SCOR-backed insurtech Hokodo raises €1.9m seed funding
Hokodo, a London and Paris-based technology startup that recently partnered with reinsurer SCOR for its launch product, has raised €1.9 million in seed funding.
The seed round was led by Anthemis, a European venture capital firm focused on fintech and insurtech investments.
Hokodo serves B2B marketplaces and accounting platforms with small business insurance via easy-to-integrate APIs (application programming interface). The company recently partnered with SCOR Global P&C for its launch product, an invoice protection solution insuring small and medium-sized business owners against the risk that their customers fail to pay an invoice when it falls due.
Richard Thornton, one of Hokodo’s founders said: “Late payment of invoices is one of the leading causes of small business failure across Europe. In the UK, the Federation for Small Business estimates that about 30 percent of insolvencies are caused by the non-payment or late payment of receivables. The traditional insurance industry has commercial products to address this problem, however those products are not available to small and medium sized businesses.”
Co-founder, Louis Carbonnier added: “When two businesses trade with each other, they are exposed to all sorts of risk—goods in transit; professional liability; liquidity; or performance risks—and Hokodo plans to help mitigate all those risks through Insurance-as-a-Service solutions.”
“Following our announcement last month of our underwriting partnership with SCOR Global P&C’s Channel syndicate, this fundraising round leaves us perfectly positioned to execute on our vision,” Carbonnier said.
Ruth Foxe-Blader, director at Anthemis, commented: “Traditional FS providers cannot fully service online marketplaces, accounting platforms and other SME-focused technology businesses. In Hokodo we have found a team that really understands how to bridge the gap between insurance and technology. In our view, Hokodo’s robust, compliant tech stack and simple APIs represent a great idea whose time has come.”
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