Bondaval, a B2B fintech company, recently completed a €15 million Series A fundraising round. The London-based business wants to increase the confidence that credit teams have in the use of proprietary MicroBonds to safeguard their receivables.
A Series A round was used to generate the additional €15 million, bringing the total amount raised to date to €23.5 million. Participating in the round were current investors Octopus Ventures, Insurtech Gateway, TrueSight, and Expa.
Additional participants included new investors Talis Capital, FJ Labs, and Broadhaven Ventures. Thomas Williams, General Partner at Talis Capital, will also serve on the Bondaval board.
Bondaval is modernizing and streamlining B2B payment security. It was founded in 2020 by Sam Damoussi and Tom Powell, a former England Rugby Sevens player. With fresh capital now in hand, the business is prepared to move forward with its objectives to grow internationally, venture into new industries, and create more use cases for the platform.
Tom Powell, co-founder, and CEO: “We had no idea how rapidly the market would embrace our technology-driven approach to payment security when we started the company less than two years ago. We are honored by the faith that both new and existing investors have placed in us, as well as by the recognition from our best-in-class clientele. We anticipate expanding the availability of more benevolent financial security for all parties involved in B2B credit transactions and showcasing more uses for our MicroBonds.
Bondaval combines credit analysis technology with insurance backing that has an S&P A+ rating to produce a kind of receivables protection that is safer, capital-efficient, and affordable and that can be issued, renewed, and claimed digitally.
By fractionalizing the underwriting process and cost, the goal is to modernize and streamline B2B payment security. As a result, risks are addressed more thoroughly and in a wider range of applications.
The startup’s primary product at the moment is its MicroBonds, which are technology-enabled surety bonds that protect receivables and are simple to buy and manage through the Bondaval platform.
It is believed that MicroBonds can replace conventional payment security measures, such as bank guarantees and trade credit insurance, which frequently hurt customers’ balance sheets, don’t always offer full indemnity, and can be canceled without notice. MicroBonds primarily serve FTSE 100 and S&P 500 companies, such as Shell, BP, Highland Fuels, and TACenergy.
MicroBonds, on the other hand, are non-cancellable digital financial instruments that offer 100% indemnity, don’t require collateral, and can be utilized in conjunction with existing security. Users of the platform may rapidly put it up, aiding in process optimization and streamlining.
Additionally, unlike conventional collateral-based security, clients do not need to tie up capital to provide payment security to their suppliers with the use of MicroBonds. This can give them the much-needed cash they require at a time when business expenses are erratic and on the rise. Suppliers can deal with confidence and assurance because MicroBonds, unlike trade credit insurance, cannot be canceled and will offer 100% indemnity in the event of a default.
Bondaval has rapidly grown since launching in 2020, adding offices in London and Austin, Texas. This fresh capital will support the company’s efforts to expand its offerings while also propelling the next phase of global growth.
“What the Bondaval team has been able to achieve in its first couple of years is simply exceptional. Rarely do we observe this pace and care of execution, which is a tribute to the great team Tom and Sam are developing, along with the extraordinary demand for this product,” says Thomas Williams, general partner at Talis Capital.
Thomas continued, “Several revolutionary use cases are made possible by MicroBonds’ understated elegance, with the potential to significantly impact the credit market. Bondaval has boundless potential, and we are thrilled to collaborate with this elite group.”
“After supporting Bondaval early on and working with them, it’s more clear than ever that the team has both the caution and the pace to grow a category-defining firm in credit and insurance,” says Tosin Agbabiaka of Octopus Ventures.
“We are still in awe of Bondaval’s capacity to create this ground-breaking technology, add value to some of the biggest businesses in the world, and keep developing a world-class workforce. Therefore, it was a no-brainer for us to commit ourselves even more fully to helping the business at this next stage of its development,” Tosin further added.
Image Credit: Bondaval