(Image source: Evertas homepage.)
Evertas, a Chicago-based startup billing itself as 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 (Chapel Hill, N.C.), who were joined by Plug n Play (Sunnyvale, Calif.), Kailash Ventures (Calgary), RenGen (New York), Vy Capital (Dubai) and Wavemaker Genesis (Santa Monica, Calif.). 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. In February 2020, Evertas rebranded from BlockRe, founded in 2017.
“We believe we are the only company in the world focused solely on providing insurance coverage for cryptoassets and users of blockchain systems,” comments J Gdanski, founder and CEO, 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.”
Evertas, which focuses on covering institutional holders of cryptoassets including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals, reports that it will be using the new funds to support its strong growth plans.
The market capitalization of cryptoassets is around $270 billion and growing rapidly, but because of the highly specialized nature of underwriting the risks associated with these assets, there are very few insurers currently operating in the sector. This means the global insurance industry currently only has capacity of around $1-2 billion to insure the market.
“Cryptoassets are increasingly being recognized by governments, regulators and industry bodies, and the sector will continue to enjoy rapid growth,” Gdanski adds. “We are well positioned to capitalize on this and are doing so working directly with clients, but also through partnering brokers and carriers.”
Evertas is led by a group of executives including Ty Sagalow, the founding Chief Insurance Officer 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. Earlier this year, Evertas received its license from the Bermuda Monetary Authority to start operating from the jurisdiction. It operates as a ‘Class 3A’ insurer.
“One of the most critical components of well-functioning markets is the presence of robust insurance infrastructure,” comments Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets. 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.”
Insuring digital assets remains one of the last remaining barriers to entry for institutional investors, according to David Seimer, Managing Partner, 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,” he comments.
Huge Advantage in Capitalizing on the Cryptoasset Space
“We are delighted to be an early stage investor in Evertas,” comments George Damouny, Partner, Plug and Play Ventures. “The company has a unique and strong position in that it has a deep understanding of the risks associated with cryptoassets but is also an expert in underwriting and insurance. As well as investing in Evertas, we will also look to introduce them to our huge corporate network.”
“Evertas has a huge advantage over other insurance companies in capitalizing on the cryptoasset space,” Damouny adds. “It can do this on its own, but also by working with insurers and brokers as partners. Evertas has a very exciting future in a rapidly growing market and we are excited to continue supporting the company.”