TL;DR Breakdown
- crypto insurer, Coincover raises $9.2 million in fundraising
- Crypto insurer, Coincover aims to provide cover on crypto investors holding
- How 20 percent of Bitcoin investment are lost
A Cardiff-based crypto insurer platform, Coincover, has secured $9.2 million in Series A funding.
The firm which provides insurance cover on crypto investments announced securing the funds on Thursday.
London’s Element Ventures led the Series A funding. DRW Venture Capital, CMT Digital, Avon Ventures, Valor Equity Partners, FinTech Collective, Susquehanna Private Equity Investments, LLLP, and Volt Capital participated.
Other participants are Founding investors Insurtech Gateway Fund and the Development Bank of Wales.
What crypto insurer, Coincover aims to achieve
The firm founded in 2018 is on a mission to see that investors are no longer at risk of losing holding due to theft, fraud, or business failure.
Coincover aims to achieve this through a platform that combines insurance-backed guarantees with secure backup and recovery of private keys, with a policy underwritten by Lloyd’s of London.
David Janczewski, co-founder, and CEO at Coincover, said, “Crypto can be complex and confusing, and people have valid fears around the safety of their funds. With Coin cover, we provide a fundamental building block for a rapidly maturing market by ensuring that people can be protected against making a mistake that can cost them thousands.
Gory tales of coin lost
As it set out to achieve its mission, the firm highlighted how 20 percent of all Bitcoin in circulation are lost or beyond holders’ reach.
This is as early crypto adopters could have become excessively rich were it not for misplaced private keys.
Crypto hacks are equally prevalent. These are the two issues at which the Welsh firm is aiming. Coincover’s “Secure Key Storage” product creates offline emergency backup keys for wallets, while its “Deposit Protection Guarantee” covers user wallets for up to $1 million in Crypto should the provider fail or suffer a systems outage.
The startup claims to have hundreds of customers, including the likes of BitGo, Curv, and Fireblocks.
