Crypto insurance firm Evertas raises $14 million from Polychain Capital: CoinDesk

Crypto insurance firm Evertas secured $14 million in funding in a Series A round, according to a report from CoinDesk.

The round was led by Polychain Capital and saw participation from investors including Sino Global Capital, CMT Digital Holdings, Matrixport and Morgan Creek. Several angel investors also participated including former Coinbase executive Balaji Srinivasan and BH Digital's Colleen Sullivan.

Evertas is a specialist insurance firm for the crypto industry which offers insurance for everything from theft and loss in relation to crime and custody, to more niche services like coverage for malfunctioning smart contracts.

The startup, founded in 2017, previously raised $5.8 million in a seed round this time last year led by Morgan Creek Digital, which also led Evertas' $2.8 million seed raise in 2020.

Earlier this year, Evertas won approval to call itself a Lloyd's of London coverholder, a type of specialty insurance provider authorized by Lloyd’s to write and service policies covering risk in geographies or niche sectors requiring high levels of expertise.

The digital assets sector is underserved by the broader insurance market, in part because it is so young but also due to its volatility. Broker Aon estimates the crypto market insurance rate is below 2%, according to Bloomberg Law. 

At the height of the bull market, insurance for digital asset firms could be a hard sell, said Dave Roque, head of digital assets insurance at USI, in a recent interview with The Block. That mentality shifted dramatically as the market soured, with his company witnessing  a 350% increase in client acquisition from fintech and crypto companies within the last year.