B2B Fintech Startup Raises $15 Million From Talis Capital

• London-based fintech BondAval has raised $15 million in Series A funding.
• The startup provides credit insurance through its proprietary “MicroBonds.”
• The company wants to expand its presence in Europe and the USA with the new capital.

A UK fintech startup founded by a former professional rugby player has raised $15 million in Series A funding.

London-based BondAval, established in 2020, provides credit security for companies such as Shell and BP through a digital platform. The startup offers “MicroBonds” that replace bank guarantees and other traditional security instruments. Microbonds are backed by insurance companies with a high credit rating and act as non-cancelable credit instruments for businesses looking for increased payment security.

In short, the company offers an alternative to expensive supply chain and B2B financing options such as trade credit insurance, which often have negative balance sheet implications for customers.

“We decided to raise the Series A with 27 months of runway again, which is an unusual step,” Tom Powell, BondAval’s co-founder and CEO, told Insider. “However, the fact that we had achieved both our seed targets and product market fit earlier than expected, combined with our view that the market will be more uncertain in the next few years, confirmed our decision to go to market early.”

The Series A round was led by Talis Capital, which was joined by new and existing investors including Octopus Ventures, Insurtech Gateway, TrueSight and Expa, FJ Labs and Broadhaven Ventures. The funding will go towards expanding the company’s credit risk decision engine, as well as expanding BondAval’s presence in both Europe and the US from the Austin office.

The current macroeconomic climate may cause traditional credit insurers to pull coverage from their customers, Powell said.

“While this will be protective for insurers in some cases, in others they may end up penalizing excellent credit teams for a macro environment beyond their control,” he said.

“For these high-performing teams, BondAval’s non-cancelable security and advanced counterparty guarantee have added appeal. Of course, our commercial approach must always be matched by sound underwriting; being well capitalized allows us to continue to make the right decisions.”

BondAval declined to share its new valuation, but claimed it was a “step up” from the company’s seed round. The business has now raised more than $25 million to date.

Check out the BondAval deck with 13 slides used below: