Supply Chain-Focused Insurtech Startup BondAval Lands $7M from Octopus Ventures

Supply Chain-Focused Insurtech Startup BondAval Lands $7M from Octopus Ventures

Inventory finance may be a difficult and time-consuming procedure for small businesses, tying up their cash flow. BondAval, a London-based insurtech firm with operations in Austin, Texas, focuses on assisting them in obtaining better credit terms while assuring suppliers that they will be paid on time. Octopus Ventures led the $7 million round, with participation from Expa and returning investors Insurtech Gateway, TrueSight Ventures, and founders including Tom Blomfield of Monzo and GoCardless, Charlie Delingpole of ComplyAdvantage, and Matt Clifford of Entrepreneur First.

MicroBonds, the company’s main product, is now available in the United States and the United Kingdom. Micro bonds are non-cancellable exposure coverage plans that employ a credit risk engine, do not require collateral, and are accessible nearly quickly online as an alternative to traditional bank guarantees and collateral-based instruments, which can take months to arrange. 

Merchants to ensure that they will complete a contract with a wholesaler to purchase MicroBonds. If a merchant has to submit a claim, it is processed and paid out relatively instantly, lowering the risk to their business.

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Supply Chain-Focused Insurtech Startup BondAval Lands $7M from Octopus Ventures

Tom Powell and Sam Damoussi, who think that providing all businesses, regardless of size, with inexpensive investment-grade payment security may strengthen the whole supply chain, allowing SMEs to compete more fairly with major enterprises, founded BondAval in 2020. Arch Capital Group and Hamilton Insurance Group in the United States and Hamilton and Beat Capital Insurance Services in the United Kingdom back MicroBonds.

BondAval will utilize the fresh capital, which takes its total raised to $9 million, to expand its business, hire more employees, and improve its technology and provisioning services. “For decades, organizations wishing to guarantee future transactions were obliged to stomach hefty prices, large collateral requirements, and a lengthy, analogue process,” Octopus Ventures fintech investor Tosin Agbabiaka said in a statement. BondAval’s solution alters this by bringing certainty to tiny B2B transactions, transforming the product’s cost structure.

Octopus is a next-generation omni-channel retail solution that gives your customers a complete experience. We offer a strong and adaptable retail management system that knows your business and plans for future expansion. We provide a user-friendly interface with a wealth of advanced capabilities that puts control and administration of your business in your hands.

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