BondAval raises $7 million
BondAval, the London-based insurance startup offering a new form of payment security, has secured a $7 million seed round led by Octopus Ventures. Additional investors include Expa, Insurtech Gateway, TrueSight Ventures, Tom Blomfield (Monzo co-founder), Charlie Delingpole (founder and CEO of ComplyAdvantage) and Matt Clifford (Entrepreneur First).
Founded in 2020, Bondaval is in the B2B credit security space, offering MicroBonds backed by A-rated insurers to replace bank guarantees and traditional collateral-based instruments. The product is currently live in both the UK and the US.
“We envision a world where the size of a business is no longer an inhibitor to it achieving its ultimate goals. We’re building the infrastructure to give businesses of any shape and size access to the most efficient forms of capital in real time. This funding round is yet another great point of validation for BondAval. The interest and support of all our investors – funds and angels alike – is rewarding in the fact that they all see the opportunity ahead of us. The capital raised will help us to continue hiring the best talent available. I’m proud of what this team has accomplished already and excited for the future.” – Tom Powell, CEO and co-founder of BondAval.
“BondAval is bringing a completely novel outlook to a space that has been crying out for innovation. MicroBonds are a revolutionary security instrument with clear benefits for both suppliers and merchants. They are also highly flexible. We are constantly validating new and innovative use cases, and this fundraise will provide us with the capacity to further roll out our product offering.” – Sam Damoussi, COO and co-founder of BondAval.
“For decades, companies looking to guarantee future transactions were forced to stomach high costs, significant collateral requirements, and a slow, analogue process. BondAval’s technology changes that, applying surety to micro B2B transactions to transform the cost structure of the product. This means that SMBs and industries across the world can now access collateral free, near-instant guarantees, and a significantly lower cost of working capital, all through a friction free user experience. The team’s depth of expertise here is remarkable, particularly for a business at this stage, and their execution to date has been outstanding. We are excited to support them in carving out a new market. The opportunity here is truly enormous.” – Tosin Agbabiaka, fintech investor at Octopus Ventures.
