BondAval raises £5.1m in seed funding led by Octopus Ventures to scale its payment security platform.
Octopus Ventures led the seed round to support international expansion and platform development.
BondAval is an insurtech startup that provides a novel form of payment security for supply chains through proprietary MicroBonds. The company operates in both the UK and the US.
BondAval has secured £5.1m in a seed funding round led by Octopus Ventures. The capital will be deployed to expand teams in the UK, US, and new markets, as well as to scale its proprietary platform. Additional backing for the round came from Expa, Insurtech Gateway, TrueSight Ventures, and notable angel investors.
Founded in 2020, the insurtech startup provides investment grade payment security to improve working capital solutions in supply chains. Its MicroBonds are backed by A-rated insurers and designed to help businesses of any size guarantee payments. The company is currently live in the UK and the US.
From the founder
"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 at BondAval
Investor perspective
"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
Octopus Ventures
Use of funds
- 01Grow the team
- 02Continue product development
- 03Expand into international markets
