For businesses that operate across borders, managing currency risk is a silent but critical challenge. Fluctuating exchange rates can turn a profitable deal into a costly one, and the problem hits mid-sized firms hardest: too large to ignore the risk, too small to run a dedicated trading desk. This is where FX hedging for businesses comes in, protecting margins from currency swings without the need for an in-house trading team.
Bound, a London-based fintech startup, is on a mission to simplify currency risk management for such businesses. Co-founded by Seth Phillips and Dan Kindler in 2020, the company helps businesses protect their margins from exchange rate fluctuations with smart hedging strategies and real-time performance monitoring, delivering unrivaled speed and flexibility. “We make foreign cash flows more stable, more predictable,” explains Seth.
During our latest GoHub Ventures Founders Day, we talked to Bound’s founders to understand how they help companies follow best practices in currency exchange without requiring deep expertise or significant time investments.
Automating FX Hedging with Technology
The process of currency hedging, essentially protecting businesses against unfavorable exchange rate movements, has traditionally been the domain of large corporations with dedicated teams. “When companies get very large, they hire professional currency traders,” Seth notes. “But smaller or mid-sized companies, trading millions annually, often do it at random times, like when the money shows up in their bank accounts. That might be the worst moment to trade.“
Bound changes this dynamic by automating the process. Using Bound’s platform, businesses input a calendar of expected foreign cash flows, and the system optimizes trades based on market conditions. “We separate the concept of trading from the movement of cash,” says Dan. “You can trade in January, even if the cash moves in July. This lets businesses secure better rates and reduce risk without additional effort,” explains.
Bound’s solutions are designed to have a tangible impact. For companies collecting revenue in dollars while operating in euros, a 10% drop in the dollar’s value can translate into real losses. Bound helps measure this risk and implements strategies to minimize it. “We often reduce risks by 80 to 100%,” says Seth, emphasizing the effectiveness of their approach.
Based on a True (Domestic) Story
When discussing how they identified the problem that inspired them to start Bound, Dan shares a personal anecdote. “My father runs a small business in New York, earning in dollars and paying expenses in euros. He had no idea how to manage the currency risk. A small exchange rate fluctuation could wipe out half his profit margins. That’s when it hit us, why should someone who’s great at running their business also need niche expertise in currency trading?“
After seeing Dan’s dad and many of their friends struggle with currency trading, the two friends launched Bound with a clear vision: to make currency concerns disappear for their clients.
“Imagine signing a contract with an American customer, and for you, it’s just euros,” says Seth. “You don’t need to think about exchange rates whether it’s paying suppliers in yen or running payroll in Polish zlotys, our goal is to wrap around your business so you only deal with your home currency.“
To achieve this, Bound plans to enhance automation further. “Today, clients maintain a calendar of cash flows. Tomorrow, we want to automate that too, making currency management even simpler,” shares Dan about their product roadmap.
Lessons from Two Continents
Having both American founders present at Bellver Blue Tech Zone for our Founders Day, we chat about their perspective on the differences between the US and European startup ecosystems from a constructive point of view: what’s the best to take from each region.
“In the US, there’s often a higher level of ambition among employees,” Seth observes. “But Europe offers a unified regulatory framework that’s more conducive to certain industries, fintech innovation for example. The US, by contrast, is a regulatory patchwork. It’s one reason we started in the UK,” confesses.
Despite cultural and structural differences, the founders believe entrepreneurial drive transcends borders. “People who want to build something big and ambitious are the same everywhere,” says Dan.
Making Currency Risk Effortless
As Bound continues to grow, the challenge now is awareness. “Everything we offer could technically be done through a bank,” says Seth. “But it’s hard, time-consuming, and requires expertise. We’ve reduced that effort by 90%. Our job now is to make businesses aware that an easier, better solution exists.“
Through Bound, Seth and Dan aim to empower businesses to focus on what they do best without worrying about the complexities of currency trading. “Our mission is to make these risks invisible and effortless to manage,” Seth concludes. With a combination of technology, experience, and vision, Bound is well on its way to reshaping how businesses think about currency.
