Bondaval raises $15mn to combine credit and insurance

UK-based startup Bondaval, which combines credit analysis technology with A+ rated insurance backing, has raised US$15mn in funding to continue its growth

UK-based Bondaval has raised US$15mn in Series A funding from investors including Octopus Ventures, Insurtech Gateway, Talis Capital and TrueSight.

The company combines credit analysis technology with 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 flagship products are its MicroBonds, technology-enabled surety bonds that secure receivables and can be purchased and managed through Bondaval’s platform.

Mainly aimed at FTSE 100 and S&P 500 companies, the MicroBonds replace traditional payment security methods – including bank guarantees and trade credit insurance – which can come with a negative balance sheet impact for customers, don’t always offer full indemnity, and can be cancelled without notice.

Bondaval intends to use the capital raised to build out its team, continue its global expansion and expand into additional sectors and use-cases for its platform. The London-based company has raised more than US$25mn to date, despite only being founded in 2020.

Bondaval ‘honoured by confidence shown’ by investors

Tom Powell, Co-Founder and CEO of Bondaval, says: ”When we first established the business less than two 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.”

Talis Capital General Partner Thomas Williams, who will take a seat on Bondaval’s board as part of the latest round, says: “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.”

Tosin Agbabiaka, Early Stage Investor at Octopus Ventures, adds: “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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