Insuring cryptocurrency: Cardiff Bay-based Coincover fuels growth with latest investment round
The cryptocurrency market is heating up with significant growth in 2020 and a new wave of potential crypto investors ready to join in. But there is just one thing keeping them from taking the plunge – a safety net.
Coincover, on the way to becoming the #1 brand in crypto security and specialising in protecting cryptocurrencies held online, announced it has recently closed a growth funding round as it seeks to meet the growing demand from the cryptocurrency market.
The latest seven-figure equity round was led by Insurtech Gateway with co-investment from the Development Bank of Wales. Coincover is also backed by a business angel syndicate and funding from the Wales Angel Co-investment Fund.
Coincover was founded in 2018 by David Janczewski, who had spent several years leading The UK Royal Mint’s blockchain-enabled digital gold initiative and providing advice to other blockchain projects. Cardiff Bay-based Coincover is now at the leading edge of the nascent digital asset insurance sector estimated to be worth up to $3BN annually already.
Protected by Coincover is fast becoming the way for a business to demonstrate it has fully compliant crypto offering and is fully covered against the risk of its customer investments being lost or stolen by Coincover‘s unique compliance, security and insurance product offering explicitly built for blockchain infrastructure. And by providing Coincover protection direct to their customers, businesses can offer the world’s first way for consumers to take out protection for their investments, attracting more happy customers and creating an additional revenue stream in the process.
David Janczewski said: “Coincover helps crypto businesses to address the security concerns of the cautious investor and delivers the trust mark they need to stand out in a crowded and wary market. We are the only company in the world with a security product that is backed by Lloyds of London, providing protection from cryptocurrency theft at the individual level and an opportunity to maximise business revenue by enabling our partners to build systems that creates strong trust with their clients.”
Richard Chattock, CEO of the lead investor, Insurtech Gateway added: “Digital assets are growing at an exponential rate globally, and represent the next “blue ocean” for insurance and protection. Innovative solutions like those offered by Coincover are reducing the risks and barriers to digital asset adoption, and we were delighted to continue our support.”
David Blake from the Development Bank of Wales’ tech venture team commented: “We are delighted to support the ambitions of Coincover. This Wales-based company is leading its market sector, and the opportunities for international expansion are very exciting.
“We work closely with our colleagues in Angel Invest Wales to support tech-based ventures and attract further investment from co-investors for businesses in Wales. Insuretech Gateway’s support for Coincover is testament to their global growth potential in the cryptocurrency market.”
David Janczewski continued:
“Coincover is removing the last major barrier to the massmarket adoption of cryptocurrencies. We are already partnering with the world’s leading cryptocurrency solution providers to deliver the safest way into cryptocurrency. In the age of cryptocurrency vulnerability, businesses have to deal with people’s fear of lost or stolen funds. The platforms and products that offer the strongest safety guarantees and can ensure the security of their users’ funds are the ones that will come out on top in the next few years. Our partners can build a trusted brand as they can offer complete assurance to their customers. We have seen a huge growth in enquiries since COVID-19 lockdowns began around the world. This investment will allow us to meet this demand and fuel exponential growth.”