B2B fintech Bondaval raises $15 million in Series A funding round

London-based B2B fintech Bondaval has raised $15 million in a Series A round, led by Talis Capital.

Investors in the round include existing shareholders Octopus Ventures, Insurtech Gateway, TrueSight and Expa, as well as new investors Talis Capital, FJ Labs and Broadhaven Ventures.

Bondaval explains that they will use the funding to continue building their team, develop their global expansion and increase growth into more sectors. Bondaval has now raised more than $25 million since its inception.

The firm was founded in London in 2020 by former England Rugby Sevens captain Tom Powell, Managing Director, and Sam Damoussi, Chief Underwriting Officer.

Bondaval proposes that its proprietary technology can be used to modernize and simplify B2B payment security by fractionalizing the underwriting process and costs, enabling risks to be covered more comprehensively, quickly and across multiple applications.

The company combines credit analysis technology with S&P A+ rated insurance backing to create a secure, capital-efficient and cost-effective form of debt protection that can be issued, renewed and collected digitally.

The firm’s key offering is MicroBonds, technology-enabled surety bonds that secure receivables and can be easily purchased and managed through the Bondaval platform.

Powell commented: “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 trust of our existing investors and our new investors and the validation from our best 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 .”

Thomas Williams, General Partner at lead investor Talis Capital, who will also join Bondaval’s board, added: “What the Bondaval team has been able to achieve in the first couple of years is truly remarkable. We rarely see this pace and care in execution, which is a testament to the talented team that Tom and Sam are putting together, coupled with exceptional demand for this product.

“The simple elegance of MicroBonds unlocks several transformative applications, 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.”

Returning investor Tosin Agbabiaka, of Octopus Ventures, said: “Having backed Bondaval early on and worked alongside 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. Hence our decision to double down on support for the company in this next phase of the journey a simple matter.”

Since its launch, Bondaval has expanded its team to 20 people, including the addition of Jochen Duemler, formerly CEO of North America at the world’s largest credit insurer Euler Hermes (now Allianz Trade), as the company’s Chief Underwriting Officer (CUO) North America, Yoel Marson, former director of engineering at Yahoo! Answers, as CTO, and Charlie Evans as the company’s Chief Commercial Officer.

COO, Veronika Ostreyko, and Head of Data Science, Dr Lei Zhong, both joined Bondaval from Funding Circle where they built, launched and scaled new credit products.

Bondaval is spread across Europe and the US, and has offices in both London and Austin, Texas.