Crypto Protection Firm Coincover Raises $30M

Coincover, a provider of protection and insurance for digital assets, has raised $30 million in a funding round that will go toward hiring, product updates and pursuing partnerships. The round was led by Silicon Valley investment firm Foundation Capital, according to a press release.

Hackers stole a record $3.8 billion worth of digital assets in 2022, according to a recent Chainalysis report. The largest victims were decentralized finance (DeFi) protocols, and the highest losses were tied to North Korea-linked hackers.

Coincover's products offer asset protection – from hackers or human error – to businesses, infrastructure providers and consumers. The company works with more than 300 businesses, including crypto custodian Fireblocks and crypto exchange Bitso. Coincover was also one of the first firms to work with U.K. insurance market Lloyd’s of London.

The U.K.-based company was founded in 2018 by CEO David Janczewski, who worked in blockchain at The Royal Mint for the U.K. government, and Chief Technology Officer Adam Smith, who ran a cybersecurity consultancy firm that included crypto, government, law enforcement and defense clients.

“In the wake of a challenging year for the crypto market, Coincover is in high demand, as businesses and consumers scramble to safeguard their digital assets,” Janczewski said in the press release. “Through this new funding, we can supercharge our service for all existing and future customers – building a better and more mature digital asset ecosystem in the process.”

Coincover raised $9.2 million in a Series A funding round in July 2021 led by Element Ventures with participation from DRW Venture Capital and Susquehanna Private Equity Investments.

Read more: Crypto Winter Led to 91% Plunge in VC and Other Investments for January