A British Insurtech company which provides protection against payment default has secured backing from one of Europe's leading venture capital firms.
Sky News understands that Bondaval, which was founded in 2020 Tom Powell and Sam Damoussi, has struck a deal to raise close to £15m from investors led by Dawn Capital, an early backer of iZettle, Quantexa and Tink.
The new capital will be used to facilitate the launch of a reinsurance vehicle called Bondaval Re, which will diversify the start-up beyond its current status as a managing general agent.
Bondaval operates in more than 30 countries, and has offices in London, New York and Dallas.
Existing investors in the company, including Octopus Ventures, also participated in the funding round.
"Launching Bondaval Re will provide a scalable solution with which to support the company's continued growth, as well as to prepare for further planned expansion," said Ewa Rose, Bondaval's chief underwriting officer.
"By creating a close alignment of risk between Bondaval and our stakeholders, we demonstrate our long-term investment and commitment to the business, and confidence in the calibre of our underwriting."
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The new reinsurance vehicle will allow Bondaval to partner with reinsurers as well as insurers, providing a new market for its technology.
Dan Chaplin, a partner at Dawn Capital, said: "Bondaval is combining innovation at the insurance product level with a technology platform that enables greater transparency and granularity in underwriting.
"This is expanding the addressable market of risk that can be protected, and we believe will play an important role in securing the fast-growing economy of global trade."
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