London-based Bondaval, a B2B insurance company, announced on Wednesday that it has raised $15 million (about €14 million) in a Series A funding round 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.
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As part of the financing round, Thomas Williams, General Partner at Talis Capital, will join Bondaval’s board.
The British company says it will use the funds to build teams, accelerate global expansion, expand into more sectors and use cases for the platform, as well as invest in 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 to payment security. We are honored by the confidence of our existing investors and our new investors and the validation from our best-in-class customers. We look forward to increasing access to more favorable 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 fractionalizing the underwriting process and costs, allowing risks to be more broadly covered of several applications.
The company combines credit analytics technology with S&P A+-rated insurance backing to create a more secure, capital-efficient and cost-effective form of debt 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.
MicroBonds primarily serve FTSE 100 and S&P 500 companies, including Shell, BP, Highland Fuels and TACenergy, and replace traditional payment security methods, including bank guarantees and trade credit insurance, which can have a negative balance sheet impact for customers.
Bondaval says its MicroBonds do not require customers to tie up capital to provide payment security to their suppliers. It can give them much-needed liquidity when business costs are unpredictable and rising, the company says.
Investor
Talis Capital is a London-based VC that supports and invests in early-stage technology companies. The VC has invested over $600 million in 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 the first couple of years is truly remarkable. We rarely see this pace and thoughtfulness in execution, which is a testament to the talented team that Tom and Sam are putting together, combined with exceptional demand for this product,” said Thomas Williams, General Partner at Talis Capital. “The simple elegance of MicroBonds unlocks several transformative use cases, which have the potential to fundamentally change credit markets. We see unlimited potential for Bondaval and are excited to partner with this world-class team.”
Tosin Agbabiaka, of Octopus Ventures, says: “Having backed Bondaval early on and worked with them, it is clearer than ever that the team has both the acumen 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 to build an exceptional team. Therefore, our decision to double down on our support for the company in this next phase of its journey was a no-brainer.”
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