According to TechCrunch, a digital asset protection company, Coincover, has raised $30 million in funding led by Foundation Capital. David Janczewski, the owner of Coincover explained that the funds raised will be focused on protecting people and their digital assets from hacks and human error.
The company after being officially launched in 2019 has currently raised over $41.6 million, Janczewski disclosed. The company is known to be working with banks, family offices, and about 300 businesses including crypto companies such as Fireblocks, BitGo, and Bitso.
Coincover has attracted a lot of investors since its launch in 2019, some of the known investors include SMT Digital, DRW, Venture Capital, Avon Ventures, Volt Capital, Element Fintech Collective, and Susquehanna International Group.
The company currently has two products namely Disaster Recovery and Theft Protection which are aimed to assist people in recovering or preventing the loss of their digital assets.
“The new capital will be used to recruit talent, update products and add partnerships against crypto hacks or human error,” Janczewski said. He added that the company has experienced many changes which have increased demands for their products.
According to Charles Moldow, the general partner at Foundation Capital, the investment and funding are mainly because of the harsh experiences in crypto. He explained that fear of loss or theft of assets is the most significant limitation to digital asset adoption.
FTX Collapse Increases Coincover Demands
As of last year, billions were stolen from the cryptocurrency industry. Moldow emphasized the essence of the digital asset protection industry. He stated that the opportunities are enormous as crypto is currently a $ trillion asset class.
Janczewski disclosed that there has been an increase in inquiries for Coincover since the shocking FTX Collapse. He explained that it is because companies are concerned about losing their crypto assets and want to protect their end users’ funds from being stolen.
Additionally, it was explained that private key backup has been introduced at Coincover for customers to recover their assets if it gets lost or their platform becomes unavailable. Coincover has also experienced an increase in demand concerning seed phrases backup, in which a route to recovery of funds has been provided.
Furthermore, Janczewski explained that Coincover is also focused on tackling social engineering which is common among hackers. He explained that, unlike traditional banks, Coincover is seeking to solve issues of scams and duping so that victims of such circumstances would still be able to recover their funds.
He urged companies to invest in mechanisms to protect themselves, their staff, and end users. Janczewski emphasized that businesses normally require third parties to help them back up their data or protect it. Therefore, their activities are very compulsory.