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Insurtech startup Bondaval raises £12m

Bondaval Series A
Image credit: Bondaval

London-headquartered B2B insurtech startup Bondaval is looking to expand into new international markets following a $15m (£12.1) Series A.

Its insurance product is built on “MicroBonds”, a surety bond that can take the place of legacy security options. Unlike existing options such as bank guarantees and trade credit insurance, MicroBonds cannot be cancelled and provide full indemnity.

“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,” said Tom Powell, co-founder and CEO of Bondaval.

Money from the Series A investment will further be spent by Bondaval on hiring and expanding into new verticals.

Bondaval was founded in 2020 by CEO and ex-England Rugby Sevens captain Tom Powell and chief underwriting officer Sam Damoussi.

London-based VC firm led Talis Capital led Bondaval’s Series A with support from Octopus Ventures, Insurtech Gateway, TrueSight, Expa, FJ Labs and Broadhaven Ventures.

“The simple elegance of MicroBonds unlocks several transformational use cases, which have the potential to fundamentally alter credit markets,” said Thomas Williams, general partner at Talis Capital, who joins Bondaval’s board.

Previous investors in the insurtech startup include Monzo co-founder Tom Blomfield, Entrepreneur First co-founder Matt Clifford and ComplyAdvantage founder Charlie Delingpole.

“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,” said Tosin Agbabiaka, early-stage investor at Octopus Ventures.

The Series A brings adds to Bondaval’s total funding to $23.3m (£18.83m), according to Dealroom.