Hokodo, an insurance and finance API developer, has raised €1.9m in a seed round led by Anthemis.
Through the equity round, the company hopes to expand its data science, technology and finance expert teams. Capital will also be used to develop its technology, create new APIs and launch new insurance products.
London-based Hokodo develops insurance products at the point of sale in order to help protect companies operating in B2B trade. The company delivers its insurance solutions are delivered through APIs to integrate with existing accounting platforms, online marketplaces and other platforms.
In doing this, platforms can embed insurance protection in existing customer journeys and easy the day-to-day activities of businesses.
The company’s initial product its an invoice protection solution which insures small and medium business owners against the risk their customers will not pay invoices by due dates.
Richard Thornton, one of Hokodo’s founders stated: “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% 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.”
There are plans to launch a number of other insurance protection to cover risks such as ‘goods in transit; professional liability; liquidity; or performance risks’, according to the company.
Last week, Anthemis took part in the $7m Series A round of alternative asset investing mobile app Rally Rd. The company gives consumers the power to invest into rare alternative assets, with the initial assets available being blue chip collectible cars.
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