Crypto insurance company Evertas has announced the successful closure of a series A financing round.
Led by Polychain Capital, the round raised $14 million, and in addition to a $5.8 million seed financing, this puts the company’s total outside investment at $19.8 million.
In a press release, Evertas noted that it intends to use the proceeds of the round to expand underwriting capacity, add key personnel and further develop proprietary enabling technologies and standards.
Other participants in the round included SinoGlobal Capital, CMT Digital Ventures, Foundation Capital, Morgan Creek, Bloccelerate, Matrixport, and Hashkey.
Individual investors include Balaji Srinivasan, Andrew Keys, Colleen Sullivan, Tom Howard, Patrick McDonald and David Roebuck.
CEO and Founder J. Gdanski, said: “2022 has been a very important year for Evertas. It started with our gaining Lloyd’s of London coverholder status and is ending with a substantial vote of confidence by some of the smartest investors in the Web3 world. We will be working overtime to be worthy of that confidence.”
Moreover, as a Lloyd’s coverholder, Evertas also has the ability to write and service policies insuring custodial cryptoassets and blockchain infrastructure.
Co-Founder and President Raymond Zenkich, added: “An investment in Evertas is more than just an investment in a Web3 startup. It’s truly an investment in the entire Web3 space. That’s because the enormous cryptoasset insurance gap has impeded, and continues to impede, broad-based blockchain technology adoption. In empowering Evertas, these investors are empowering the entire crypto ecosystem.”
Zenkich also added that currently, less than 3% of digital assets are thought to be insured against theft or loss, leaving the market dangerously exposed.
The timing of the round is particularly notable because of how it coincides with the extreme tumult generated by the failure of FTX and other crypto custodians.
These high-profile events have highlighted the need for, as well as parked tremendous interest in, risk transfer products for crypto and blockchain infrastructure.
“Regulation-by-insurance is the most cryptonative, free market way to ensure custodians and exchanges implement proper governance and risk controls,” said investor Tom Howard.
“When a user sees ‘Insured by Evertas’ they know that a high standard is certified by knowledgeable folks with skin in the game.”
