Lloyd’s approved crypto insurer Evertas grabs $14m for ‘dangerously exposed’ Web3 world
Evertas, a cryptoasset and blockchain insurance that became a Lloyd’s coverholder earlier this year, has attracted $14 million Series A investment to bring “much-needed” risk transfer to the “under-insured” Web3 world.
The financing round was led by Polychain Capital, bringing the company’s total outside investment to $19.8 million. Other participants in the round include 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.
Evertas intends to use the proceeds of the round to expand underwriting capacity, add key personnel and further develop proprietary enabling technologies and standards.
As a Lloyd’s coverholder, Evertas can write and service policies insuring custodial cryptoassets and blockchain infrastructure.
The company explained that the timing of the round is notable for 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, and sparked tremendous interest in, risk transfer products for crypto and blockchain infrastructure. They have also underscored the challenges generated by the extreme lack of insurance capacity afflicting the market,” Evertas said.
According to the firm, less than 3% of digital assets are thought to be insured against theft or loss, “leaving the market dangerously exposed”.
“2022 has been a very important year for Evertas,” said CEO and Founder J. Gdanski. “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.”
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.”
“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.”
Polychain Capital Founder and CEO Olaf Carlson-Wee believes “the crypto industry currently lacks insurance products and Evertas is well-suited to help fill that gap.”
SinoGlobal Capital CEO and General Partner Matthew Graham, said: “Blockchain technology is a rapidly growing sector where demand for insurance on crypto assets dramatically outstrips supply and will likely continue to do so long term. Evertas is the first and so far, only player to achieve Lloyd’s of London coverholder status and the regulatory approval required to directly write policies on the broadest range of crypto asset and platform types.”
Bloccelerate CEO and founder Kate Mitselmakher commented: “The lack of mature insurance options is currently holding back billions of dollar’s worth of institutional capital from investing in Web3 space. Only 2-3% of all crypto assets are properly insured. Should Evertas succeed, the floodgate for crypto and blockchain enterprise adoption will open.”
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