Geldards helps leading digital asset protection firm secure $30m investment

Geldards has helped Coincover, a leading digital asset protection technology business, secure a $30m (£25m) investment to support its expansion plans.

The deal, led by Silicon Valley-based investor Foundation Capital, will give Coincover fresh capital, allowing it to accelerate recruitment, product updates, and partnerships to safeguard the crypto ecosystem – preventing, compensating, and protecting against crypto threats.

Lawyers from Geldards’ Corporate team worked with the parties to complete the deal.

Alex Butler, Partner in the Corporate team at Geldards, said:

“We’re proud to have helped Coincover to secure this major investment. We worked closely with Gavyn, David and the Coincover team over the course of several months to manage the process through to a successful completion. As a firm we have managed many significant and high-value investment and financing deals for clients across several sectors in the UK, and so we were delighted to support another client in the digital asset space. This successful outcome demonstrates the capability and expertise we have within Geldards to advise on cases of this size and scope. We look forward to seeing Coincover continue to grow in the coming years.”

Gavyn Huzzey, Head of Legal & Compliance for Coincover, said:

“It was a real pleasure to be supported in this matter by Alex and the Geldards corporate team whose expertise, professionalism and responsiveness was exemplary throughout.”

Coincover was set up in 2018 by David Janczewski and Adam Smith and launched a year later. It provides businesses, infrastructure providers and consumers with products that protect them from both hackers and human error. Each year around £2.5bn of cryptocurrency is hacked and stolen.

It already works with more than 300 businesses, from exchanges and wallets to hedge funds, family offices, and banks. The firm also works directly with a number of digital asset custodians to keep their clients safe. Current partners include Fireblocks and Bitgo.

The new funding will accelerate customer adoption, ensuring Coincover can aid any digital asset business that needs protection. The alternative is struggling with disaster recovery solo, an almost impossible task for any business given the amount of expertise and hardware needed.

Coincover Chief Executive David Janczewski said:

“At Coincover, we’re proud to prevent users from losing access to their cryptocurrency, whether that be through a mistake or the misfortune of being targeted by malicious online hackers. 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. 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.”

Charles Moldow, General Partner at Foundation Capital, added:

“After a tumultuous year for digital assets, investing in Coincover was a no-brainer. The brand offers assurance in a fast-paced market. This new funding will accelerate recruitment, product updates, and partnerships to safeguard the crypto ecosystem. With $3 billion stolen in hacks last year and 2023 set to see the arrival of crypto regulation, the opportunity is vast.”