An automated foreign exchange risk management platform which protects clients against volatile currency markets will this week announce a funding injection of almost $25m.
Sky News understands that Bound, which was founded in 2021 by Seth Philips and Dan Kindler, has landed the new backing in a Series A round led by AlbionVC, a prominent venture capital investor.
The round will also include participation from Notion Capital and GoHub, as well as existing investors in the company.
Bound says it offers fast, transparent and automated FX hedging technology solutions which it claims “empower finance teams to perform like currency trading experts”.
The perils of turbulent currency markets were underlined last year when London-listed FX group Argentex collapsed amid the turmoil triggered by President Trump’s global tariffs war.
Bound, which traded close to $2bn last year, said it would use its new funding to pursue regulatory authorisation in the EU as the prelude to expansion on the Continent.
“The world is in a genuinely volatile state, and we don’t believe we’re heading back into a period of stability anytime soon,” Mr Philips, Bound’s chief executive, said.
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“Exchange rate volatility has never been higher, and most businesses feel that whether they realise it or not.
“One of the most immediate ways that instability shows up is through currency markets.
“You can be running a healthy UK business with U.S. customers, and overnight, a social media post can cause currencies to fluctuate and significantly impact your business’s margins.”
Bound cited fashion retailers with large global purchasing requirements, venture capitalists investing across regions or production companies with global location needs as examples of the types of businesses susceptible to currency risk.
“Currency volatility has become a structural challenge for modern businesses, not a short-term anomaly,” said Jay Wilson, a partner at AlbionVC.
“What impressed us about Bound is its clear understanding that FX risk management shouldn’t be reserved for multinational corporates with specialist treasury teams.
“FX risk management is an industry reliant on many legacy systems and is therefore ripe for disruption.”
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Bound, which is based in London, did not disclose the valuation secured in its new funding round.
