Evertas, an insurtech startup that claims the be the first in the world focusing purely on insuring cryptoassets and related blockchain technologies, has announced that it has raised $2.8m in a seed funding round.
Founded in 2017 and formerly known as BlockRe, Evertas primarily insures cryptoassets, such as cryptocurrencies Bitcoin and Ethereum, held by organisations. Customers include traditional financial institutions, ultra-high-net-worth individuals, family offices, exchanges, custodians and funds.
The seed funding round was led by Morgan Creek, with additional investment in Evertas coming from Wavemaker Genesis, Kailash Ventures, Plug n Play, Vy Capital and RenGen.
Evertas funding reflects significant promise of cryptoasset insurance
The investment highlights the growing potential of the nascent cryptoasset insurance industry, which Evertas is positioning itself at the heart of.
While the combined market capitalisation of crytpocurrencies is believed to be around $270bn, the uniquely challenge nature of underwriting cryptocurrencies and related assets has deterred many traditional insurers from entering the space.
As a result, the insurance industry worldwide can currently only insure $1-2bn of the market – and with Evertas planning to use its funding to grow its reach, it is hoping to take a significant share of the untapped cryptoassets.
“We believe we are the only company in the world focused solely on providing insurance coverage for cryptoassets and users of blockchain systems,” said J Gdanski, CEO and founder of Evertas.
“We are unique in that we offer the full suite of services for these assets – from risk audits, to underwriting, investigations and claims handling.”
This is a view echoed by investors.
“Insuring digital assets remains one of the last remaining barriers to entry for institutional investors,” said David Seimer, managing partner of Wavemaker Genesis.
“Wavemaker Genesis is excited to support Evertas as they bring a unique blend of traditional insurance and digital asset expertise to address the overwhelming market demand for comprehensive insurance.”
The insurtech startup also sees the growing institutional and governmental interest in cryptoassets as key to its future growth.
“Cryptoassets are increasingly being recognised by governments, regulators and industry bodies, and the sector will continue to enjoy rapid growth,” said Gdanski.
“We are well positioned to capitalise on this and are doing so working directly with clients, but also through partnering brokers and carriers.”