Cryptocurrency insurance platform Coincover raised $9.2 million in a Series A funding round led by Element Ventures.
Also participating in the round announced Thursday were DRW Venture Capital, CMT Digital, Avon Ventures, Valor Equity Partners, FinTech Collective, Susquehanna Private Equity Investments, Volt Capital and the founding investors, Insurtech Gateway Fund and Development Bank of Wales.
Coincover had raised about $2 million in seed funding prior to the A round, bringing total investment in the platform to just over $11 million.
Insurance to cover the loss of cryptocurrencies remains thin on the ground as underwriters gradually get their heads around this new risk paradigm.
Coincover was the first crypto insurance platform to offer a Lloyd’s of London-backed policy to cover digital assets in wallets connected to the internet, known as “hot wallets.”
“Hot wallet demand is something that’s growing a lot,” Coincover CEO David Janczewski said in an interview. “You can also call them ‘warm,’ so cold, but with some sort of online component. To reach this point, we have worked very closely with the underwriters at Lloyd’s of London, and went through an education journey with them.”
Coincover, which works with the likes of BigGo, Curv and Fireblocks, says it also provides backup keys for wallets and “deposit protection guarantee” for customers’ wallets up to the value of $1 million.
“Firms like BitGo and Fireblocks build great technology stacks. We come in when there tends to be a human involved in the process, where people can make mistakes,” Janczewski said.