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 it will utilise the financing to continue building its team, progress its global expansion, and augment its growth into additional 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, CEO, and Sam Damoussi, Chief Underwriting Officer.
Bondaval suggests that its proprietary technology can be used to modernise and simplify B2B payment security by fractionalising the underwriting process and cost, making it possible to cover risks more comprehensively, expeditiously, and across more 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 receivables protection that can be issued, renewed and claimed-on digitally.
The firm’s key offering is its 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 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.”
Thomas Williams, General Partner at lead investor Talis Capital, who is also set to join Bondaval’s board, added, “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.
“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.”
Returning investor Tosin Agbabiaka, from Octopus Ventures, said, “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.”
Since launching, Bondaval has expanded its team to 20 people, including the addition of Jochen Duemler, former CEO North America of 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 its 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 were building, launching and scaling new credit products.
Split across Europe and the United States, Bondaval has offices in both London and Austin, Texas.
