Sonovate closes £5m to help recruitment agencies access finance
Startups 100-featured company will use Series A funding to launch into new territories including Europe and the US
Sonovate, an early-stage finance provider for recruitment agencies placing contractors, has announced the completion of a £5m Series A funding round led by Dawn Capital and DN Capital; with a further £15m in debt funding provided by Shawbrook Business Credit.
Founded by Richard Prime and Damon Chapple in 2014, Startups Awards finalist Sonovate says it helps UK recruitment companies achieve growth by providing them with working capital to alleviate the cashflow and administrative problems of using traditional contractors.
The company, which also has an office in Cardiff and employs 45 people, has said it will use the finance to capitalise on the growing opportunities in the international recruitment sector.
The investment follows an earlier £10m investment round from PNC Business Credit in October 2014.
Prime commented: “Agencies providing contract solutions have relied on outdated, inflexible bank products which don’t provide the automation and technology that agencies are crying out for.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, added:
“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.”