DeFi Risk Management Startup Cozy Finance Debuts With $2M Funding Round

DeFi Risk Management Startup Cozy Finance Debuts With $2M Funding Round

(Shutterstock)

A group of VC heavyweights and crypto entrepreneurs, including Blockfolio founder Ed Moncada, are backing a new risk management tool for the exploding decentralized finance (DeFi) space.

Announced Thursday, Cozy Finance has raised a $2 million seed round, led by Electric Capital and including Variant Fund, Dragonfly Capital, Robot Ventures, Slow Ventures, Volt Capital, Spencer Noon, Moncada and others.

The team attempting to bring some order to the creative chaos that is DeFi consists of Cozy co-founders Tony Sheng, formerly of Multicoin Capital, and Payom Dousti, co-founder of Rare Bits, a peer-to-peer marketplace for crypto goods.

The value of assets deposited in Ethereum-based DeFi dapps from $1 billion to over $8 billion in the span of six months. Developers have unlocked massive value for crypto investors by creating useful ways for them to manage their assets. However, these users face new forms of risk, like irreversible technical vulnerabilities.

Bank of England Governor Wants Global Regulations as Stablecoins Pick Up Steam

Previous

Blockchain Bites: Bitcoin’s Steep Sell-Off, Pornhub’s Crypto Payments, Twitter’s Latest Hack

Next

More