New Investment: Everbloom

We are excited to share our investment in Boston-based Everbloom, a decentralized exchange for cryptocurrency trading and trading-related services. Indicator participated in Everbloom’s $1.5M seed round, alongside lead investor First Star Ventures and Mashable co-founder Frederick Townes.

While we don’t have a perfect picture of what the crypto landscape will look like in the future — and thus have no intention of picking and directly investing in cryptocurrencies at this time — we truly believe that this ecosystem (in some shape or form) is here to stay and will drive substantial innovation in financial services in the years to come. From an investment perspective, our interest is in blockchain infrastructure, and our investment in Everbloom is the perfect example of this.

Everbloom was founded by two crypto enthusiasts, Andrew Rollins and Scott Pirrello, who were tired of trusting third parties (i.e. centralized exchanges like Coinbase or Bittrex) with their funds. They resolved to build a decentralized exchange from the ground up; one that doesn’t directly custody assets or approve trades. The exchange offers a service-oriented approach to self-custody via compliant reporting and analytics features on its platform. While this is a new and exciting concept in its own right, another key facet of Everbloom’s model is the team’s decision to pursue and apply for a broker-dealer license — in other words, take the SEC-compliant route.

Everbloom’s decision to register with the SEC highlights Andrew and Scott’s meticulous and cautious approach to this uncertain regulatory environment. If successful, Everbloom would be the first decentralized exchange to become a licensed broker-dealer, something unprecedented in the cryptocurrency ecosystem. Everbloom’s goal is to attract institutional investors who seek cryptocurrency exposure, but don’t have access to the compliant solutions for custody, settlement, and execution services that they have come to expect from exchanges handling every other asset class.

We at Indicator have known Everbloom’s founding team for several years, tracking their roles as founders and executives at previous Boston-based venture-backed startups. We are honored and excited to support them in any way we can as they build their business. Andrew and Scott will use this new funding to hire additional engineers, expand Everbloom’s product offering, and continue the legal and compliance work.

To learn more about Everbloom, you can read their exclusive CoinDesk feature here.