Insurtech startup Nayms has closed a £1.5m seed round led by XBTO, alongside other top investors across insurance, capital markets and crypto such as Coinbase Ventures, Maven11, the founders of Synthetix and Insurtech Gateway, who co-founded the project with CEO, Dan Roberts, from day one.
The funding will enable Nayms to continue launching larger pilot programs in preparation for a full launch later in 2021 following graduation from the Bermuda Monetary Authority (BMA) sandbox into a full regulatory license.
The project now has runway to build its customer base and work on capital market integrations prior to its Series A, planned for Q1 2022.
The funding round coincides with the launch of the company’s first pilot, a digital insurance contract placed by Breach Insurance for their client, Coinlist. Breach CEO, Eyhab Aejaz said:
“There is a well-documented shortage of re/insurance capacity available to digital asset risks and in order for Breach to scale our business to new markets and additional products, it is imperative for us to identify complementary sources of re/insurance capacity and collateral. Our partnership with Nayms allows Breach to cover complex digital asset risks at scale — similar to how this problem is solved for traditional catastrophic risk insurance in the P&C and Surplus Lines markets.”
The policy is a crime contract covering electronic theft and phishing risk, with cover provided by MakerDAO, an existing investor in the Nayms venture.
Following the pilot, Nayms CTO Theodore Georgas said:
“This pilot represents a small but significant milestone for Nayms as we move into 2021 with accelerating traction. It is our belief that the problem of scaling insurance protection for the digital asset space will be solved through a collaboration between regulated underwriters/brokers and capital markets. Nayms is building the infrastructure to facilitate this collaboration.”
The cryptocurrency market is expected to reach a value of $11tn in the next 3 years. Greg Carson of lead investor XBTO said:
“We are pleased to invest in the Nayms project alongside some of the top insurtech investors. We see insurance as an important spoke of the cryptofinance evolution.“
Nayms uses smart contracts to collateralise cryptocurrency risk with matching crypto-assets, bringing insurance with no FX-risk to a space that is 96% uninsured. Nayms has partnered with one of their investors, MakerDAO, to collateralise these “Smart Insurance Contracts” using their stablecoin, Dai. This partnership will allow Nayms to apply their platform to traditional risk in the wider insurance market — and an initial pilot with SafetyWing is upcoming to do just this.
Nayms CEO, Dan Roberts, said in a statement:
“Nayms is on a mission with our ecosystem of investors, partners, advisors and our growing team to provide brokers with a tradable, transparent, traceable and trusted insurance contract for this emerging risk category of digital assets. We look forward to seeing how the world’s brokers start interacting with this technology in the months and years to come. We welcome our new investors who join us at this key time in our company’s development. We look forward to an exciting 2021.”