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B2B Insuretech startup Bondaval raises $15M to invest in intellectual property

Photo Credit: Bondaval

Independent retailers frequently find inventory financing to be a difficult and drawn-out process that consumes their working capital. BondAval, an insuretech startup with locations in Austin, Texas, and London, is committed to assisting them in gaining access to better credit terms and assuring suppliers that they will receive payments on time.

The London-based startup has raised a $15M Series A Round, led by Talis Capital. Existing shareholders Octopus Ventures, Insurtech Gateway, TrueSight, and Expa, as well as new investors Talis Capital, FJ Labs, and Broadhaven Ventures, participated in the round. Talis Capital General Partner Thomas Williams will join Bondaval’s board of directors.

Bondaval plans to use the funds to continue building its best-in-class team, accelerate its global expansion, expand into new sectors and use cases for the platform, and invest in its market-leading intellectual property. Bondaval has now raised more than $25M in less than two years.

Bondaval was founded in London in 2020 by former England Rugby Sevens captain Tom Powell (CEO) and Sam Damoussi (Chief Underwriting Officer). By fractionalizing the underwriting process and cost, Bondaval’s proprietary technology can be used to modernise and simplify B2B payment security. This enables risks to be covered more thoroughly, quickly, and across a wider range of applications.

Tom Powell, co-founder and CEO, comments: ”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 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.”

“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,” adds Thomas Williams, General Partner at Talis Capital. “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.”

Credit analysis technology

Bondaval combines credit analysis technology with S&P 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 on a digital platform. MicroBonds, technology-enabled surety bonds that secure receivables and can be easily purchased and managed through the Bondaval platform, are the company’s main offering.

MicroBonds, which primarily serve FTSE 100 and S&P 500 companies such as Shell, BP, Highland Fuels, and TACenergy, replace traditional payment security methods such as bank guarantees and trade credit insurance, which can have a negative balance sheet impact for customers, do not always provide full indemnity, and can be cancelled without notice.

MicroBonds are non-cancellable digital financial instruments designed for credit managers in large commodities companies. They provide 100% indemnity, have no collateral requirement, can be used alongside existing security, and can be set up quickly using Bondaval’s simple platform.

Since its inception, Bondaval has grown its staff to 20 individuals, including the hiring of Jochen Duemler as the company’s Chief Underwriting Officer (CUO) North America, Yoel Marson as its CTO, and Charlie Evans as the company’s Chief Commercial Officer. Duemler previously served as CEO North America of the largest credit insurer in the world, Euler Hermes (now Allianz Trade). Veronika Ostreyko, COO, and Dr. Lei Zhong, Head of Data Science, both came from Funding Circle where they built, launched, and scaled new credit products. They both joined Bondaval.

The team has grown to 20 members, who represent 12 different nationalities, and is now split between two offices in Austin, Texas, and London, the United Kingdom.

Founders’ background

Sam Damoussi, chief operating officer, and Tom Powell, chief executive officer, met while working for one of the biggest surety providers in New Zealand. At the start of the pandemic in 2020, they made the decision to introduce Bondaval.

Tom has a wealth of leadership experience in both the business and sporting worlds. He served as England’s international rugby sevens captain and has worked in the financial services and technology investment sectors. Sam has established and launched two previous A-rated fuel bond programmes as an MGA and insurer. Sam has over ten years of experience as a surety and growth specialist for insurance-backed bonds.

Returning investor Tosin Agbabiaka, from Octopus Ventures, added, “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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