remarkable. We rarely see this pace and thoughtfulness of execution, which is a testament to the talented team that Tom and Sam are assembling, combined with exceptional demand for this product,” says Thomas Williams, General Partner at Talis Capital. “The simple elegance of MicroBonds unlocks several transformational use cases, which have the potential to fundamentally alter credit markets. We see limitless potential for Bondaval and are delighted to partner with this world-class team.”
Tosin Agbabiaka, from Octopus Ventures, says, “After backing Bondaval early on and working alongside them, it’s more evident than ever that the team has both the prudence and the pace to build a category-defining business in credit and insurance. We continue to be impressed by Bondaval’s ability to develop this innovative solution, drive value to some of the largest companies in the world, and continue building an exceptional team. Therefore, our decision to double down on supporting the company in this next stage of its journey was a no-brainer.”
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