Chicago-based digital asset insurance startup Evertas has raised $14 million in a Series A Funding round led by Polychain Capital. The company intends to use the capital for capacity expansion and for developing new offerings.
Founded in 2017 by CEO J. Gdanski and President Raymond Zenkich, Evertas Inc. covers the full spectrum of crypto asset risks for institutional holders, including crypto exchanges, custodians, traditional financial institutions, funds, family offices, corporations, miners, and ultra-high net worth individuals.
The firm is Licensed by the Bermuda Monetary Authority to operate as a Class 3A Insurer. Evertas claims to be the only full lifecycle cryptoasset insurance solution provider; a world leading underwriting framework, bespoke cryptoasset policy form and claims handling.
“The new financing will bring much-needed risk transfer to the under-insured Web3 world, assisting in the market’s recovery from recent disruption,” Evertas said in a press statement.
“The crypto industry currently lacks insurance products and Evertas is well-suited to help fill that gap,” states Polychain Capital Founder and CEO Olaf Carlson-Wee.
Olaf added that the founders of Evertas are cryptonatives who have a deep understanding of both crypto-asset security and insurance, and are building the right tools, relationships, and products to push the next phase of crypto adoption and maturation.
The latest funding brings the company’s total venture capital investment at $19.8 million. The company raised $5.8 million seed financing. Evertas intends to use the proceeds of the round to expand underwriting capacity, add key personnel and further develop proprietary enabling technologies and standards.
Other VCs in the latest funding round include AngelList, Bloccelerate, CMT Digital Ventures, Foundation Capital, HashKey FinTech Investment Fund LP, Matrixport, Morgan Creek Blockchain Opportunities, Saison Capital, SCC Investments Master Partnership LP, and TRGC SPC Limited.
Individual investors include Paul Bohm, Adrian Brink, Amelia Cai, Kirill Gourov, Tom Howard, Andrew Keys, Avery J. Knapp Jr., Zaki Manian, Patrick McDonald, Brian Norgard, Salomon Rettig, David Roebuck, Balaji Srinivasan, Colleen Sullivan, Riva-Melissa Tez, and Patricio Worthalter.
“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.”
As a Lloyd’s coverholder, Evertas can write and service policies insuring custodial crypto assets and blockchain infrastructure.
“An investment in Evertas is more than just an investment in a Web3 startup. It’s truly an investment in the entire Web3 space,” said Co-Founder and President Raymond Zenkich. “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 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 funding is remarkable since it occurs during a period of intense turbulence brought on by FTX collapse and the failure of other crypto custodians. These high-profile incidents have brought attention to the need for risk transfer solutions for cryptocurrency and blockchain infrastructure and have greatly increased demand in them. They have also highlighted the difficulties brought on by the market’s severe shortage of insurance capacity.
Investor Tom Howard points out that regulation-by-insurance is the most cryptonative, free market way to ensure custodians and exchanges implement proper governance and risk controls. “When a user sees ‘Insured by Evertas’ they know that a high standard is certified by knowledgeable folks with skin in the game,” Howard added.
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