Sonovate raises £20m in capital funding
Sonovate has raised a £5m Series A funding round led by Dawn Capital and supported by DN Capital, with a further £15 million in debt funding provided by Shawbrook Business Credit.
Richard Prime and Damon Chapple, former directors of a FTSE 250 recruitment agency, launched Sonovate to provide high-tech working capital solutions to UK recruitment companies.
Sonovate co-CEO and co-founder, Richard Prime, commented, “Recruitment companies have always been early adopters of technology: they were quick to see the potential of platforms like LinkedIn, and firms like Reed have been active online for almost 20 years now.
“But as eager as the industry is to reinvent itself for the modern era, finance and the associated technology is yet to catch up. Agencies providing contract solutions have relied on outdated, inflexible bank products which don’t provide the automation and technology that agencies are crying out for.
“We launched Sonovate to overcome this challenge. This capital investment will help us develop our product, expand our team, and launch into new territories including mainland Europe and North America over the next year.”
Josh Bell, partner at Dawn Capital who will also join the Sonovate board, said, “Recruitment agencies in the UK and across the globe face many unnecessary obstacles when it comes to securing working capital – and Sonovate is the global leader for companies using technology to make working capital available in a seamless, automated way.
“Finance for recruitment agencies is a large, fast-growing market: the global recruitment sector is worth $350 billion annually, expected to expand by a further 7% in 2016. The UK alone is set to grow 6%. The rise in flexible and contract work – there are 11m contractors in the US alone – has increased appetite for a solution like that offered by Sonovate.
“There’s more opportunity in recruitment and the wider contingent staffing sector than ever before, and Sonovate is well-placed to seize it. The company has a great product, a reputation for excellent customer service, and is in a strong position to make an impact internationally.
“The UK is a world-leader in fintech and we firmly believe that Europe will continue to produce strong global competitors in the technology field. Dawn Capital is delighted to lead the Series A investment in Sonovate.”