Evertas, the world’s first cryptoasset insurance company, has completed a seed stage funding round and raised $2.8 million. The funding round was led by Morgan Creek, who were joined by Plug n Play, Kailash Ventures, RenGen, Vy Capital and Wavemaker Genesis.
Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets, has joined Evertas’ Board of Directors.
Evertas focuses on covering institutional holders of cryptoassets including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals, and will be using these funds to support its strong growth plans.
The challenge of insuring cryptoassets
The market capitalisation of cryptoassets is around $270 billion and growing rapidly, but because of the highly specialised nature of underwriting the risks associated with these assets, there are very few insurers currently operating in this sector. This means the global insurance industry currently only has capacity of around $1-2 billion to insure the market.
J Gdanski, CEO and Founder of Evertas, said:
“We believe we are the only company in the world focused solely on providing insurance coverage for cryptoassets and users of blockchain systems. We are unique in that we offer the full suite of services for these assets – from risk audits, to underwriting, investigations and claims handling. Cryptoassets are increasingly being recognised by governments, regulators and industry bodies, and the sector will continue to enjoy rapid growth. We are well positioned to capitalise on this and are doing so working directly with clients, but also through partnering brokers and carriers.”
Founded in 2017, Evertas has a team led by an experienced group of executives including the founding Chief Insurance Officer (and founding member) of Lemonade, a blockchain team leader at Bank of New York, and a blockchain industry insurance expert. The founders have over 40 years of combined experience in the insurance sector, and more than ten in the crypto and blockchain markets.
Licensed by the Bermuda Monetary Authority
Earlier this year, Evertas received its licence from the Bermuda Monetary Authority to start operating from the jurisdiction. It operates as a ‘Class 3A’ insurer.
Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets, said:
“One of the most critical components of well-functioning markets is the presence of robust insurance infrastructure. Evertas endeavors to build a comprehensive insurance platform to support the emerging Crypto asset markets and we are pleased to partner with the outstanding leadership team at Evertas to contribute to the establishment of this solutions focused enterprise. Morgan Creek Digital invests across all areas of infrastructure within the digital assets ecosystem and we’re excited to include essential insurance services in our portfolio.”
As adoption of natively digital assets continues, the insurance industry will need specialists that understand risk management and best practices.”
Evertas has a strong position in that it has a deep understanding of the risks associated with cryptoassets but is also an expert in underwriting and insurance.
Evertas has a substantial advantage over other insurance companies in capitalizing on the cryptoasset space. It can do this on its own, but also by working with insurers and brokers as partners. Insuring digital assets remains one of the last remaining barriers to entry for institutional investors.