Why We Invested: Hokodo

I am thrilled to announce Anthemis’ most recent insurtech investment: Hokodo. Their first act is single-invoice credit risk insurance.

If you ask the Hokodo team, they’ll tell you this:

We’re a startup that uses innovative technology to develop B2B insurance and finance solutions that can be deployed seamlessly into the platforms that companies use on a daily basis (like marketplaces or accounting packages). Thanks to our developer-friendly APIs, B2B platforms have an easy way to expand the range of services that they offer to their users. At the same time, insurers and financing partners enjoy access to a cost-efficient way to source attractive risks. From a legal standpoint, we’re a Lloyd’s coverholder that operates as an MGA; we’ve just announced a partnership with SCOR Global P&C.

If you ask me, there is nothing more exciting than securing SME commerce, which addresses pain points for the smaller businesses that drive global trade and facilitate every economy (for more on this, see our investments in Fluidly and Tide). 60% of economic activity in the EU and the US is attributable to SMEs, but more than 90% of SMEs are not insured today.

SMEs are a tough-to-address market segment because it is as diverse a category as it is vast. Despite this diversity, SMEs everywhere are challenged by one overwhelming concern: stable cash flow. Hokodo is closing the SME protection gap, first by ensuring cash flow stability through a simple, comprehensive and comprehensible insurance product purchased with the tick of a box. And it’s buttressed by the full force of a robust, compliant tech stack and simple APIs, a great idea whose time has come.

But ideas are nothing without an outstanding execution engine, and Hokodo is building one. This crack team represents risk and underwriting know-how, credit risk insurance expertise and deep roots in tech product design. Trade finance sits at the intersection of insurance and banking, and the team speaks both of those languages. And Hokodo is international and diverse, just like the SMEs they need to reach with their product suite. No wonder they’ve achieved more in a few months than many do in years.

Great companies can always find money. Louis, Richard and Sami are a killer founding team and I’m grateful to be along for this ride with them. It’s always an intense battle to the top. Wish us luck!