Welsh crypto insurer Coincover lands $ 9.2 million Series A fundraiser

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Coincover, a Cardiff-based startup offering insurance protection to crypto investors, has secured $ 9.2 million in Series A funding.

Announced Thursday morning, the investment was led by Londons Element Ventures with participation from DRW Venture Capital, CMT Digital, Avon Ventures, Valor Equity Partners, FinTech Collective, Susquehanna Private Equity Investments, LLLP and Volt Capital. Founding investors Insurtech Gateway Fund and the Development Bank of Wales have also crowded in.

Founded in 2018, Coincover aims to ensure that investors never lose access to crypto holdings due to theft, fraud, user error, or business failure. The company does this through a platform that combines insurance-backed guarantees with secure private key backup and recovery, with a policy underwritten by Lloyds of London.

Crypto can be complex and confusing, and people have legitimate concerns about the safety of their funds. With Coincover, we provide a fundamental building block for a maturing market by ensuring that people can be protected from mistakes that can cost them thousands of dollars, said David Janczewski, Co-Founder and CEO of Coincover.

Tales of lost coins

Stories of early crypto users who could have become exceedingly wealthy without the misplaced private keys have become commonplace in the industry.

Quoting the New York Times, Coincover pointed out in a press release that 20% of all bitcoin in circulation is currently lost or out of reach. Crypto hacks are also prevalent. These are the two issues that the Welsh firm is tackling.

The Coincovers 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 in the event of vendor default or failure. system failure. The startup claims to have hundreds of customers, including BitGo, Curv, and Fireblocks.

Michael McFadgen, Partner at Element Ventures, said Coincovers infrastructure can help drive the crypto industry towards mass adoption.

More and more people are investing in cryptocurrencies, but the industry needs infrastructure and collateral to make it more user-friendly, he added.

2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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