Hokodo, a UK and France based fintech startup, has been awarded €2m by Horizon 2020, the funding program for research and innovation run by the European Commission.
The grant will enable the company to launch invoice protection and HokoScore in France and Germany within the next 12 months, as well as to develop two new trade credit products for the SME market, which are due to go live by the end of 2019.
Co-founded by Richard Thornton, former CRO and COO at Aspen Insurance, along with Louis Carbonnier and Sami Ben Hatit, former CEO and CTO of Euler Hermes’ digital practice, Hokodo maks invoice insurance accessible for SMEs in two ways.
Firstly, it has applied data science and machine learning to enable SMEs to protect single invoices, rather than having to insure their entire turnover, as required by traditional providers.
Secondly, using APIs, Hokodo is distributing its products via the platforms that SMEs use on a daily basis, such as accounting, invoicing or sales tools – in much the same way as travel insurance is offered on airline websites.
The company launched its technology in the UK in October 2018 and has already established a range of partnerships, including one with Centrifuge, a trade finance platform and CountingUp, the challenger bank. Hokodo has also developed its own credit scoring algorithm, HokoScore, allowing businesses to check the credit ratings of their clients and suppliers, and make informed decisions about credit terms and the need for invoice protection.
The company previously raised €2.1m of seed funding in a round led by Anthemis.