In the latest development, a startup that provides life insurance and annuities linked to bitcoin (BTC) has successfully secured $40 million in a Series A funding round, as announced by CEO Zac Townsend in a post on X this Thursday.
The investment round was spearheaded by venture capital firms Framework and Fulgur Ventures, with notable participation from early Bitcoin advocate Wences Casares.
While traditional life insurance typically pays out in fiat currency, this innovative model maintains premiums and payouts in bitcoin, aimed at assisting policyholders in safeguarding their finances against inflation and currency devaluation. In regions where local currencies are unstable, holding policies in BTC could serve as a means to preserve buying power for future benefits. Nevertheless, policyholders also face the challenge of bitcoin’s market volatility.
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The organization intends to utilize the raised funds to fast-track its international expansion, focusing on areas where inflation and currency issues are prevalent, according to Townsend. The startup did not reveal its current valuation or detailed market entry strategies in the announcement.
“This funding round equips us with vital capital to propel our vision of establishing the world’s leading long-term insurance and savings provider,” Townsend stated.
This investment follows a prior funding round where the company raised $20 million from a variety of investors, including Sam Altman, the CEO of OpenAI, alongside Google’s AI-focused fund Gradient Ventures. The firm also obtained a digital life insurance license in Bermuda the previous year.
