Evertas, the crypto insurance company that has provided underwriting for captive insurers, has raised nearly $5.8 million in seed funding.
The funding round was led by Morgan Creek Digital, CMT, HashKey, Wave Partners, RenGen, 4RC, Centrality, Plug ‘n Play and Vy Capital.
Evertas offers an underwriting framework for crypto and distributed ledger technology systems. It claims to be the only full lifecycle insurance product for crypto.
Evertas said it will use the funding to accelerate product development and enhance its infrastructure.
Raymond Zenkich, president and founder of Evertas, highlighted the disparity between the multi-trillion dollar crypto market and the less than $5 billion insurance capacity serving it.
“We have seen increasing demand for insurance products as institutional and regulated entities enter the space, creating a multi-billion-dollar opportunity for Evertas,” said Zenkich.
J. Gdanski, chief executive officer (CEO) and founder of Evertas, said the insurer plans to grow its own insurance capacity and launch its own carrier over the next 12 months.
“Doing so will be a critical next step in ensuring that there is reliable, sustainable, and sufficient coverage for the crypto industry, a stark contrast to what is available today,” he said.
Mark Yusko, founder, CEO and chief investment officer at Morgan Creek Capital Management and partner and co-founder of Morgan Creek Digital, said a well functioning insurance infrastructure will drive the evolution of the entire cryptoasset ecosystem. “Institutional and retail adoption, as well as regulatory acceptance, depends on the presence of a viable insurance market, and we anticipate Evertas to be a leader in that development,” he added.
Deng Chao, CEO of Hashkey Capital, said: “Given the huge gap between actual coverage and demand, we believe Evertas is in a unique position to narrow the gap given their deep knowledge of cryptoassets and cybersecurity. We expect Evertas to create a real foothold in the traditional insurance world.”
Several individual investors also participated in the financing, including James Slazas, Tyler Ward, Quinn Abrahams, Shy Datika and Sandra Ro.
Evertas, Raymond Zenkich, J. Gdanski, Mark Yusko, Deng Chao, Hashkey Capital, Morgan Creek Capital Management, Wave Partners, RenGen, 4RC, Centrality